No economy exists in a bubble, and America is certainly not an exception to that rule. The widening fiscal issues in Europe are threatening to have an impact on the economic recovery in America. As Ruth Stroppiana, and economist in London, said about the situation in Europe, “It’ll take years of savage spending cuts, wage cuts and welfare-pension reform to eventually grow out of the debt situation.”
American businesses, which count on Europe as a major market, will certainly feel this downturn. During January and February of 2010, U.S. companies exported $36.5 billion of products to the EU nations. Should the economy continue on its downward spiral there, it will certainly have an impact on exports and on the world economy. Read more about these issues and their impact on the American economy.