How an Economy Grows

An outstanding piece today in WSJ with the thoughts of Professor Robert Lucas of University of Chicago on how economies grow. He talks about the European model and how the carrying cost of their debt/governmental structures has detrimentally impacted their growth rates the past 40 years or so. The U.S. is close to the tipping point towards that model at present . Reduced output (or "work effort" as Lucas puts it) is not a good result.