Lots of people talk about the difference between the American and European economies: the different work ethics, the longer hours, our more flexible labor market.

Here, James Surowiecki explains how America and Europe have diverged in the last generation or two. And it's a pretty compelling argument.

It's not all about sloth or socialism. It is partly the way unions fit into the economic structure in Europe and the way they have influenced long-term policy-making.

The clearest difference is that more leisure has meant lower standards of living in Europe but that difference shows up in the lack of a service economy. Those service jobs are not well-paid but in the U.S. they provide employment for the unskilled.

In other words, Americans eat out more and pay people to clean their houses and mow their lawns, while Europeans do much more of that for themselves - in their leisure time.