Euro Crisis

October 5, 2012 • Volume 22, Issue 35
Should the U.S. help ease Europe's economic woes?
By Christopher Hack

Introduction

A policeman in Madrid confronts a demonstrator (AFP/Getty Images/Pierre-Philippe Marcou)
A policeman in Madrid confronts a demonstrator on Sept. 25, as thousands of Spaniards protest tax increases and spending cuts imposed to help solve Spain's sovereign debt crisis. Europe's economic troubles already have hit U.S. exports and forced many American banks to trim overseas investments. But if the euro collapses, some analysts say the repercussions in the United States could be severe. (AFP/Getty Images/Pierre-Philippe Marcou)

Amid Europe's continuing economic troubles, riots erupted in several nations last month, notably Spain and Greece, as citizens protested radical government efforts to cut spending and raise taxes. Rising debt has damaged the euro currency and pushed many nations into deep recession, high unemployment and widespread poverty. Some experts say Europe's economic woes are holding back economic recovery in the United States by undermining consumer confidence, exports and investments and that the U.S. government should do more to help Europe fix its problems. Otherwise, they warn, a new global economic crisis on the scale of the 2008 crash could hit Europe, the United States and the rest of the world. Other experts argue, however, that it is not in the United States' interest to help rescue the European economy.

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