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Good diary.

Here's some food for thought for you on the budgetary front:

Dépenses = Spending
Recettes = Income

both as a % of GDP.

This is the only time that spending has increased after the recession instead of going down. 9/11 changed everything.
This is also the most massive cut in income that you can see. Coming back on the insane tax cuts for the rich might be a good thing, don't you think? (And the increase in recent months is due to the one-off repatriation of profits by US corporates thanks to the law allowing these to be taxed less than usual)

I'd argue that a good way for Europe to consume more would be for the English language commentators to stop saying that everything is going badly in the eurozone. This has a bad influence on morale, and thus consumption, and happens not to be true:

As to Asia - indeed, they should invest more domestically. But they fear inflation, they fear losing their competitivity if they devalue, and they fear that the US economy will close to them if they stop buying US Treasuries, so it's not so easy.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Nov 24th, 2005 at 04:56:26 PM EST
Any idea how the employment situation has changed from 2001-2005 in Europe?  I suspect much of the job growth, both in America and Europe, came during the Dot-Com Boom, and that the growth has been poor in both since the recession began.

The US unemployment rate is also, as you all know, not only 5%, but more on the order of 6-7%, if you calculate the statistics properly.  So I suspect Europe is in slightly better shape, comparatively, than these numbers suggest.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Thu Nov 24th, 2005 at 06:17:34 PM EST
[ Parent ]
Jerome, the first chart you showed from the BEA was significantly differnt from the numbers in the US annual budgets.  The BEA figures show revenues and expenditures around the 30--35% of GDP level, while the US numbers show more like a 20% level.  It might be at least partially due to handling social security differently, but I just didn't have time to track it down.  PS: I commented more broadly below--look forward to your comments.
by wchurchill on Fri Nov 25th, 2005 at 02:28:15 AM EST
[ Parent ]

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