Wednesday, February 17, 2010
This chart makes it easy to see how Europe has been the laggard in the global recovery from the Panic Collapse of 2008. This continues a long tradition in which the European economies prove to be less volatile but also chronically less dynamic than those of the U.S. and the Asia-Pacific region. Big Government is one big reason for this; a case in point would be that since European companies find it much harder to fire people, they are also much less likely to hire them in the first place, thus explaining why German and French unemployment rates have been generally much higher than in the U.S.
In any event, U.S. industrial production has been rising now for seven straight months, at an annualized rate of about 10%. That counts as at least a moderate V-shaped recovery, as there's a whole lot of improvement still needed just to get back to where we were in early 2008.
Posted by Scott Grannis at 8:21 AM