Slow growth is plaguing many European countries as they struggle to cut their spending and debts. France's GDP has fallen for two consecutive quarters, and Greece's international lenders say unemployment will remain above 20 percent for another three years.
"I actually think the political problems a number of European countries are experiencing are even more worrisome than the economic problems," Smith says. "The eurozone countries have, at least for the time being, allayed some of the concerns of financial markets and they don't want to stir things up and start another run-up of a financial crisis."
Smith says domestic political obstacles across Europe have gotten in the way of advances that could resolve some of the issues.
"As difficult as times are in the United States, the conditions here are a picnic," Smith says. "American economic performance has been quite remarkable in light of the difficulties that Europe is experiencing."
Information from the Associated Press was used in this report