Relative GDP Growth

Paper Summary:

This paper discusses the comparative GDP growth in the developed world. It focuses on why the US GDP growth has been consistently higher than the major economic powers of the European Union since 1982. It also looks at why the unemployment rate (or more accurately, the percentage of people of working age employed) is so much higher in the United States than in the major countries of Western Europe. The paper focuses primarily on France, Germany and Italy, with some mention of the United Kingdom.

From the Paper:

"France has a significant problem with some of the highest government burdens in Europe. Over 50% of GDP goes to the State in the form of direct and indirect taxes. As a result of this high social welfare spending, France is lagging other major countries in productivity growth. Sarkozy is pulling France back from the 35-hour work week, retirement at age 50 for some public workers (transport, coal mining) and attempting to reduce top income tax rates. This will be a wrenching change for France, but the cure should improve the country's overall chances of increasing growth."

Sample of Sources Used:

• Antweiler, W. "Purchasing Power Parity." 2007. UBC. 15 November 2007 <http://fx.sauder.ubc.ca/PPP.html>.
• Economist. Pocket World in Figures. London: Economist, 2008.
• Hahn, RW and Litan, RE. "Counting Regulatory Benefits and Costs: Lessons for the US and Europe." AEI Brookings Joint Center for Regulatory Studies (2005): 473-506.
• Stokes, B. "Europe Faces Globalization--II." 18 May 2006. Yale Global. 15 November 2007 <http://yaleglobal.yale.edu/display.article?id=7432>.

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• Analytical Essay # 147944 : "The Latin American Tourism Sector"

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