EUROPE'S economy is lagging behind the US

Until before the 18th century, there were no major changes in the level of quality of life or in the level of human wealth. Before 1750, poverty was inherent in humans and there were no major phases of economic growth. What was common were plagues, famine and wars. It was only until the industrial revolution began around 1750 that people's average incomes began to show unprecedented growth. The industrial revolution, with its more efficient manufacturing processes and new technologies, began in Europe, so from that point on the continent began to move ahead of the rest of the world. Europe's economic progress allowed it to colonize territories in every corner of the Earth, and this made European countries even richer, so rich that even the GDP of European Union countries was similar to that of the United States. This trend continued throughout the middle of the 20th century. However, since 2008, European economies are lagging behind the United States. The U.S. economy is already 50% larger than that of all EU countries combined. So the question is: how is it possible that until a few decades ago Europe, which was an economic powerhouse, has been stagnating for so many years and is losing so much ground to the United States?

Some sources of interest:

- Bert Hubert (2022). Is Europe Just Not Good at Innovating?

- Financial Times (2023). Europe has fallen behind America and the gap is growing

- The Wall Street Journal (2023). Germany Is Dragging Down Europe’s Economy

Music:

#economicsnation #europe #unitedstates

[FernandoPerezh]

The European Union faces a challenge marked by limited innovation, lack of emerging enterprises, and a significant reliance on the United States across various domains. This dependence has led to an economic plateau, particularly when juxtaposed with China's proactive efforts to establish self-sufficiency, foster the emergence of novel tech giants, establish an independent digital ecosystem, and build a robust manufacturing sector. Nonetheless, it is a regrettable fact that Europe seems to have fallen behind in the race for technological dominance, notably in the realms of 5G and 6G, where the United States, China, and even South Korea have surged ahead.

[therealallpro]

My question is how much of that wealth is actually going to normal US citizens?

[girtsroze]

There is so much wrong with the methodology of this video...

[jvl]

The break in the average GDP per capita in the EU from the early 2000’s is mainly caused by Eastern European countries joining the EU.

[bendover]

Colonization didn't make Europe richer. Trade did, but not colonization.

[StepwaveMusic]

The video is called why yet you don't ever really explain anything other than basic statistics and the simple 'not enough innovation' directly related to not having enough unicorn companies. If you don't understand the problem yourself, don't make a video about it.

[michaelmatisse]

Answer: it is the EU. Before 2000 it was the EEC and no euro. Once EU and euro project started Europe went down

[martinskovpoulsen]

GDP is an antiquated way of measuring wealth. Just take a look at Ireland for instance. Ireland is one of the richest countries in Europe if measured by GDP, but anyone how's been to Ireland will know it is a poor society with no welfare, bad infrastructure and terrible health care. Just like the US.

[ahoraya]

In 2008, the UK was part of the EU, so the EU was 20 % biggee. At PPP still today the EU is bigger than the US

[noneunpaeseperneoliberisti]

Thanks, very instructive … and thanks for having provided some sources.

[ahoraya]

If u add the British companies, which were EU in 2008, there is less difference

[sandeeptomar]

USA be like : Follow me my backyard (Europe)

[maxstirner]

Political centralization leads to economic stagnation. Europe must get rid of EU.

[masa]

US has accumulated so much foreign debt in the last 10 years. Borrowing pushes the GDP. Not sure if it's that much better.

[henrikvl]

Due to the diversity of all these nation states in Europe, it is very unlikely you will get a lot of top 100 companies. The monolythic structure of the US economy and culture, will make it much more likely.

[MaximKachurovskiy]

Here in Europe few people need to hustle day and night just to afford a decent life for their family and there's no single market since every country erects regulatory limitations like electronic waste and packaging laws - so yes, we're fine but not growing much.

[donaldmaxie]

Europe has the advantage of the US paying for a lot of its defense requirements through NATO. Many countries don't even spend the 2% of GDP the NATO treaty calls for.

[THOMASDSOUSA-vtsj]

*U.N. SHOULD BE EXPANDED. FIVE COUNTRIES CANNOT TAKE DECISIONS FOR WHOLE WORLD.*

[kyawzaya]

Do you tell almost all American milittary expense is paid by all NATO countries , American can print out US dollar without limit as trillions and trillions in every year but Euro money cannot print as much as that amount ?

[lazybear]

There is no evidence European nations benefitted from 19th century imperialism. This has been studied and all the benefits went to small groups while the nations as a whole picked up the tab. Read serious economic history.