Eurosclerosis hits the US

For the first time in decades, with unemployment at roughly 9.5 percent the US has a higher rate than Germany's 7.5 percent. Only Germany has managed to overcome the problem of Eurosclerosis - stagnating employment despite economic growth - writes the daily Der Standard: "The same fate which Europe has suffered for years is now befalling the US and spoiling US President Barack Obama's otherwise rather passable performance on economic policy. Germany, on the other hand, is now reaping the rewards of Gerhard Schröder's highly controversial Agenda 2010. But there is still need for further action, for example on protection against dismissal. And in France and the states of southern Europe, the high unemployment rates are above all the result of a sclerotic labour market. But now that the high season for the macro-economists has come to an end it's time for the labour economists to show us how to create more jobs despite stagnant growth. And for the first time in decades the US must ponder over how to get its job market moving again."

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