World-System (1960-2000+) How Does the Steady-State Economy of the European Union Work?
The time plot above shows the Late 20th and Early 21st Century State Space plots for the European Union ( EU ) Region. The EU itself was not formed until the Maastricht Treaty (1992) . The 1980's were a turning point for both the Environmental-Unemployment (CO2-LU) and the Unemployment-GDP (LU-Q) Controllers. CO2 Emissions peak and declined until stabilized around 1995. At the same time around 1995, Unemployment peaked and was stabilized after 2000. The shock that hit the EU Countries in 1980 was Neoliberalism . The effect of EU formation was to stabilize the (CO2-LU) controller (stabilize environmental damage and Unemployment) and increase GDP in the (LU-Q) Controller. The effect of the Maastricht Treaty (1992) was also to put the EU on a path toward a Steady-State Economy . Commentators are confusing the approach of the Steady-State Economy with Economic Stagnation . How the Steady-State Economy woul...