The Wall Street Journal has a good summary ($$) of the work of the 2004 Nobel economists, Finn Kydland and Edward Prescott.
I’ve heard of Edward Prescott before, he was the person who argued that the reason Europeans work less than Americans is not because of their ‘wonderful work environment’, but because their marginal tax rates are higher. In other words, the taxes are so high in Europe that Europeans don’t find it worth while to work anything more than ‘necessary’. Which explains why Europe has a much lower standard of living than the United States.
Also, another thing to note, Edward Prescott called Bush’s tax cuts “pretty small”. He argues taxes should have been cut even more.
If the 2004 Economics Nobel Prize Winner thinks President Bush’s tax cuts were too small, what do you think his opinion on Kerry’s tax policy will be? I can already guess.
Update: Another point of view is that Europe works less because of too much regulations.