-----Original Message----- From: owner-lbo-talk at lists.panix.com [mailto:owner-lbo-talk at lists.panix.com]On Behalf Of Hinrich Kuhls Sent: Thursday, October 21, 1999 3:58 PM To: lbo-talk at lists.panix.com Subject: RE: Positive features of U.S. policy
mbs:
>... You are quite
>right, in my view, that there is little to emulate in
>U.S. policy for the past 15 years, with an important
>exception. U.S. monetary policy has served U.S. workers
>better, RELATIVELY SPEAKING, than has European policy
>served European workers.
Eighty-one economists from across the United States in their statement to German colleagues: "Unlike the U.S. economy, the German economy has managed to produce large gains in living standards for the vast majority of its work force over the last quarter century. Measured productivity growth in Germany has also significantly outpaced productivity growth in the United States, and by some measures absolute productivity levels are higher in Germany today. It is no surprise therefore that in Germany real wages should also be igh." ---
Opinions are divided, absolutely speaking. So what's myth, and what's
reality in the outcome of the expansionary U.S. monetary policy of the last
decade? Perhaps some comparative statistics of real economic life could be
helpful - irrespective of the statement.
HK
>>>>>>>>>>>>>>>>>>>>>>>>
Both statements are true. The EU has productivity growth, wages, and social benefits that compare favorably to the U.S., while for employment the reverse is true (though less than is apparent on the surface, see Beware the U.S. Model). U.S. triumphalism is premised on focusing on our low unemployment rate, and glossing over everything else.
mbs