Summary of Lessons from Europe’s Debt Crisis for the United States

In: Cato Journal

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Lessons from Europe’s Debt Crisis for the United States  summary
Europe’s sovereign debt crisis holds important lessons that the United States ignores at its peril.

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The United States is sleepwalking toward a fiscal precipice, lulled into complacency by historically low interest rates, says Desmond Lachman, a resident fellow at the American Enterprise Institute. His conservative-leaning article states that, unless it changes its trajectory, the US is on course to follow in the footsteps of Europe’s peripheral states. Although always politically neutral, getAbstract applauds this reminder that the US needs to acknowledge some uncomfortable facts now, before it’s too late.

In this summary, you will learn

  • How Europe fell into its sovereign debt crisis
  • How the United States is repeating many of Europe’s mistakes
  • Why America must learn from Europe’s missteps
 

Summary

The United States is blithely repeating the same mistakes Europe made in the run-up to its sovereign debt debacle. While Europe is struggling with a combined budget deficit of about 3% of GDP and a gross public debt ratio of around 90% of GDP, the US has a whopping 8% budget deficit and a gross public...
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About the Author

Desmond Lachman is a resident fellow at the American Enterprise Institute.


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