Europe’s economic problems are already affecting the U.S. economy. An expanding European crisis could affect the U.S. through the financial sector, reduced demand for U.S. exports, disruption of global supply chains, and political disruption in Europe. The U.S. can best help Europe by pursuing sound economic policies at home, starting with pulling back from the approaching fiscal cliff. The U.S. should also encourage European states to implement policies that foster free markets, lower their tax rates, and reform their unsustainable welfare systems.