The Donkeys love to talk down the US economy and the Bush tax cuts that revitalized it. This is what a truly bad economic situation looks like:
The eurozone business climate plunged in March for the second month following grim data from Germany, France and Italy.
The monthly index released by the European Commission yesterday turned negative for the first time in a year as higher oil prices and the strong euro took their toll. There was sharp fall in order books, especially for exports.
The European Central Bank has already cut its growth forecast for 2005 to 1.6pc from 2.3pc but is unlikely to come to the rescue soon with lower interest rates.
Ominously, the eurozone slowdown comes despite bulging fiscal deficits and a stubbornly high inflation rate of 2.1pc, causing ECB officials to fret over a possible return to 1970s 'stagflation' - a combination of slow economic growth and rising prices.
They also predict a growth rate of 1.5%, half that of the US. This is a clear example that socialist policies in conjunction with low productivity and a 35-hour workweek add up to dismal economies.
It seems the one bright spot would be Britain.
Thursday, March 31, 2005
The Euros Bad Economy
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I believe Ireland is also doing pretty well at avoiding the Socialist trap, and some of the eastern European countries have great potential (although still a lot to overcome from years of Soviet Rule.)
It is interesting though that most of Europe is expiriencing economic woes that would drive any political party out of power if they were to happen here. Unfortunately for Western Europe, their economic problems will be compounded by demographic problems of a rapidly aging population very soon.
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