07-16-2012, 04:31 PM
Europe faces many economic challenges, but they differ by country. The countries of Western Europe not only face competition from China; they face pressure from the more efficient countries of Eastern Europe. Many of the countries of Western Europe have complained about the lower tax rates in Eastern Europe that give these countries a competitive advantage.
You also have to look at the difference between a country like Germany and Greece. Germany has a high tech export segment of their economy that is doing very well. I can't think of anything I've ever bought that was made in Greece.
However, the long term threat to the European economies is demographics. This threatens both their social programs and their GDP. They aren't having babies at anything close to the replacement rate. Long term economic growth depends upon labor, capital, and technology...
You also have to look at the difference between a country like Germany and Greece. Germany has a high tech export segment of their economy that is doing very well. I can't think of anything I've ever bought that was made in Greece.
However, the long term threat to the European economies is demographics. This threatens both their social programs and their GDP. They aren't having babies at anything close to the replacement rate. Long term economic growth depends upon labor, capital, and technology...