Is the US economy really recovering faster than Europe?
- What is Biden doing right?
- What are European Socialists doing wrong?
JPMORGAN: The spread between the US and European recoveries continues to widen, driven by “more concentrated fiscal support in the US. ... The pending $1.9tn fiscal relief package in the US should exacerbate the divergence in growth.”
**CORRECTION**
The US has the fastest recovery due to the enormous amounts of money spent by the federal government to support the economy. And the person responsible for that is Pelosi.
That really has little to do it, because while yes the people to refuse to accept covid is real are imbeciles that's not what's driving the wedge between Europe and the US on the economy and I say this as a European who's mad as hell at the EU and various governments around here.
The EU has simply sucked on handling this entire crisis: We've had more cases, more deaths, our vaccination policies are idiotic and our handling of the economy is going downhill.
As a comparison the US has already passed 4 trillion in covid spending with 2 trillion about to pass now, the EU has passed 600 billion to deal with covid, that's 10 times less and while national governments will spend money on their own some, like mine, are being idiots and imposing austerity. The US and EU gdp is similar with the US at 21 trillion and the EU at 18 trillion.
The US is about to spend just shy of a third of it's entire GDP to handle covid. Europe won't even spend a tenth. Guess who will do well and who won't. Hell even if Biden hadn't won the US still would have spent 4 trillion and likely over 5 to deal with the issue.
"Life is one long series of problems to solve. The more you solve, the better a man you become.... Tribulations spawn in life and over and over again we must stand our ground and face them."
Oh look they pay 42% tax vs the United states 24%
but wait.
Denmark has an enviable education system in which tuition is free – including at university
US has, umm.... Property tax....and Student Loans.
In Demark, Not only is education itself free, but each university student is also given around $900 per month from the state
US has, ummm.... credit cards....2 jobs while going to school.
In Denmark, new parents can enjoy up to 52 weeks of paid leave when they have a child
US has, unemployment.
Denmark’s Health Law is centred on the goal of achieving universal access to healthcare. The principle is to provide free and equal healthcare to all, with the cost of the majority of services being paid for through the welfare system, via taxes.
US Has Premiums and 20%+ of the people without insurance....oh and bankruptcies
Danish parents are asked to pay around 30% of nursery fees for their children, with the remainder of the cost being financed by the state
US has, Debt
Of course the 42% takes into account other taxes like Sales/VAT/Property/state and Local Taxes/Social Security/Medicare Tax.....
Once you factor that in for the united states you are closer to 42% v 36%
Then factor in the 8-12% of income spent on health insurance/health cost.
Then factor in college education cost/loan cost.
Then factor in childcare if you work.
etc
etc
etc
hmmm 42% starts to look like a deal.
Buh Byeeeeeeeeeeee !!
Since you want to engage in a smear job: From the official EU website
https://ec.europa.eu/info/business-e...ce-facility_en
But it goes all the way to 750 billion, still a pittance compared to what we need. According to Bloomberg.The Recovery and Resilience Facility (the Facility) will make €672.5 billion in loans and grants available to support reforms and investments undertaken by Member States. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.
https://www.bloomberg.com/news/artic...utpaced-by-u-s
As for COVID. Statistics don't lie. Take vaccinations for instance: https://www.nytimes.com/interactive/...s-tracker.htmlPresident Joe Biden’s $1.9 trillion stimulus bill, if congressional leaders pass the full amount, would take his administration’s spending in 2021 to more than three times as much as euro-area countries have planned, according to UniCredit SpA.
As a consequence, most economists expect the U.S. economy to reach its pre-pandemic size around the middle of 2021, roughly a full year before the currency bloc.
JPMorgan Chase & Co. estimates the “fiscal thrust” — the boost from discretionary government spending minus the drag of expiring tax breaks and support measures — will add 1.8% to U.S. output this year. For the euro zone, it’ll subtract 0.1%.
Erik Nielsen, UniCredit’s chief economist, says the difference in spending plans compared to the U.S. is “mind-boggling” and the euro-zone approach is “severely inadequate.” It’ll lead to a muted recovery, higher unemployment, deeper economic scars and weak inflation, he said in his report.
Such an outcome would be all too familiar for the euro zone. Fixation on austerity to reduce debts after the 2008-2009 global financial crisis, rather than boosting growth through consumption, condemned the bloc to a sluggish recovery which turned into a sovereign debt crisis and double-dip recession.
Nielsen cites the so-called output gap as a key indicator of the problem. That gauge of unused economic potential is hard to measure precisely, but it’s widely considered to be bigger in the EU than in the U.S. at the moment. That means Europe should be doing more, not less, to boost its economy.
The US has managed to get a single dose for almost a quarter of their population. The EU countries? Less then 10%, and only Hungary has managed as of writing to get over that.
Last edited by Elenos; 2021-03-05 at 08:14 PM.
"Life is one long series of problems to solve. The more you solve, the better a man you become.... Tribulations spawn in life and over and over again we must stand our ground and face them."
That's proves my point, what are Socialist Doing wrong that they can win elections over there?
Democrats manage to win power despite massive structural disadvantages in gerrymandering and the EC.
Why cant European Socialists build a broad coalition to support them at the polls?
Trying to peel off voters with anti-immigration policies doesn't seem to be working so well.
Are you saying US does?
A far better argument is that places that already spend a lot on infrastructure, don’t have to spend as much when the need increases. Maybe the fact that cost of care in EU is cheaper, without insurance overhead, thus resulting needing to spend less during a health crisis.
Folly and fakery have always been with us... but it has never before been as dangerous as it is now, never in history have we been able to afford it less. - Isaac Asimov
Every damn thing you do in this life, you pay for. - Edith Piaf
The party told you to reject the evidence of your eyes and ears. It was their final, most essential command. - Orwell
No amount of belief makes something a fact. - James Randi
https://twitter.com/hjessy_/status/1...190847709191sv
Man, Sinema's energy is so "Let them eat cake".
https://www.c-span.org/video/?c49502...inema-votes-15
I disagree with her but the confidence and style of that no vote I have to give it to her