What Has Not Caused The Crisis In Europe

Krugman describes what we have learned from the euro crisis. It is not what the seven dwarfs on the GOP campaign trail are telling its faithful. They are still selling American exceptionalism. The eurozone is in trouble because of its social welfare programs. We don't want to be like them do we? That is a line that brings the house down. The only problem with that line is that it is wrong. Krugman points to the thing the faithful cannot tolerate..data. The states in europe with the largest social spending programs are doing quite well. The problem is europe is that some economies are more competitive than others and individual states are deprived of monetary and fiscal policy to deal with the business cycle.