USA vs. European economy?

Question

Even though its a bit unfair cause Europe is a continent and USA is a country.
I am asking for answers from people that know.
Which is working better?
I live in Europe and everyone thinks that if EURO > USD, it means that European economy must be better.
I personally have doubts that is correct.

I am looking for a very objective answer, not some teens just dropping by.

Answer 1

I will refer you to a recent syndicated column written by an American economist. Click on ---- Should We Copy Europe? - November 22, 2006 ----
http://www.gmu.edu/departments/economics/wew/articles.html
It is brief.

Also, I will refer you to this (out of Sweden):
http://www.timbro.com/euvsusa/
It is a long report, but the summary is short.

Both are written by admitted free market, limited government believers (as am I), so you can decide for yourself. They deal with longer trends, but things simply have not changed overnight. Currency value and economic strength do not have to be correlated.
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As for me, I can only go by the stats I see. (all current numbers) When I see very low population growth, unemployment rates that are generally higher than the US, and lower GDP rates than the US, I conclude that the overall US economy is more robust. There are a lot of available good paying jobs here, contrary to a lot of complaining I hear in the US. So if you are looking a job growth strength, then the US is currently better.
.

Answer 2

There is a wide difference between the strength of an economy and the strength of its currency. There is also a difference between a "currency that has a higher exchange rate" and "a strong currency". However, there are cases where you find that a currency is strong because the economy is strong and vice versa. A country may revalue/devalue its currency to achieve a particular economic target(s). It should however be noted that even a blanket analysis of both economies (USA and Europe) may not provide us with the right clue or reason(s) as to why the exchange rate of the EURO is higher than the USD. One superior recommendation that could guide and discipline our thinking when making conclusion on such subject matter is that; although both Europe and North America are developed in their own term, both may be pursuing policies that is contingent on the strength/exchange rate/value of their currencies. As a matter of policy concern, Europe may decide to devalue its currency to be at par exchange rate with the US, just as the US may decide to revalue its currency to be at par with that of the EURO zone. So the question of which economy is working better may be very difficult to answer. One reason is that, the word better is a relative term since an economy may be better in term of crime control and not in poverty reduction and/or employment generation or even control of inflation. All these tend to have economic effects on especially the poorer citizens of any nation. So please, don’t allow your mind to tell you anything but rather the economic rational behind either of the countries allowing their exchange rate to remain where they are today. Again the fact that the USD is recognized as an international denominator of world currencies seems to suggest that there is something peculiar to the US economy beyond being a super-power. But of course USA is not the only super-power, a greater part of the EU are.

Answer 3

It relies upon on who you're. in case you're invoice Gates, Warren Buffett, Lawrence Ellison, Paul Allen or a member of the Walton family individuals it is not substantial. it particularly is a similar financial device. a similar holds authentic for Theo and Karl Albrecht, Prince Alsaud, Ingvar Kamprad, Li Ka-shing, the Kwog brothers and Carlos narrow Helu. once you're a Windsor, the Euro financial device wins. once you're a Clinton or Rudy Giuliani and different customers quite than manufacturers, it particularly is the U. S. financial device. for a large variety of something human beings, it particularly is purely a rely of what trickles down. i'm pleased with the crumbs i've got caught. I merely get disillusioned whilst human beings attempt to make you think of the worldwide economies are issues they do no longer look to be.

Answer 4

Well my dear fellow you are not Euro until january 2007 :). In a few years it will be like that: China > USA > Europe. (I am not sure if this is bad thing...)

Answer 5

the US economy is still larger, even if u count the entire EU
in fact, its over double of it
FULL LIST (GDP): http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)