Dani Rodrik: Europe should chart its own course in its quest to fix its productivity problem
Europe faces a productivity crisis. Over the past quarter-century, its labour productivity has risen only half as rapidly as that of the US, widening the gap between American and European incomes. Thanks to higher public expenditures, stronger labour-market institutions and superior safety nets, the benefits of European economic growth are better distributed. But without improved productivity, European economies and democracies will remain at risk.
