Economic growth in Europe came in at zero
in the second quarter of 2014. That's better than being in recession.
But it's not the growth that Europe — with its huge unemployment rate of
12 percent, or roughly 19,130,000 people out of work — needs.
The eurozone (below in blue) has been in a depression since the financial crisis. That's because in terms of gross domestic product, the eurozone has not risen back to its pre-financial crisis levels. The U.S. (below in red) on the other hand has gotten out of its slump, and continues to grow at a decent clip:
With industrial production stagnant, mass unemployment still a problem, and inflation on a downward trend, economists such as The New York Times' Paul Krugman worry that Europe is turning into Japan. The former second largest economy in the world has spent over 20 years in a deflationary depression, a spiral of falling prices which encourage people to sit on cash, causing prices to plunge even further. Europe — with its aging population — has similar demographics to Japan, too, worsening the likelihood that it might end up in the same trap.
http://theweek.com/article/index/266423/europe-is-in-an-epic-depression--and-its-getting-worse
The eurozone (below in blue) has been in a depression since the financial crisis. That's because in terms of gross domestic product, the eurozone has not risen back to its pre-financial crisis levels. The U.S. (below in red) on the other hand has gotten out of its slump, and continues to grow at a decent clip:
With industrial production stagnant, mass unemployment still a problem, and inflation on a downward trend, economists such as The New York Times' Paul Krugman worry that Europe is turning into Japan. The former second largest economy in the world has spent over 20 years in a deflationary depression, a spiral of falling prices which encourage people to sit on cash, causing prices to plunge even further. Europe — with its aging population — has similar demographics to Japan, too, worsening the likelihood that it might end up in the same trap.
http://theweek.com/article/index/266423/europe-is-in-an-epic-depression--and-its-getting-worse
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