Manzi takes another look at the numbers. His bottom line:
However you slice it, the same observation holds true: European countries as a whole, and especially the major “social market” economies of Germany, France and Italy, have lost 20% – 30% of their share of global GDP versus the U.S.
Reihan defends Manzi:
To me, the evidence in favor of open, entrepreneurial economies is extremely strong and shouldn't be a partisan issue. U.S. Republicans haven't pursued the policies we need to strengthen ours, some European social democrats have pursued policies to strengthen theirs. It's depressing to watch this debate become a partisan squabble. The thing about Jim's essay is that he didn't frame it as a celebration of Republican policies. Rather, it was a thoughtful take on the upsides and downsides of social democracy, and why the United States needs a more balanced growth model. The hyperpartisanship of some critics blinds them to the central insights of the essay.
Justin Fox follows up:
I'd be interested in knowing if we maintained that lead in output per hour, since Western Europeans have chosen less work (and more vacation) over more pay, while Americans have done the opposite.
Yglesias makes related points.
The Dish 