Tchocky |
01-11-08 04:42 PM |
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Originally Posted by SUBMAN1
Do you have any idea why the income inequalities are growing faster over here than Europe? Try illegal aliens. ALl 12+ million of them. That is a true statement if you include them. Remove them from the equation and we probably have equal or lesser rates than Europe.
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Immigration (both legal and illegal) is a factor in rising inequality, as is falling union membership. But I very much doubt that illegal immigration is responsible for all of the disparity, seeing as the US model has a built-in tendency towards higher inequality than the EU. When comparing US and EU, keep in mind that the overall economic ideology of the US includes a higher level of ineqaulity as an immediate result, whereas the model adopted by many EU countries seeks to rectify inequality. Different strokes, etc. Just like Europe has a higher natural rate of unemployment, the US has higher inequality.
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I have yet to see you not hit as hard as we do. Our recessions include an increase in GDP funny enough too, so I think the idea of a recession in Americas eyes is much different than Europe - we all get ticked off when our investments aren't growing as much - 1% to us is a recession, where you're idea of one is going backwards
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There are not different ideas of a recession in different countries, it is a term with a definition. A positive-growth recession? A recession is negative growth for two consecutive quarters. 1% is not a recession, it is slow growth.
If people start calling 1% growth a recession, that doesn't change the meaning, it just means they are wrong.
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2% in my book is nothing to write home about. 4% is, and 5% is great. We normally have those numbers after you look at the yearly totals.
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Again, there are other factors than GDP growth to consider. But you're right in general.
Given the differences between the two blocss, on the upswing of the business cycle the US will usually be growing faster than the EU. That's where both economies are growing to plan, and again doesn't lend itself to comparison.
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