June 22, 2012
Welfare Queens of the Amerizone

From Krugmanís blog:

So it comes as something of a shock to look at Eurostat data (pdf) on real GDP per capita (or productivity, which look similar). Sure, Greece and Portugal are relatively poor, with GDP per capita of 82 and 77 percent, respectively, of the EU average; this means roughly 76 and 71 percent of the eurozone average, since the euro countries are a bit richer than the EU as a whole. Meanwhile, Germany is at 120 percent of the EU, or 112 percent of the eurozone.

But itís no different, really, than the US situation (look under per capita GDP). Alabama is at 74 percent of the US average, Mississippi at 67, with New England and the Middle Atlantic states at 118 and 116.

In other words, as far as underlying economic inequalities are concerned, the EZ is no worse than the US.

The difference, mainly, is that we think of ourselves as a nation, and blithely accept fiscal measures that routinely transfer large sums to the poorer states without even thinking of it as a regional issue ó in fact, the states that are effectively on the dole tend to vote Republican and imagine themselves deeply self-reliant.



Posted by Jerome Doolittle at June 22, 2012 02:04 PM
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