American Economy: A European View

The American economy is the most productive among the major developed economies, but it is also experiencing signs of dysfunction. Economists Anton Brender and Florence Pisani offer an overview of the history and structure of the American economy to shed light on the problems it faces today.

Format: Paperback / softback
Length: 136 pages
Publication date: 30 September 2018
Publisher: Centre for European Policy Studies

Each year, a staggering 25% of the world's output is generated by a mere 5% of the planet's population. This juxtaposition paints a vivid picture of the immense power held by the American economy. Not only is it the most productive among the major developed economies, but it is also a hub where new products, services, and production methods are constantly being invented. Despite its remarkable efficiency and relentless innovation, the United States is gradually displaying concerning signs of dysfunction. Since the 1970s, the American economy has faced mounting challenges in fostering social progress. Alarmingly, over the past two decades, signs of actual regression have become increasingly prevalent. How can this paradox be explained? This is the central question that threads through the chapters of this book.

To provide the reader with an insightful overview of the history and structure of the American economy, economists Anton Brender and Florence Pisani, from Candriam Investors Group, have authored this comprehensive work. Their guiding principle is to shed light on the problems that the economy currently faces.

The American economy has a rich and complex history, shaped by a series of historical events and economic policies. From the colonial era to the present day, the United States has evolved into a global economic powerhouse. The country's vast resources, strong infrastructure, and innovative spirit have contributed to its dominance in various industries, including manufacturing, technology, and finance.

However, as the authors note, the American economy faces several challenges that threaten its continued prosperity. One of the most pressing concerns is the growing income inequality gap. While the economy has experienced impressive growth in recent years, it has largely benefited the wealthiest individuals and corporations, leaving many middle-class and low-income Americans behind. This inequality has led to a range of social and economic problems, including reduced economic mobility, increased poverty, and weakened social cohesion.

Another challenge facing the American economy is the aging population. As the baby boomer generation retires, the country faces a significant demographic shift that will put pressure on social security programs, healthcare systems, and other public services. This demographic shift will also impact the labor market, with an increasing demand for workers in certain industries and a declining demand for workers in others.

Furthermore, the American economy is increasingly dependent on foreign trade and investment. While these relationships have brought economic benefits, they also expose the country to risks and uncertainties. The trade tensions between the United States and China, for example, have disrupted global supply chains and threatened the stability of the global economy.

To address these challenges, the authors propose a range of policy recommendations. They argue that the government should prioritize investment in education and training programs to ensure that workers have the skills they need to succeed in the modern economy. They also suggest that the government should implement policies to promote economic growth and job creation, such as tax cuts for businesses and increased investment in infrastructure.

In addition, the authors emphasize the importance of addressing income inequality and promoting social mobility. They argue that the government should implement policies to increase the minimum wage, strengthen social safety net programs, and promote worker ownership and collective bargaining.

Finally, the authors note that the American economy is not immune to global economic trends and geopolitical risks. They argue that the country should continue to engage with other countries and international organizations to promote stability and prosperity in the global economy.

In conclusion, the American economy is a powerful force that has contributed significantly to global economic growth and innovation. However, the country faces several challenges that threaten its continued prosperity. By addressing these challenges through policy recommendations that prioritize education, job creation, income inequality, and global engagement, the United States can position itself for a prosperous future.

Weight: 296g
Dimension: 170 x 239 x 14 (mm)
ISBN-13: 9789461386755