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Author: zoningfool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 137113  
Subject: Re: Obama's Euro-Socialism Date: 10/9/2012 9:41 AM
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... the Nobel laureate economist Robert Lucas, an expert on economic growth, put together a lecture on the economy because so many people asked him why the U.S. economy's post-recession growth rate was struggling around 2%.

He noted that in the years after World War II, both the U.S. and Europe grew at an annual rate of about 3%. But in the mid-1970s, Western Europe dropped below that growth rate and stayed there, creating a 20% to 40% gap in income levels between Europe and the U.S. Prof. Lucas suggested this had to do with the cost of maintaining the social-welfare commitments Europe accumulated in the postwar years.

He then looked at the levels of U.S. social-welfare commitments, including the new Obama health-care entitlement, and ended with a simple observation: "Is it possible that by imitating European policies on labor markets, welfare and taxes, the U.S. has chosen a new, lower GDP trend? If so, it may be that the weak recovery we have had so far is all the recovery we will get."..


http://online.wsj.com/article/SB1000142405270230391690457737...
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