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Although the countries in the Eurozone only account for about 15% of American exports, some economists speculate the deteriorating economic situation in Europe could prevent American economic recovery. Others speculate that Europe's problems could "aid consumer recovery in the United States, not slow it." What is your opinion on how large of an effect Europe can have on America's economic recovery?
http://www.nytimes.com/2010/05/30/business/30fund.html?ref=business
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I'm not sure it with either help or harm economic recovery in the US. I feel like our exports focus is in China, who is doing quite well and that Europe has been doing poorly for a while, with little or no effect on our recovery at all.
ReplyDeleteI find it hard to believe that the economic situation in Europe could have such a small effect on the United States, especially if the eurozone continues to deteriorate. If another European country falls to the same fate as Greece and needs bailout money the United States will once again be expected to foot part of the bill. While spending money on bailouts is nothing new to the United States government it is money that could be allocated elsewhere. In addition, if Europe isn't doing well there is a ripple effect on the whole world economy. Even though the eurozone only directly accounts for 13% of American exports if the eurozone economy slows it effects other trading partners of the United States and has a bigger effect than one may realize simply by looking at statistics.
ReplyDeleteI think we've learned this is true from the crisis. All world economies are affected by major destabilizing events, even they are mostly in a few countries.
ReplyDeleteI agree with Matt. In this time is different we read that the global economy is effected when high profile countries experience financial burdens. Although the euro does not account for a large portion of our exports I think the instability of the Euro is not a good sign for the U.S. and global economy as a whole.
ReplyDeleteIt is no surprise that we may not grow at the same rate as Matt and k06rl01 have said. At least there needs to be another hard shock to send us into a recession with Europe but I think both Europe and the U.S. will be okay even if indicators and our indices show poor numbers.
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