See Europe Doubles Down on Big Government: Economists fear high inflation and rising interest rates will make it harder for the continent to spend its way out of this downturn by Tom Fairless of The WSJ. Excerpts:
"In the U.S., state spending surged to 45% of gross domestic product in 2020, at the height of the Covid-19 pandemic, but has since declined to 37% of GDP, close to its precrisis level."
"Public-sector employment across the eurozone has risen 4% since 2019, compared with a 1% increase in market-services jobs and a 1% decline in manufacturing jobs, according to European Central Bank data."
"In the U.S., the number of government jobs has dropped more than 2% since early 2020, while private-sector job numbers have grown 1%, according to data from the Bureau of Labor Statistics."
"The eurozone’s inflation rate rose to 10.7% in October, a fresh high, while price growth in the U.S. slowed to 8.2% in September."
"Europe’s recovery has been slower than that of the U.S., with weaker investment. The eurozone economy likely is about 4% bigger this year than it was in 2019, when measured in dollars, while the U.S. economy is about 17% bigger, according to IMF data. Capital investment in the eurozone increased about 4% last year and 3% this year, while in the U.S., equipment investment surged 10% last year and 5% this year, according to JPMorgan."
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