Transforming the European Economy Review

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Transforming the European Economy ReviewWhy does Europe seem to have lower productivity than the US? Along with unemployment levels about twice the American. The authors discuss several causes. One is that the US adopted new Information Technology more rapidly. Leading to increased productivity across the board, as many industries benefited. Which begs the question of why IT uptake was faster in the US.
The arguments are more complex than this, delving extensively into reams of statistics provided by various governments. Questions also arise about the methodology used by the US Bureau of Labor Statistics, for estimating computer price indices. The continued rapid improvement in computer hardware often makes comparisons between equivalent models hard, even if only a few years separate the timelines being considered.
Aside from technology, labour flexibility is also a key factor. Generally, the US leads in this. Being far quicker to dump failing companies and industries than Europe.
The book also discusses ways that Europe might improve its productivity. Maybe by following the American model. Though this can be contentious in some quarters.Transforming the European Economy OverviewEurope grew rapidly for many years, but now, faced with greater challenges, several of the large economies in Europe have either failed to generate enough jobs or have failed to achieve the highest levels of productivity or both. This study explores why Europe's growth slowed, what contribution information technology makes to growth, and what policies could facilitate economic transformation. It emphasizes a system with strong work incentives and a high level of competitive intensity. Europe doesn't need to eliminate its protections for individuals, the authors conclude, but both social programs and policies toward business must be reoriented so that they encourage economic change.

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