Monday, February 1, 2010

Liberty v. Govt Planning - Who's Winning?

http://www.cato-at-liberty.org/2010/01/15/america-vs-europe/
The blogosphere has been buzzing with a debate on whether America or Europe is more prosperous. A partial list of contestants includes Jim Manzi, Paul Krugman, Matt Welch, Megan McArdle, Matthew Yglesias, and Tino (don’t know who he is, but his blog has lots of good info).

The data for both these charts is from earlier this decade, but as this up-to-date OECD data on economic performance indicates, the United States certainly has not lost any ground relative to Western Europe in recent years. Last but not least, this post is not an attack on Western Europe, which is a very wealthy region by global standards. But the data certainly show that America is even richer. And since the biggest policy difference between the U.S. and Western Europe is the burden of government, this certainly suggests that the Bush-Obama policies of bigger government and more intervention may not be a path to more prosperity.

One final comment. Luxembourg is the one Western European nation that ranks above the United States according to both the OECD and the Danish Finance Ministry. If any statists want to suggest that we mimic Luxembourg’s tax haven policies, you can count on my support.

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