Economies: Europe Vs. USA, Texas vs California


America vs Europe Summary Notes

In analyzing the last 5 years it’s interesting to note that high unemployment rates in the US during the “greatest recession since the great depression” pretty much the average unemployment rate for Belgium, Finland, France, Germany, Greece, Spain, Poland and Slovakia. There are exceptions: Austria, Ireland and the UK. But the European Union as a whole experiences chronically high unemployment rate.

Raw Data

US Historical Unemployment rates


Eurosclerosis as defined by Paul Krugman on page 210 of Macroeconomics:

Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker’s incentive to quickly find a new job. Generous unemployment benefits in some European countries are widely believed to be one of the main causes of “Eurosclerosis,” the persistent high unemployment that affects a number of European countries.


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