Reducing interest rates and decreasing consumption will lead to an increase in the unemployment rate. What America is afraid of is not the interest rate but the unemployment rate, because unemployment will lead to no consumer purchasing power.
An economy, without consumer purchasing power, means death V (in M x V )
Among the top 2000 companies in the world, the US accounts for 611 companies, while Europe has only 370 companies. The market price of these US companies is 1.8 times higher than European companies, even though the total population of the US is up to 30 times smaller. %
America's GDP per capita is 1.65 times higher than the UK's, 2 times higher than the European Union's.
When a European receives a monthly salary, they can buy 2.4 iPhones, while an American's salary can buy nearly 6 iPhones.
Europe had its industrial revolution in 1760, while America was founded in 1776. It was not until 100 years later that America began the industrial revolution. However, America's GDP per capita in a short period of time, in just 10 years, doubled. Europe, so where is the crux of the problem..
We will learn this element in session 2, Macro class - topic:
"A measure of the strength of a country's currency"
