Analysis: U.S. joins Europe in hiding from economic problems

01/3/2013 | Economist (free content), The

The compromise averting the "fiscal cliff" means the U.S. has embraced Europe's dysfunctional approach to urgent economic problems, failing to deal with them and "kicking the can down the road," according to The Economist. "America, which has the biggest structural budget deficit in the rich world bar Japan, will become an outlier in its failure to deal with the fiscal consequences of an ageing population," the magazine notes. "Its ageing is slower than Europe's but, as its debt piles up and business and consumer confidence is dampened, the eventual crunch will be more painful."

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Economist (free content), The

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