A paper which explores the substantial differences between the economies in the United States and Italy, focusing on the auto industries.
The economies of the United States and Italy are in many ways similar to each other as both countries are large, industrialized and relatively wealthy nations. However, as this paper explores, there are substantial differences between the two, for the United States is a much wealthier country with a much larger economy. After providing an overview of economic conditions in each of these countries and a brief summary of their governmental systems, the paper examines one particular industry in each country ” the auto industry ” to see how structural differences in the two economies are played out in this one economic sphere.
“While the U.S. economy is fundamentally sound, this does not mean that there are not significant economic challenges as well, in particular the protectionist policies of other nations that use tariffs and other measures to allow their own manufacturers and workers to enjoy a relative advantage at home.
This should hardly be surprising to us given that all nations in the world employ some protectionist measures, including the United States. (For example, George W. Bush recently increased the protections for the domestic steel industry.)
Another one of the most significant structural problems that the U.S. economy faces in purely domestic terms is that over the past generation there has been an increasingly large gap between those who hold the best-paying, most prestigious jobs and those in other fields.”