Why Europe's Economy Is Falling Behind Everyone Else
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- Опубликовано: 2 авг 2022
- Europe, one of the wealthiest and most developed regions in the world has not been doing so well recently...
References:
www.politico.eu/article/europ...
www.lse.ac.uk/granthaminstitu...
www.researchgate.net/publicat...
sifted.eu/articles/problem-eu...
scholar.harvard.edu/files/agh...
ec.europa.eu/info/law/law-mak...
aei.pitt.edu/79713/1/Young.pdf
www.economist.com/briefing/20...
www.researchgate.net/figure/S...
www.macrotrends.net/stocks/ch....
www.macrotrends.net/stocks/ch....
www.macrotrends.net/stocks/ch...
www.macrotrends.net/stocks/ch....
www.macrotrends.net/stocks/ch...
www.mckinsey.com/featured-ins...
www.rand.org/blog/2017/11/why...
www.mckinsey.com/industries/t...
Hi everyone,
thank you for all the feedback - it's great to know that I somehow gained an audience of people who are able to critically evaluate the arguments I make. It genuinely makes me happy and I enjoy the discussions in the comment section, whether people agree with me or not.
I wanted to respond to a few things that seem to be the most contentious ones.
1.) I'm actually European myself. So this video is not a perspective of an ignorant American shitting on Europe, but more a self-criticism of our own flaws.
2.) A lot of people seem to be pointing out that Europe is more developed than most of the world, has a higher quality of life etc. Which is all true, but the argument is that Europe is BECOMING irrelevant, not that it already is irrelevant. It's about the direction it's heading - of course that it is doing better than most, but the point is that the long-term trend shows that it will not stay like this for much longer.
3.) This is not just my opinion - it's just what the data are showing and I'm not the only one pointing it out. See articles from Politico or The Economist in the video description, they provide further data on top of what I shared.
4.) The graphs in the video reference annual revenue, not market capitalization.
4.) Colonialism - obviously, it made Europe richer by stealing wealth from the rest of the world. And yes, it was horrible. But the point is that Europe was already richer than other regions in the first place which is what allowed it to go and colonize the rest of the world. While colonization started before the Industrial Revolution, it was much more limited and colonization of Africa for example happened mostly in the 1800s. Looking at Europe's wealth as ONLY a result of colonialism is a simplification and not an entirely accurate portrayal of reality.
You are 100% right, but Europeans are not yet ready to realize this. This is bad, because it is by realizing your own weaknesses that you can improve. China and Japan developed by comparing themselves to Europe and America, even Europe kicked off its own development by rediscovering its Roman past, it realized that it had regressed since then, stopped the Middle Ages and started the Renaissance.
You may not realize it, but by making this video, you have made it possible for many educated Europeans, who some may be the future leaders, to realize that Europe is lagging behind. This is a huge help for the future Europe, and for that I can't thank you more. You will get a lot of hate for this, but sooner or later, as with climate change, they will have to realize this.
If you want to go further, I suggest you also explore the geopolitical weakness of Europe. How European leaders have a very passive and almost submissive attitude:
- How the Spanish prime minister bowed to Morocco recently and accepted all their demands.
- How the German chancellors have been very passive in the face of Russian and Chinese aggression. They let Russia and China tie up the German economy without protest.
- How the same German leaders let Erdogan threaten European interests, out of fear of the Turkish diaspora.
There is a theme in Europe, the same theme that China had in their century of humiliation. We are old, rich and weak, in a world that is becoming increasingly hostile, where European history is easy for Africans and Asians to hate.
Our future is not bright and we must wake up quickly.
3:15 I don't know if it's relevant, but China has doubled its population in that 60-year span, so it could be related to the decline in Europe's Global share of Gdp
You have not mentioned Yandex, Ozon. Russian IT companies that grew immensely. Also Sber and Wildberries.
there are various other factors to consider. first of all, the collapse of production and nominal wealth are due to a very strong increase in the population in the other continents, now Asia and soon Africa. having said that, in relation to the population, the European citizen, a German, a Swiss, a Spaniard is much richer and lives better than anyone else in the world. in fact, the quality of life of a European compared to that of an American was not contemplated in the video. in the usa maybe the profit of big companies increases and from year to year, but this does not cancel the enormous social and economic problems of the USA. they will have the strongest army, the biggest economy, but what is life like? between weapons, racial problems, distribution of wealth, bad school system, gap between wealth and real wealth, (thanks to the breaking of the Bretton Woods), health care, infrastructure. moreover, the European economy has simply changed. it is based on small and medium-sized enterprises which are the best in the world in that particular highly specialized sector. they do not have a huge capitalization like apple or meta, but nobody knows how to do what they do as well or as well as they do: yact in italy, precision machinery in gaermania, aerospace in france, fashion, tourism, good living. on this we have focused in Europe: not on how much to produce, but on how to live, on living well, in safety, in peace, in a continent with a millenary, unique history, which will have dominated the world, but which now aims to live better. of the rest of the world.
No more imperialism means no more free lunch.
That's it. Everything else about fragmented market, aging demographics, blahs blahs blahs, is all cope and delusion.
Stop wasting your time and face reality. The moment Europe stopped extracting wealth from others, it starts to slide into irrelevance.
I think the real issue here is demography. Older people are more conservative, risk-adverse and value safety above all, not innovation or growth. And these people are ruling Europe. You can observe exactly the same decline with Japan. Same causes. China too will start to decline in 1 or 2 decades when they hit their demographic wall.
VOILA you get it. it's that simple.
Absolutly, there is no need to innovate when your just thinking in your pension and going on holidays to the beach.
Then why doesnt the same thing happen in the US?
@@RealErk a lot of immigration
@@lorddabian5030 europe also gets a lot of immigration since 2015
I think just comparing where the headquarters of the most successful companies are situated is barely and adequate analysis of the financial situation of the world. Don’t forget that countries like Germany are strong because of thousands of medium sized, family owned businesses that are sometimes very specialized and leaders in their field.
Yes, exactly. It's like saying that the country with the biggest population of ultra rich people is the wealthies, because if we go by these standards then Russia should be one of the best economies in the world. If Apple had main headquarters in Europe it wouldn't really change anything in our lives. In Poland small and medium businesses generate 50% of GDP and that value is even higher in the west and a lot of that comes from the IT industry. Europe is developed contient, there's not much space here for new infrastructre and huge projects, so the bulk of the money goes into improving people's lives. Proportion of middle class to rich class is very healthy, unlike in the rest of the world. The only downside is that as population gets richer it also stops reproducing for some reason and we see that all over the world.
It's a bit superficial, but it's nonetheless true: since 1990 Europe (and the Eurozone in particular) has been the slowest growing part of the global economy. Other wealthy countries such as the US, Canada, the UK, Australia , S Korea, Singapore, Norway, Iceland, Switzerland and New Zealand have all grown significantly faster. There are lots of theories as to why this might be so, but poor demographics, excessive regulation, high taxes and the inherent structural deficiencies of "partial economic union" all probably play a part. But yes, Europe is still wealthy and has lots of great companies; it's just that other countries are doing better. Japan isn't, though; but that's another story.
You are right but it is still an indication that we are on the decline at least on the economic front. Also the level of regulations depend heavily on the sector you are working in. The financial sector and the food industry are extremly regulated making it nearly impossible to achieve economic growth (and that now at a time where foodprices will explode because of the upcomming shortages). And if you regulate your finance sektor (like banking and insurance for example) it will get increasingly difficult for people to use this tools not just for themselfs but also their buisnesses. In other words if you want to start a buisness it just means more work for you (which to be honest isn't really a good incentive for entrepreneurship)
@@Theadalas its false in Israel people Getting Richer and reproduce.. that people stop to reproduce in Western countries is just because of progressive feminist and anti Family politics.
@@margaretjones777 Thing is; and people don’t realise this: the growth of the overall EU is both a blessing and a curse. On one hand, we are today very secure, Russia can not even take Ukraine in a regular war, so on that front, we won. But, there is a price.
Remember how we are a bunch of different countries? Well, we realise that this makes us very vulnerable, so we change if. However; this is a very difficult thing. Lots of change, lots of uncertainty. Not good for business in the short term. Weather our gamble pays off, will only be seen in multiple decades. If the EU unites further, we will rise again at a much higher pace. If not, we will stagnate, much like Japan, having eventually reached the greatest extend of our individual strength.
With makets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
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A huge problem Europe has is that it IS NOT producing a young generation. Having a family has dwindled in the West due to changing lifestyles which had produced quicker divorce rates, preference to stay single, leaving marriage too late, not wanting to get married, not having children...all leading to a decline in producing a younger generation that is needed to keep the growth and economy of the country stable and alive.
The main fundamental reason, as a European I say it, is economic decline.
We are overpopulated continent in which third world immigration keeps adding numbers, and younger generation rarely has the money to own a home and have kids. It's a privilege reserved for the upper class.
You have several good points. One thing though that I'll point out is that Europe's share of global GDP is not just shrinking because Europe sucks but because of other countries growing and taking up more of the global GDP share. And it's not just Europe. The share of global GDP by the USA was 40% in the 1960's and has fallen to 24% today.
Well, that's because the USA was the only developed country not destroyed in WW2. However, if you look at a graph from the 1970s onwards you see that the USA has accounted for a stable 25%, even increasing in recent times.
The US has had a stable share of GDP despite Asia growing. Europe sucks ass currently and if you're European you need to admit this so as you guys can catch up. Europe ain't competitive as it once was and as an Asian, I hope you will be again.
@@defintity_9951 hedonic factors anyone?
The USA has stayed at 25% for decades.
Europe is declining far, far faster than the United States
@@defintity_9951 by the middle of this century the majority of the world will be close to been developed
When you mention the big tech companies from the U.S. you should talk about how they are only now considering the drawbacks of large tech monopolies for the market. In europe, the regulators take a much stronger stance on this kind of unhealthy growth, which might also make this comparison between companies harder.
However the best and brightest strive to work at those companies because they lead the industry in both compensation and technological innovation. I can’t even think of a EU tech name that would be an eye catcher in your resume. It’s empirical yea but I’m in this field myself and when I look for progress most companies I come across as candidates are American. I don’t want it to be like that.
@@johniewalker4356 But from European perspective, the very same can be said about US companies. For example: what I totally do not get is Amazon. Crappy e-shop with UI from early 2010s, no propper customer support (i mean real "stone" contact point in my neighbour area). It is useless compared to vairety of specialised e-shops I use here in Europe. But if you compare those small shops to Amazon, it seems Amazon dominates.
No. IBM was also once considered dangerously close to a monopoly..
No company can stay on top forever.
@@johniewalker4356 Try ASML and Carl Zeiss-Jena.
US has all these chip companies (nvidia, intel, amd etc) but they dont do chips.. Chips are fabricated in either taiwan (TSMC) or korea (samsung). But neither TSMC nor samsung use their own equipment.. All the equipment they use in their factories are produced in netherlands (ASML) and germany (carl zeiss jena).
Be that it may be the fact is that there is no big European tech companies that can rival American or Asian ones. Japan alone while not that relevant in tech space today as they were decades prior still has 7 tech companies with annual revenue of over 70$ billions while Europe has not a single one.
"Europe seems more fragmented than it seems. It is really just 28 different markets rather than a single large one" - This is only true from the outside looking in. For those 28 different member states, the EU is a large single market with a great degree of market harmonisation which allows for almost unfettered fluidity of market access for EU companies and individuals.
The EU works great, the problem is that Europe has a rapidly aging demographic with a subsequent age profile which is much older than the US or China. Why is this significant? Because youth drives growth and innovation.
As a programmer working in Europe, I have to mention that the single market is not realized yet. Not only do we have to waste countless hours one regulations differing from one country to another ( often even between regions within countries) but there is an additional layer of language complexity.
Compared with China or the US that have single language software, European IT companies have to deal with endless translation issues.
@@ulyks hey im 16 and i also want to be a programmer and i am from europe. Can u tell me what programming language you use and ehat companies you have worked with? And how did you learn to code?
@@gaja9092 hey, I did my first coding on my calculator actually 😀 and then I did a professional bachelor in informatics. (It's easier than a regular bachelor) We learned Java, C# and Cobol back then and it's actually the ancient Cobol that led me to my job as a programmer currently. I work with the ABAP language, that is used in SAP, which is used by large companies.
@@ulyks alright thank you man. I am also now studying in a high school for informatics and then i wil go to college. I am a bit scared tho that i might not be able to learn coding well enough to be a programmer in the future because its a very hard subject, thats why i am frustrated right now a bit 😕
@@gaja9092 don't worry about programming. Just spend the time making the exercises and you will get the hang of it! Remember that when you do this as a job, it's OK to search online for solutions or ask a colleague for an opinion on how to solve a problem.
You got some good points! What I can also see is, that there are different mindsets in each country, especially when it comes to starting a business. So here in Austria or Germany, when you start a business and fail while doing so, you're stigmatized as a loser in our society. So many people just strive for a safe job, where they can't do anything wrong or get fired because the angst of getting stigmatized while trying is too high. I have the feeling, that in the US, you're almost getting celebrated while starting something new, and if you fail, you just try something else. "Yeah man, it didn't work, just try something else, no bummer!" But I have no idea how chinese mentality is, so if anyonce can clarify, that would be nice. Tldr.: People in the EU are really risk averse.
I'd say, in Asia, the Japanese are quite risk averse like Germans, but the other Asian cultures incl. China don't really care. They've been poor until just recently, and everyone just does everything they can to put food on the table. If that means working for salary, so be it. If that means running a business, so be it.
To say tech companies, as well Philips from Holland might make some things in South Korea, and yet LG and Samsung came along and you have Japan with brands like Sony and Panasonic.
What it is with China is that they are taking some products from countries well known to copy them and do improvements even some homage Rolex watches are more accurate than the real Rolex and when I say homage is from Chinese brands and not actually the actually Rolex knockoffs that African online venders sell for 30 thousand dollars.
Chinese people are highly entrepreneurial. They do business and don't care mostly about what others say and they do it ruthlessly and that's why there are a gajillion Chinese billionaire. That's also one reason why China's economy grew quickly when the people were allowed to make money by the CCP.
I sound like I am dissing the Chinese people but I am not, that's one thing I actually admire about them. I am originally from the Phillipines and lots of the richest families there are Chinese.
No the big difference of trying something else in europe vs usa is that european people only blame you if you started something new without properly preparing and informing yourself how you have to do it in order to not fail right at the beginning.
Americans are getting celebrated for everything and they dont think about how stupid some mistakes were
@ Chris Perkles
Its the same here in The Netherlands, plus they screw you over with your debts as well. And making it perfectly legal for your assets to be sold under value to keep you down. In the US its a bit easier to start over but their system is just a broken and corrupt. in Europe the EU/Euro itself are the biggest problem. European economies arent the same and the same applied for the curriences they were forced to trade in for that cancerous Euro. Due to the differences between economies, culture this bullshit once size fits idea doesnt work for any member state. The only ones who benefit of course are the multinational/transnational corporations, everybody else is fucked in this coporate facist union.
I agree the European market is too fragmented. In my opinion, also there is the linguistic factor which fragments your talent pool of people to hire for your company. In America you have 300 million people who speak the same language and in China 1 billion. A company can choose from a large pool of people that can communicate in the same language and share ideas. Europe may have a population of 700 million but it's people are brought up in different countries speaking different languages with slightly different cultures. In Europe, you may get a German company considering a French job applicant for a position in Spain. In America, if you have a Silicon Valley company hiring someone from Idaho to work in New York, but it's no problem. So not only is your market fragmented, so too is your talent pool. Another thing is English is the language used in America and because it is the international language America has access to a vast overseas as well as migrant talent pool from all over the world, not just UK, Canada, Australia but also from Asia and Africa. Look at the number of Indian talents in America tech companies.
So true, my brother is half french half finnish and speaks finnish. He still had to change his french name in order to get interviews in Finland. Europeans reluctantly tolerate the movement of talents, it does not welcome it.
There is no such thing as "international language"
@@vinay4181 You may be picky on the definition since there is no official international language but English is the lingua franca of the world. Most non-native speakers would want to choose English as their second language. It is also due to the soft power of American cultural imperialism. Look at the native English speakers. Most of them don't bother to learn a second language because they know the rest of world will bend backwards to learn English. Further, if a German company want to do business in Thailand, they would most likely be communicating in English.
@@hailyrizzo5428 not American imperialism but British influence
@@hailyrizzo5428 you're right
Europe has become too oriented on comfort and stability. Stability can't be maintained long term without adaptability.
No europe is growing steadily. China will soon face an aging population like europe but even worse due to less immigrants.
so you want european imperialism back... good to know
@@felixmustermann790 based
@@felixmustermann790 yes. Hell of a lot better than Chinese imperialism.
@@donovan4105 this has gotta be a joke right?
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As an individual living in the USA or China, you're so screwed if you loose your job or your house. I'm happy I live in Europe. GDP growth isn't everything.
Europe is consolidating its economic position in order to have its inhabitants live happily, and that may come at a price, but it brings the kind of individual stability that fosters happiness.
and demography look at France who got a generous "politique familial " and an healthy demography that will help their solidarity social net
I agree with you. Being a top 5 economy is not a good indicator of what the standard of living is like for an average person. Someone living in a large Chinese city may have all the appliances in their home as an average Westerner, but they have to work twice as many hours to buy them, while people in rural China's lives are pretty much unchanged in the last 100 years. Even more so in India. A handful of billionaires, while millions live in abject poverty with no running water.
And then there's the US, where a routine operation in hospital can put a middle-class family out on the street and stuck in debt for the rest of their lives.
In Europe, even the poorest are relatively comfortable. Why can't we celebrate living in our baroque apartments in tree-lined avenues, enjoying our hard-won worker's rights and pensions? Why is the idea of everyone being squashed into futuristic dystopian megacities seen as the ultimate vision of progress?
"As an individual living in the USA or China, you're so screwed if you loose your job or your house"
- No dude it depends on your income vs your total financial commitment. It is all relative and so please don't exaggerate.
"I'm happy I live in Europe. GDP growth isn't everything"
- That's a loser talking
"Europe is consolidating its economic position in order to have its inhabitants live happily"
- It actually means Europeans are losing their competitiveness while living happily from their old wealth which is slowly depleting like a frog in a tin can with a burning fire underneath slowly boiling the happy frog away.
"and that may come at a price, but it brings the kind of individual stability that fosters happiness"
-What are you smoking????????????
@@user-jt3zv2jc7u Now I know why Europe is declining, Europeans are happy living like a slacker.
@@bldomain he’s smoking his EU pension. Must be good shit.
Europe is becoming "irrelevant" if by "relevance" you just mean beating records of the money a single company can get. All in all, Europe is a healthier continent for the common mortal, and most Europeans live better in the "irrelevant" Europe than their ancestors 4 generations ago ever did, during the height of European "power". Back then people lived worse than in prehistory, with all those factory accidents and no health insurance whatsoever. Nokia may have experienced a downfall, but it's still better to live in a Finland "in crisis" than in the outskirts of San Francisco our lives became to depend upon.
Nobody’s talking about the past though. I mean it’s true that europe has struggle a lot to innovate. Most of the recent technologies are created either in the us or Asia. Since 2008 europe economic growth has struggled a lot.
He’s not saying europe is a bad place to live at all
Idk where you lived but in 4 generation you go back to thw roaring twenty wich is quite good time until crime syndicate become omnipresent
@@sotch2271 i mean if imma talk about myself 1920's are 2 generations away from me lol. my grandfather was born in 1923
For how long? Do you really think this quality of life is sustainable for decades to come?
Economy always has a direct link with standards of living if europe can't adopt in the next 3-4 decades , then standard of living will also vanish away
as a few people have mentioned, Europe might not grow as economically, but consumers and workers are way better off.
In a lot of countries in Europe, you can actually live decently on a minimum wage (and a full-time job), good luck with that in big parts of the USA or the east.
your rights to stuff like sick leave are way better.
it is really only top rich that benefit most from the companies having these huge profits, while the rest of us benefit from having proper rights, protections and wages as in most of europe
This won’t last. Europe is aging fast and losing money fast.
Will that last forever if companies have to start laying off people, slowing their wage growth, opening in less markets, etc? You're against the clock and these relaxing easy lifestyle won't last forever. Hungrier dogs will catch you and it will be much harder to get back to the top of the pack then it was before.
This is unsustainable. Just look at the amount of migrants that come for what the welfare states provide.
bro the US just exports debt and prints money to buy goods manufactured in other countries, they don't have any indurstry, just wait until the world's reserve currency changes from USD, the US will go to the dumpster in minutes
You can’t have everything , as European I like to grow and thrive but in Europe isn’t possible and then you became lazy and you live the life .
While the number of the European companies in the companies might decline, this doesn't mean, that Europe is becoming irrelevant. Nowadays the European economy isn't centered around a few rich companies, but is instead spread between many smaller companies. In first glance Europe might become irrelevant, but instead there market just changed. Nowadays Europe is increasingly selling things (like manufacturing machines) used to produce products instead of the goods themselves. Without those machines etc. many countries would've problems to produce.
That is the problem, because if europe was economically relevant it would sell more products instead of just being a supplier and helping others sell more
What this video failed to mention was which sector was the biggest contributor to the EUROPEAN ECONOMY for each country. For example, France's largest sector is TOURISM. But of course they overlooked it because tech and stock markets are the only true measure of economic relevance, right? Not to mention Europe has some of the biggest "consumers". I mean, spenders are NOT relevant to the economy too, right? If the entire continent banned the use of a certain product, they certainly have some "economic relevance" for sure. The latter needs some more definition because the way I see it, the creators just saw it their way.
If we are going "strictly" with the logic of this video then, the rest of the economic regions in the world are economically irrelevant too. Because they measured it in terms of how a certain region controls much of a particular industry (like Tech for example). And let's be honest, the only economically relevant countries in the world are the US and China.
Oops. I forgot about Russia though. They have no big companies in Forbes 100 and yet you can argue that they are "economically relevant" at least for a couple more years.
@@savagebuck India's pharmacy and It industry is also big.
@SANJAY NAIR ASML makes the best semiconductors' machinery BEST for TSMC and Nikon and canon lost high-end battle .ASML has a market cap of $220.70 Billion .
A small correction: At 2:35, Thailand was never really colonised
Just slavishly obedient to it's overbearing.......
""""""""""""""""ALLIES""""""""""""""
@@njkauto2394 not obedient but diplomatic. A good ruler knows conflict should always be the last option.
Somehow Malaysia is left out
@@njkauto2394 u jealous
Europeans are confusing stagnation with "stability."
stability leads to stagnation (ie USSR)
@@saiyedakhtar3931
And eventual collapse.
@@saiyedakhtar3931 let them go to stagnation(USSR) most of the European in comment section are just ignorant and hateful against usa and capitalism saying same stuff that i rather have healthcare than working but also not talking about where the money for healthcare and benefits come from.
SAP is not the biggest European tech company, ASML is and it is growing rapidly.
230.66% growth in 5 years is kinda average don't ya think?
I think author meant tech company in traditional sense, as a software company. ASML just builds machines, it's an engineering company. SAP is biggest pure tech company
@@Robis9267 engineering is tech 💀
What about ARM? One of the most important players in the chip industry, ditched London listing in favour of listing on the NYSE instead. The reason for this were of regulatory concerns provided by the FCA regarding "related party transactions", where UK publicly listed companies must gain investor approval for any transactions with related parties. Thus, FCAs inflexible approach to cater to ARM's need which would be a massive step forward for tech to be seen as legitimate in the UK/Europe is indicative of too much regulatory stubbornness of European nations as a whole.
Things can change fast in either direction. In the early 00s Germany was called the sick man of Europe. A few years later the German economy was booming like never before. Right now we're facing a demographic crisis in part due to low wages, increasing rents and COL. But no-one knows what will happen when the baby boomers are gone and free up their jobs and houses.
So are wages getting low everywhere in Europe right now?
@@paumasabad8059 Compared to the US most professional and managerial jobs pay lower wages in the US. Only minimum wage and near-minimum wage jobs in Europe pay better salaries compared to the US.
@@paumasabad8059 Difficult to say. Observing Germany it seems like COL is rising quickly. Wages on the lower end seem to be rising as well. Better paying jobs don’t seem to pay higher wages (yet?). If I could tell the future I’d be rich.
Didnt i saw "Europe is becoming economically irrelevant" in 1950, in 1975 and again in 1990 and in 2000?
How old are you though
@@XEnzo68 Old enough to know how to think for yourself. You can go to an archive and read through old magazines there, they often contain stuff like this, pure thirst for sensation...
@@AGWittmann Sure, but the point about tech companies is true and you can't hide from it. There's nothing even remotely close to a Silicon Valley in Europe and they are lagging so far behind on tech companies which si clearly the future
@@AGWittmann it was a joke haha but thanks for the tip
@@zzXertz the russian ukrain war prove it wrong. Tech is not everything, china has to relate on the "old tech" russia cause of energy dependance. If tech was everything, a country like Saoudi arabia will be in the middle ages, or they have the biggest company in the world and are from the 5 most spending in military. Tech is not the answer, energy is.
And from a pure tech point of view, for me USA is already irrevelant in tech developpement, as for my concern, not a thing in my house is american but my PC, whereas in the early 2000's, like 80% of my stuff was from the us. The only leading tech countries now are from asia, south Korea and china leading. That's all. Even in EV, where tesla hit the sky in 2012, are now hitting the ground in battery innovation compare to the chinese. They are even currently buying BYD tech for their next Teslas.
You make some excellent points. A bit of nuance though: there's wild divergence in Europe concerning innovation and entrepreneurship. Some European countries (e.g. Sweden, Netherlands) still innovate while others don't. France for example is a terrible country to start or grow a business, hiring a bad employee might lead to bankruptcy for small businesses in France.
I dont have a big problem that Europa is becoming irrelevent in the future!Just enjoy what this great Europa can provide us!Endless good food and wine great nature with clean water and air beautyfull landscaps and historycle Citys and the ability to produce everyting we need for urself if we want!Cars airplans machines!So the future will be even better then ever for Europa!We like cheap stuff from Asia but we could also live without it in the longrun!We have bad demographics but china is even worse and they are mostly still poor,thats a bad combination!And then we are geographicaly close to Africa,so we could ease the Demographic problem with some imigration
@@brunoheggli2888 Yeah, it is a big deal. It means that countries that aren't ideologically aligned with us might crush us, or at least hurt us. That's quite a problem.
@@MovieRiotHD There is no way to crush us!You only can crush a nations who need you!We need nobody!We dont need china and Russia to!They need us much more then we need them!Its good to not being a superpower in the future,so we can profit from the rivalery of the superpowers!
@@brunoheggli2888 Except when those other superpowers have different ideas then we have for the world. Look at China in Africa. They have global ambition for softpower.
@@MovieRiotHD Its irrelevent what others have for ideas,we just go ur way!We dont need them!If they trie to put us under pressure we just forcing ur industry to be less dependent from them!And we can also making desitions on a personal level!For example i am willing to pay more for a car that is produced in the free world,dosent matter from Japan korea the US or Europa!I will never buy a car from China!
Europe is not business friendly, too many regulations and expensive labour.
Yeah, to hell with regulations. Lets just allow Corporations to whatever they want and then complain later online how Corpos are getting richer while poor gets poorer. Nobody wants to be Republic of Samsung like Korea. EU might do a lot of things wrong but regulating the hell out of these bastards aint it.
And Labor in US is much more expensive. Thats why you almost never see Companies moving to US.
The level of regulations depend heavily on the sector you are working in. The financial sector and the food industry are extremly regulated making it nearly impossible to achieve economic growth (and that now at a time where foodprices will explode because of the upcomming shortages). And if you regulate your finance sektor (like banking and insurance for example) it will get increasingly difficult for people to use this tools not just for themselfs but also their buisnesses. In other words if you want to start a buisness it just means more work for you (which to be honest isn't really a good incentive for entrepreneurship)
The lack of big companies is not a problem for Europe. Big companies are rather an economic hindrance than an advantage. Look, for example, at Samsung: too big to fail, too big to even think to touch it. South Korean giants become a hindrance to the South Korean economy and make a life of an average South Korean a misery. Japan has already experienced this, and China is already falling into the middle-income crisis. Chinese rails and chip giants like SMIC live on government subsidies. Europe doesn't need Walmart or Uber. I would rather support local businesses and quality instead. The real problem for Europe has been austerity caused by public debt, and the debt comes from policies that supported unreasonable subsidies, something China is doing these days. In order for the economy to grow, you need to spend money, and this was harder to do after the economic and debt crisis started in 2008.
Countries seems to repeat the same errors again and again
You seem to miss that Samsung isnt the only chaebol in Korea that is huge. You have lots of them like Hyundai, LG, Lotte, SK, etc... and Korea also has one of the largest startup environments in the world. The case of Korea is different with Japan becahse if the chaebols have run their course, they could have ended up like Japan and China way earlier in the 00s. But no, these Korean companies, unlike Japanese companies, were not complacent in their market dominance but rather, spend a huge chunk of income on R&D for future development. If you see closely, Korea spends the heaviest on per capita R&D spending and its companies are some of the largest spenders for R&D. This is why the opposite is happening to Korea as these "chaebols too big to fail and will fail soon" have been around since after the 1997 IMF Crisis but have never come to fruition because of lessons learned in the crisis by both the Korean govt and the chaebols. Europe, much like Japan, has been complacent and thus, its R&D spending on future industries before that are staples now are minimal resulting in its inability to compete with Asian countries like Korea or China.
@@SeoWoojin55 I was talking about the South Korean *giants* , and Samsung was just one example. These companies are too big to fail, and that's why they're untouchable. That doesn't mean these companies are unsuccessful and that they're going to fail. On the other hand, Europe doesn't need big companies, because big companies are coming to Europe. Everyone wants to participate in the European market because of its size. Additionally, Europe has the political power to regulate the market and these companies need to comply. That's the power only the US has, besides Europe. The point is, every company is dependent on the global supply chain, and Samsung couldn't work without European components. We are talking here about big conglomerates, and having them is not necessarily beneficial to the economy. This doesn't benefit the competition.
Still won't change that fact Europe is in decline lose to America and Asia to compete
@@Stefan-wj6mq right now Europe economy still struggling meanwhile Asia and America already start growing . Just admit it Europe economy is like museum😂
this is a very American perspective. In Europe we don't have big tech companies because they're virtually illegal, for undermining the principles of a competitive free market. This might be prejudicial in our global image, but it's clearly beneficial for our economies and henceforth us.
This. This video is such an American take.
America Tech companies are managed by Indians. CEO of Google, Microsoft, Adobe, Twitter, IBM, Deloitte, Chanel, Barclays, GAP, VMWare, Wayfair, Diageo, Vimeo, Palo Alto Networks, Micron, Panera Bread, Nutanix, QuantumScape and OnlyFans were all born and raised in India and graduated from Indian universities.
Their median household income in the US is nearly double of white household income and they are also the most college educated community in the US.
@@DS-vx3wf Lmao alot of these Indians are not from India. They are Americans with American masters or bachelors degree. US is open to allow people of color and others to come and show talent. That doesn't mean Indians run this country. Only Indians in India are so obsessed with claiming these CEOs as their own when these Indians didnt even think a half a second to give up their Indian passport. I am Indian-American, I can say for a fact that my white colleagues are so much smarter most of these Indians. Just cuz 15-20 companies are run by Indian-American CEO its small percentage of the other 1000 run by non-Indian.
@@viharsarok But... he is European. It can't be a American take.
Whenever you point out how laughable and pathetic Europe has become, the Europeans simply look away and parrot the line "this is ignorant, only Americans believe this. Our lives are actually great and are always going to be", as they steep further and further into decline. It's an almost Biblical tale of arrogance til the end, that I'm sure future descendants will read about as a cautionary tale. I know you're a European so you believe we're at the end of history or some unbelievably dense bullshit that no one in their right mind could possibly think, but we will in fact have descendants in a different culture of ours and borders will change. The fact that cultures and borders will not remain static until the end of time needs to be explained to a European is astounding.
Just to put it in perspective for anyone that says Europe is becoming irrelevant . I am a Bulgarian living in Germany earning 2.3 k a month while studying culinary arts . I can only imagine what a stable German lives like here . To basically explain it further . I can happily say 1.5 k a month is getting put in my savings . Europe isn’t getting worst . It’s just getting better quietely. And that is through out the whole continent .
Good luck in the winter b0Z0s
@@AbuBased731 winter won’t be as bad as the fall of the American empires economy bozo
@@AbuBased731 But There are no Real Winters Here because of climate change haha
@@Cloud-xu5zn 🧢
Where it sounds uncomfortable, frugality isn't a bad way to live individually. Although it's harmful for the economy if too many people live that way.
The main reasons are demographic, as pointed out and detailed by some of the members. The other main reason is the fragmentation within a fragmented system. If Europe wants to stay relevant they need the same set of rules everywhere, obviously there should still be certain laws that differ from country to country but to a much smaller degree than now.
Be that as it may. The real problem that Europeans will never admit until the day they die is that Europeans are in denial about the reality of the world, because they still have the same colonial arrogance of old that says they can't lose because they're the master white race and will always be the uncontested greatest civilization in all of human history. If all Europeans lose everything, they'll find a way to interpret it as not just a good thing but the greatest thing ever, and that the reason this greatest thing ever happened to them is proof they're the greatest civilization in history and should expect nothing less.
Europeans and any people on the planet have dealt with far more than what Europe is dealing with now, and there are countless creative solutions to any of these mild problems. But Europeans will embark upon none of them, because their sick pride has rotted their minds too much for them to even be able to be capable of admitting anything that doesn't flatter them or their preexisting notion of inherent superiority. They will devote all their energy to dehumanizing and dismissing those who try to straighten their minds out on the subject and will soak in the glory of their past achievements until they've dissolved to mush.
But why European countries always comes at top in most important parameters like quality of life and happiness index
Because these rankings were made by Europeans themselves lol.
It's easier to be happy when you are rich. Sure, money doesn't guarantee happiness but it solves a lot of problems that cause misery
@@tigerheron4772 😂😂😂
From the money earned through exploitation of africa, asia and south america during colonial times
In Italy we have the lowest unemployment rate ever
If we are being honest, then Europe is finally getting to it's actual place. We are small by land mass and not really that big in population compared to China or India. Also, endless growth is not sustainable anyway. And since Europe manages to keep it's standard of living stable anyway, I don't really care if we don't grow as much as others.
Limitless growth is the ideology of a cancer cell.
I mean, land mass is irrelevant, Europe has a much larger population than the US, and should be doing better.
thats true, but is it guaranteed that europe can manage to keep its standard of living in the future?
@@derineaboned6775 it is not that for the 99 % it has gone that well in the USA.
It seems like Europe is managing to keep its standard of living stable at the moment but at some point there will be no money to be made in Europe when the GDP keeps shrinking. We will be poor and then the living standard will be very very poor.
@@Hastas the balancing.
I see a lot of Europeans not really caring much about their economies slowing, lack of innovation, slowing birth rates, etc.
They say (and I agree) that's they are happy, good policies to help people have better lives, and more to life than economic growth.
But I do wonder if all the social policies and more and the quality of life they expect is sustainable long term. Is it at all sustainable without growth? Isnt thag what many systems are based off? I don't see it being all sunshine and roses forever. Being pessimistic here. I'm will fully admit I'm ignorant on much of this.
Times like this really make me wish I had a time machine to see what will happen in the future. It's history in the making. And based off how the 2020s have been going so far this is going to be quite the ride.
You make some good points regarding the reasons. A couple of additions - language and cultural differences make it harder for companies to do business across the continent and also hamper concentration/movement of talent (e.g. compared to the US where everyone who wants to work in big tech migrates to the west coast). There is free movement of people, but people far less readily to relocate country in Europe than they relocate state in the US. Also, a big contributor to Europe's historical innovation was the fact that it was so divided and there was a lot of competition and frequent small sale wars between states which fueled military innovation and even other forms (e.g. by monarchs and nobles sponsoring science and arts to "flex" on their neighbours). Now they are in a strange middle ground where they don't get the benefit of hostile competition, but also don't get the benefit of a single unified country and market. Not to mention that WW1 and WW2 took a massive toll on Europe both in terms of economy and population.
Also, its not like every European country is developed, eastern and balkan aren't that developed as the other european countries.
@@saccount-z3 yeah
Not every American country is developed either, Central America is relatively poor
There are African countries richer than many balkan and some other countries in Eastern Europe actually
@@banzaaiiiii please name them
@@brb4903 i.redd.it/rlkc1ns3ej181.png
You are literally praising large US companies having monopoly whereas in Europe there are middle size companies which rule the market!
where? 😆
@@crimsonlightbinder The whole world…That’s why EU has positive trade balance with USA…USA despite of having a number of big corporates produces less than they consume…!
@@crimsonlightbinder Idk how about you fucking search it?
The EU needs to create a regulation the makes companies more innovative.
That's the EU specialty. Making regulations.
Regulations will never lead to innovation. It's free markets and deregulation that provides opportunities for innovation.
@@mogensgallardo3288 In all such examples, there is some sort of government regulation that favors incumbent firms in an industry. For example, Western Electric had a monopoly on telecommunication equipment in the early 20th century due favorable rules surrounding patent protections that were enforced by the government. Again it was government regulations that led to market consolidation.
There's more than 28 markets (nation states) in Europe. The EU has 28 member states, but Europe, as a continent, has 49 countries (including Georgia, Armenia, and Azerbaijan).
Actually only georgia is in Europe out of these, while Armenia is culturally European.
@@temporelucemtenebris5313 And a portion of Kazakhstan is in Europe
@@temporelucemtenebris5313 2:33 this map says otherwise.
@@penetrationskommentar877 that's EU map not Europes map
@@abobanger9054 the video is really full of misinformation lol
There are so many flaws in this assessment and very selective statements and numbers used. Comparing a few companies to each other and concluding that Europe is not competitive is really silly and nonsensical.
Completely agree
Right this channel doing it on all videos
Examples?
Next century is Asian century believe it or not .
@@dontrememberit6834 chinas population is imploding, Japan has been stagnant for 30 years and India is a mess and dirt poor and they will never be a rich nation. The next century is still going to be the USA with the rest of the world going to Africa to exploit them for cheap labour and natural resources.
If you had stocks and shares in both European and US companies, you'd know that generally European stocks have been holding up much better and been far more stable over the past 12 months or so, than US stocks. Also Europe's economy grew over the last quarter, unlike the US economy... that is the issue with a lot of your studies - many are years old and the first two I clicked on date back to 2015 and 2019... the rand one is from 2017...and you are making the same mistake as the economist article - you are judging the health of economies by their number of companies with large market capitalisations - that's not a conclusive analysis of an economy... London doesn't have the big tech companies you mentioned and is still the global financial capital of the world. Switzerland has a relatively low GDP and few companies with large market capitalisations like the big tech companies, but is still one of the world's strongest economies, possibly stronger the America's depending on how you measure. An economy is not just measured by GDP output (on that measure, the US is going to fall way behind China by 2030) - it is also measured by social influence, cultural influence, legal influence and importance of location - London is the central economic hub between US, Europe and the World, and New York is the only American city that competes with it as a financial centre (in terms of stock market performance and GDP figures) - but what no American city can compete with London in is economic, political, legal, cultural and social influence. No American city gets the annual tourist figures that London or Paris gets (these cities are usually in the top 3 in the world each year)... Also what about what's happening now and what's happened over the past couple of years? Europe is and will remain an economic powerhouse for the foreseeable future. Look at it this way in a hypothetical scenario where American tech gets even more dominant - suppose America has the top 10 biggest tech companies which are also the 10 largest companies in the world by market capitalisation... now if Europe can access and benefit from all the goods and services produced by those 10 powerhouse tech companies, then what extra advantage is America's economy getting from those 10 companies, over and above Europe? In a free market they are both benefitting from the output. So having the headquarters and financial accounts of those companies in America provides what economic advantage exactly? It's more about how those companies are taxed and in turn how those taxes are used... if America's economy is so strong, why is life expectancy several years lower than in Europe? Shouldn't a more advanced economy be able to provide more widespread healthcare to its citizens and provide healthier foods and lifestyles? Why is American household electrical supply lower power (lower voltage) than European household supply? Why are most American properties made of flimsier materials and much worse quality than most European properties? If American tech is so strong, why does most American CCTV look so pixelated and fuzzy, and most European CCTV footage looks crystal clear? Why is America's high-speed rail infrastructure so undeveloped compared to regions like Japan, China and Europe which all have many thousands of Kilometres of high speed rail compared to America which has less than 1000 kilometres? It's one thing having a strong economy on the balance sheet and another thing having a strong economy that is tangible and can be seen with the eyes.
its saying europe is becoming econmically irrelevant not becoming ecomically unstable,
Nyc is the global financial capital. Only thing London is good for is money laundering of Russian and corrupt money. Also most European banks have been beaten badly by the American banks. US banks control the majority of the IB market. Europe has largely be one irrelevant since no one wants to deal with the immense regulation.
The last major tech company was wirecard and look what happened there
@@gogulsaji6933 safe net is always relevant
The US has problems but nothing terminal like Europe. Using short term comparisons like Covid recovery are irrelevant. The US actually still retains an entrepreneurial culture and will come out the other side. The US rail infrastructure is actually better and you probably think Im an idiot but it really is! The US has the cheapest and fastest rail network in the world it just doesn't translate to passenger rail unfortunately. I don't think Europe is going to fail but it will become less relevant. My wife's family is all trying to move to the US from France. The benefits off healthcare and living standards have stagnated and arent worth it anymore.
@@grammoore good to knowbut I Heard that healthcare in US is albo failing.
Son, Im portuguese. This country is in a stagnation-recession-small growth cycle since 1755.
This is not news for us
Look at that. A duck thinking he's part of the geese
Speaking from the perspective of a student living in Germany, it is my observation that being ambitious is not considered cool in Europe. This stigma around ambition contributes directly to the lack of innovative companies in innovative sectors.
This is only my observation and hypothesis, can someone verify this ?
Lol, no. Ambitions are valued in Europe but so are things like food safety and equality. Americans leave losers behind and look only at the winners. Hence the main theme of this video of comparing the biggest companies, not average ones.
@@viharsarok totally wrong. The greatest success stories of INDIVIDUALS are in the US. Europe has no ambition
@@saiyedakhtar3931 Again: ambitions are valued in Europe but not to the exclusion of everything else like in America. So America has the greatest success stories and the greatest failure stories but it's American to ignore the latter and act like only the former is important.
@@viharsarok not from what I've heard and observed. Wealth is frowned upon in Europe and people generally have a negative attitude towards the wealthy. This attitude is built into the regulatory infrastructure. It takes ages to get approvals for anything. If something is new or untried the default answer is: NO. Stability has its virtues but at the cost of innovation. The fact that you are expressing your opnion on an American invented platform is testimony to that. Looking at the success stories is the point: Steve Jobs, Bill Gates, Jeff Bezos, Mark Zuckerberg, Elon Musk just to name just a few. Elon Musk alone is worth the inequality of the American system. He single handedly started revolutions many industries. The whole of Europe has to get together to do a few Sattilite launches a year. Space X does is so routinely that it's almost like watching a someone drive a taxi.
@@saiyedakhtar3931 I was born and raised in Europe so trust me wealth is admired there just like everywhere else in the world. Regulations are more conservative to protect average citizens. America is definitely a better place for risk takers but they are not all winners, you just ignore the losers. America focuses on raising the maximum whereas Europe focuses on raising the average, if you will.
Im from Italy and here things are not that bad as it seems, at least for me, but tourism here is still great , im from Rome and even with the many problems we face we r still doing fine, i think we italians complain a lot but in hardest situation we give our best.
That's the problem your economy is completely reliant on American citizens, in particular, coming to your country to see old buildings and to eat expensive food. Looking at the statistics unemployment in Italy is dangerous. Italy hasn't produced a single innovative international business in modern history. The richest people in your country don't build planes or run international banks. They sell overpriced t-shirts with Italian names on it. This is unsustainable and italy is forgotten when discussing future innovation. The economy is dying.
@@jjohnson649 ? No it's other Europeans who form the bulk of Italy tourism
@@homelander4926 American citizens spend more money when traveling abroad and they have more purchasing power. The average American makes a lot more than the average european
Dolce Vita
@@homelander4926 Most tourists here are from Spain, and USA.
I think this video has an important flaw: it simply evaluates the economic "relevance" of a country or region in terms of the market valuation and profits of a few multinationals. But that has nothing to do (and in fact sometimes goes in opposite direction) with the gugh-value goods actually produced and exported, the import/export balance or the quality of life. Actually, before COVID Germany was the biggest exporter of goods in the world, which is something quite tangible and of intrinsic value, not depending on the momentary market valuation of some obscure multinational as decided by a few elite inverstors that rule the market. OK, so the US has a few monopolies and multinationals (some of them arguably extremely overvalued like Tesla), but Germany has dozens of specialized engeneering companies that manufacture highly valuable machinery that is used througout the world and produce goods with intrinsic value. Please explain to me how is that compatible with the thesis defended in the video. And by the way, I don't know in which sense the fact that the biggest bank of a country increases its revenue by a gazillion is good for the country itself. Actually, a smaller groth looks far more sustainable and reasonable in an equal and fair society. But then again, the US is a much more violent and unfar country compared with the EU.
@Jeffrey Dick depending on the year Germany has been the top producer of export goods in the world even in absolute terms. Regardless if it is first, second or third, Germany is much smaller both in size and population, so proportionally it is the most efficient exporter. And that is without taking into account the other members of the EU. All in all the EU has a much better quality of life in all essential aspects of life, including the fact that the EU society is much much less violent than the US society (this is difficult to understand for the americans that never lived aborad). Regarding "trading" it is evidently and economic issue, the companies that trade internationally do it for economic reasons, and the fact that you include your self in an inclusive "for us", as if the US society was homogeneous entity or you had any saying in this is laughable.
@Jeffrey Dick thank you for your insights. that was kind of interesting.
The Chinese and Indians can copy and make Germany's machines domestically. Look how they gutted German pharmaceutical and solar panel manufacturing. They can't copy and make US tech domestically.
bro the europe not even a lifetime ago held on to 60% + of the world in bondage
@Jeffrey Dick Socialism ? Where the fuck did you find that in Europe lmfao ?
US: megacorp with 100.000 employees
EU: 1000 companies with 1000 employees each
Is there even 1000 companies in the EU. I'm talking corporations not mom and pop shops.
@@jamesgavin6171 toy are kidding right? with 1000 employees? 100.000s.
You forgot to mention ASML. That is probably the most important European tech company. Without it there wouldn't be a tech industry and semiconductor manufacturing in Asia.
ASML is a US monopoly and was initially a US military research project in which a number of Dutch scientists working for Philips participated in.
@@kariminalo979 I work for ASML. It was founded by ASM international (Dutch company) and Philips (also Dutch). The company is based in Veldhoven, Netherlands. It has a US office, but it is not a US company.
@@alexandrunechifor true but tsc earns more then asml ever though you got complete monopoly in cheap manufacturing devices
@@hj2711 tsmc is a manufacturing company and asml is an equipment supplier for chip manufacturing. The manufacturing devices are not cheap. They can cost more than 150 million per unit.
TSMC is a much larger company but ASML might actually be more profitable.
Mentioning the history part. Europe made sure that none of their colonies get industrially developed. For ex. The whole Indian subcontinent could not make a single Train engine because the British made restrictions that it can be only be manufactured in Britain. Facts like these slowed the progress of most colonies and Europe got richer.
Bullshit. There are Alstom factories in India. A French company.
Idk for India, but African industries were big until 1960s, after that it fallen appart.
@@mrsupremegascon Lol. What African industries? Haha
@@freewal I see reading is a problem. They talked about history not the present
@@mwanikimwaniki6801 Congo industries were big (compared to the region) and as important as the South European ones.
Algerian industries were also not bad, my great grand father owned one before the independence.
Idk for the rest, West Africa didn't had much industry, mostly due the lack of resources and very good farm lands that already generated wealth.
"Economically irrelevant", yet foreign companies adopt European regulations because of the importance of the European market. Look up the Brussels effect.
European regulations are a gift to the world, but a bane to Europe's future.
Well some of the European regulations are truly great
Also like u said the European markets
But on the second point its not sth u take for granted and it's not certain if it will remains that way
@@billweberx Because letting grifters and scammers profit while creating an obese, lazy, addicted and subservient populace will make Europe great again? Yeah ok.... No one's taking advice from USA anymore.
To some degree. But that's like US pharma selling medicines for really cheap in some countries - you may as well make some profit from a place. Even if it's a fraction of what would be fair.
he said becoming irrelevant as Europe's position in the world economy is dwindling
Very good videos, thank you!
There is one reason, social market economies are anti entrepreneurial and it means investors don't want to invest in European startups. Many employees in France and Southern europe would rather work for government jobs that pay better and have good pension
What if Europe is focusing on quality of life instead of GDP? Just a thought.
Homeless people and slums in Berlin in most powerful European jeez I can't imagine the situation in other countries lol where's that quality of life u mentioned mate
And where is the money going to come from to sustain that quality of life?
is the money gonna go to anti-aging research? seems to me that ethnic europeans are decreasing lmao
@@shauncameron8390 tax, they don't have to spend that much on the military
@@randomhuman1754 ok, u r right Berlin and Paris is shit, I don't know why, but come to Vienna and Munich.
The trade off for Europe is that they are happier and healthier than the rest of the world. Most of the “economic output “ only benefits a small fraction of ppl anyways in the US.
The issue is that is true now but what for the future? Europe has been planning only for short term benefit like Russian gas Chinese deals etc. those bills come due same time demographics collapse. EU likely will suffer much worse life in the future.
“Happier and healthier?”
Considering how Europe is facing rampant alcoholism, rising obesity, rising cancer rates, and with most Europeans living on anti depressants, I’d say the rest of the world is better off.
I think there's something like 20 million people alone that have over $1M+ in assets in the US. Americans are rich af and its not a "small fraction" that enjoys it.
small fraction? Lol, trust me that's not true.
It’s not a small fraction. Please get off of RUclips brother. Lol
Today india become 5th largest economy in the world surpassing UK . Today top 5 economy countries comes from 3asia,1europe,1usa
wauw India with 1,4 billion people has a bigger economy than the UK with 67 million people! Amazing!! What took them so long! lol
So many wrong things in this video.
- Absolutely nothing indicated that "big companies" make anything better for a society or the economy. On the contrary, monopolies make things worse.
- Amazon is barely a tech company with only 7% of their income coming from that segment and the rest is just low wage retail which means three out of the 5 US companies are just low tech low wage retailers. They also have a huge revenue at very low profits. That doesn't sound impressive.
- Glencore isn't in "Oil & Gas".
- The share of global GDP has nothing to do with big or small companies to begin with but with population. 1900 Europeans made up 25% of world population, now it is more like 10%
- "By market capitalization" statistics in your references just ignore the fact that many big european companies are not not publicly traded
- It is kind of hilarious to call IT / Software Development "Big Tech" when actually - apart from AI - it is not very "tech" at all. For 99% of what it does, it doesn't require a special education, does not require research, does not require huge capital investments and does not even provide that many highly paid workplaces.
- Europe isn't focused on consumers but producers. It doesn't produce semiconductors but it is the only continent capable of building the machines to produce semiconductors. It doesn't sell software for consumers, it sells software for industry. It doesn't produce barbie dolls, but the plastic molding machines...That makes for a much more robust industry. "Tech" companies are rarely the ones making consumer products and the market is much smaller.
The fact that the usa is so dominate show this to be false.
@@joesmith3590 What makes you think the US is so dominant? What measure are you using to compare it? The US is the biggest economy, but not because their companies are somehow "better", but because they have more inhabitants that work MUCH more hours per year than their European counterparts. If you compare worker productivity, European countries come out on top, and the US isn't noticably different to France or Germany meaning if these countries had as many inhabitants and as little vacation as the US, they would be equally rich.
I pretty much agree with you...
also wanted to point out that there are much better metrics than "biggest companies".... GDP/capita, PPP/capita, HDI, etc.
@@FarmerSchinken The population of Germany, France, Spain, Italy and UK are roughly equal to USAs' population(323 million vs 329 million) but theirs share of Global GDP is 12,88% while USAs' is 21,71%(or 15,03% vs 24,08%). So i dont realy by the idea that the gap between those is primarily due to vacations. And even than it kinda is the point, that European economies are less productive due to drakonic regulations and terrible demographics(also the last point soon may hit US just as hard)
@@manamark4754 Die you even read my post? Some European economies (like Ireland, Norway and Belgium) are MORE productive than the US and the US is equally productive to Germany and France. These are official statistics, not something I think. You just threw highly productive EU states with less productive states like UK, Italy and Spain together and then concluded something for the whole of the EU.
so we are just going to ignore the fact that Europe had colonised South and North America, centuries bore it even thought about colonising Africa.
I forgot that South America was filled with gleaming skyscrapers before Europeans came. Crazy how colonization sent them back 40,000 years. Sad.
No Babies
@@PaulTrippy-bj8ho I went to the Philippines on a mission trip and P.T. is correct. Visiting a home the father's daughter sat quietly looking like an angel. I was there for Jesus but she was impossible to miss as a single man.
Men: Build a profession and then get married after 29
Women: get married by 26 without debt
Cool video, thank you !
As you said, it's easier for a large company to grow in one giant country like US and China than it is to grow in Europe that has relatively the same size but is a union of dozens countries with their own competitive businesses that want to be the big ones
More competition is better, not worse.
I agree with the history and with the fact that Europe is getting less relevant.
However, your comparison of Apple, Alibaba and SAP is extremly flawed. Those are different companies in different markets. SAP is a global provider of ERP software. It's B2B. While Apple and Alibaba are huge, e-commerce websites, to both customers and businesses. You can't compare these companies.
I hate SAP and I don't live in Europe, but they are not selling only to the domestic europe market.
You are right about regulation tough.
If only Apple would enter the ERP market, it would be doing the world a favour be sending SAP into oblivion.
I think that is part of his point. He was comparing the largest tech companies irrespective of sub sector. I agree that its not an apples to apples comparison but there weren't any apple to apple comparisons to make (and to be fair the most apples to apples comparison would be Salesforce which went from making less than 10% of SAP revenue to almost catching up). And I don't think he was saying SAP isn't global. Rather I think he was trying to say that SAP isn't a startup (a.k.a. recently founded), and the only big global startup from Europe is Spotify. That was my take on what he was saying.
His point is that Europe is failing to get ahead in the things that will define the future. Which inevitably also means a loss of tax revenues and money to power their social services.
What is wrong with SAP, don't know much about it
@@shadowpat810 well imagine paying for a Rolls Royce and expecting all these wonderful benefits, luxury, smooth ride, air con, powerful engine. When you receive the product its an old rusty lada which you can't get rid of and takes millions to keep going and operate. SAP are vulnerable as the people who they are trying to sell their product to are the ones who used it and they have had bad experiences. Long live the I-Phone, IPOD generation.
I would add one more thing : Geographie
1. Europe doesn't have access to a lot of ressources (copper, Lithium etc...) meaning it doesn't possess industries that relies on these products
2. No direct access to Asia, the biggest trade hub and most populous place in the world. Trade shifted from the Atlantic to the Pacific a long time ago and since it is the most booming area in the world, Europe didn't get much of the benefits
But it does direct access to Asia. It just refuses to have it for geopolitical interests that aren't even their.
You forget about ability to get funded as a new company. In Europe this is very hard because investor ecosystem is not as supportive as in US and so to raise capital companies that succeed in Europe are swallowed by US investors but because American stock market tends to favour domestic companies even if European company established itself in US it’s unlikely that they will be the one getting investors favour them over US once so you can see many iPOs of European companies but these are mostly exists for original investors than game changing events.
' Europe is basically a giant museum" John Mearsheimer.
no no Europe was a good economy before colonizations, look at all that historical castles, palaces, cathedrals that were built before colonization only by Europeans in Europe without exterior support.
Well, being from Germany but living in the US for the last 20 years, this is completely wrong. Look at anything in the US, it's all made in China and domestic products are 10-20 years behind it's European counterparts, like Heavy duty trucks, building equipment or any technologically important area. Houses and housing technology is at least 30+ years behind. The ONLY reason why US companies are bigger is because the US consumer is buying the bejesus out of the system, using debt, thus growing faster then anything else. If Americans would understand that sending SMS is 10 years behind, they would not need to buy an iPhone just so they can use SMS but magically use iMessage and the messages are blue...yeah!
If you look around anywhere in the world, you will see European heavy equipment and cars and many Chinese companies use European tools and robots to manufacture their stuff. Just because a stock market value is high, doesn't mean the company is stronger, more innovative or better, it just means there is more money to buy those stocks.
I personally see it very problematic that the US has fallen behind a lot due to outsourcing and no innovation when it comes to important things. Just think of it. Is Google, Amazon or Meta really important for life? Not really, I wouldn't care if they are gone tomorrow, but if power is not produced or stuff not being built, we would have a problem.
Germany will lose its manufacturing competitiveness if the conflict with Russia keeps going on. Many German companies also are increasingly relying on Chinese market to stay afloat. I’ve seen it first hand as I worked for one.
@@deezeed2817 That is true that German companies are relying more and more on China. I have friends in Shenzen as I did business there. However, you can see how innovative a country is by looking at it's trade deficit and there you can see that Germany exports more then it imports, especially to the US. Since German goods are very expensive compared to other countries, it shows that innovation is way better then what the video is suggesting.
Although I'm an kiwi immigrant in states but as I observed Not a single soul uses SMS dude it's clearly a boomer thing that old people do and if u "actually" live in states which I doubt u really do.u know the traditional housing system of suburbs really sucks it can't be blamed as less advanced as it's been a inherent limitation of US culture from the beginning to which they adopted car culture and technological infrastructure depends upon where u live in states if u live in West Virginia /most of south u know those guys much laid back and it's clearly less improvised lol back in New England and mid-west it's highly advanced and domestic goods all over US r unhealthy I agree on it but they're not behind European counterparts these r two different continents(considering the US is so huge lol) they're bound to have different styles of domestic products u can't compare those ur seem biased towards Europe
the US just has the entropy to be chaotic and the reason why R&D thrives and millions of talented immigrants flock in for opportunities like probably u could've did lol
@@randomhuman1754 mf, you wrote without any punctuation mark.
Trying to be smart but not using punctuation marks. lol
@@gloofisearch germany have luxury car companies like audi and mercede whose cars cost 50000k easily but still less practical and gives less mileage than toyota.just wait few decades soon you see Chinese stuff everwhere
I prefer having 25 days paid leave and working one job and not being afraid from hospital bills rather than having tech giants paying government officials so they can grow.
Elon Musk, "China is the future."
Enough said!!
Yeah, but Europe is becoming a museum.
@@VindulaP Europe itself is already a museum
I must say that I am extremely disapointed with the quality of research in this video. To describe Europe and the European economies as insignificant or „becoming irrelevant“ is ignorant at best when the opposite is the case: Europe is STILL an economic powerhouse and will be for the foreseeable future.
Europe is home to many of the most advanced economies in the world and some of the richest nations. You can look at total GDP and GDP per capita, for example, or educations levels and quality of live. Are the Netherlands „irrelevant“ simply because no tech Megacorp is headquartered there? The video brings up mostly software companies and consumer electronics as the pinacle of technological advancement. What about complex machine tools from Trumpf, semiconductor suppliers such as ASML, MRI machines from Siemens and Philips, Precision instruments from Jenoptik or Zeiss? I could go on and on but you get my point…
Sure, none of these companies are as large as Amazon or Apple but they do have a very high technological sophistication and play a major role in the world economy.
The video should have the exact opposite message: European economies are often times UNDERESTIMATED because a lot of the companies play a more hidden role.
In short: European nations, on average, are RICH NATIONS. It is one of the foundations that allows them to achieve a standard of life that is comparable to, or even exceeding that of other advanced economies such as the US, Japan and so on. And personally, I‘d rather live in Sweden, Germany, Italy or even the Czeck Republic or Portugal than in workaholic countries like South Korea and the USA.
Cope
Meh. I've lived in Britain, Germany and Japan. My experience in Japan was so much better 🤣
@@papakairu Japan's beureaucracy is a hellish nightmare I wish to never experience again.
100%
@@witthyhumpleton3514 as if some parts of europe aren’t a hellish bureaucratic nightmare lol
1. Everything is fine in Europe
2. Stock value is irrelevant
3. That's known as globalisation
And overcoming the legacy from WWI/ WWII/ Cold War is still the most important issue Europe faces, in the end everything will be fine.
The core importance for us to unite. If we manage to so that and nothing changes, I will start to worry. The main obstacle for us is therefore mainly just how many people over here still don’t get how important it is to reform the EU. Others not understanding our strategy in that regard is really not a big deal at all.
@@Arcaryon I agree 100%. Our biggest problem is people falling for nationalistic-populist ideas instead of focusing on European integration as the solution. That the rest of the world can’t understand that is not something to be worried about, we never expected them to do so.
everything is fine except for the record low birth and fertility rates
Europe's problem is quite simple: They stopped having children. Now, they may be finding it cool, just traveling, not having too many adult responsibilities... but at one time or another, this will go wrong, as we can already see. In a few years, the young population will be almost non-existent while the elderly population will be gigantic. So, it's the mathematical logic of the economy: without young people working and with many elderly people depending on retirement, the economy will soon crash.
Not having kids is a problem in all developed countries and yet some are growing, like Canada, the future is to literally import Human Resources from poor countries that usually have a high birth rate with low standards of life
@@duca8063 the human recources europe gets are people who are more than happy with the social benefits they get from the countrys they overflow, so they dont integrate and will not work why should they, they get it for free
@@duca8063 but that means eventually you are handing over a country to another race slowly
@@pinkyfinger9851
That isn't a problem.
@@t.d.2016 It is, actually.
Lack of entrepreneurship is the biggest problem rn
Benefits Culture and uncontrolled
immigration . ? The importing of
low or zero skilled " workers " who
have Zero interest in the Culture or
History of the host country . The End of Social Cohesion . Come to
Germany / Sweden to see full effects !
Europe already has high wages and GDP and is stable. That's really all that is required for a strong economy. European stability is one of its main advantages which I don't think you realise
growth followed by stability/stagnation followed by irrelevance
Being complacent will just kill off their economies. Which is already happening except for UK and Germany which still have lots of relevant industries.
@@zerohero5753 UK is falling due to brexit . Germany is falling due to dependency on russian gas . France is still a powerhouse with 26 licornes ( billions tech company) born during Macron first mandate.
@@AshishAwaghad Bingo, hit the nail on the head. It's "stability" for him, but his parents would brag about their countrie's "growth". Hopefully Europe can turn it around so his grandkids aren't irrelevant in the global economy.
I disagree. Northen Europe has that. The east and the south not so much.
If judging by the performance of each individual EU country, yes, their economy is waning. But, as a whole, EU is anything but economically insignificant. Yes, true, a lot of Big Tech companies and flashy unicorns are from Asia or US, yes they are making a lot of money now, but you can not guarantee they will continue to exist in 50 years time. The European economy seems like a relic, the big money making companies are building themselves on this relic, but did not replace it. EU companies dominate the under-the-radar industries, the industries that make modern life modern, like pharmaceutical, precision equipment, finance, food and beverage, chemical etc. These companies have weaved into our lives so tightly that you don't notice them. Think Nestle, Unilever, L'Oreal, Siemens, Astra-Zeneca, Philips, Airbus, Adidas, AXA and so on. And kid you not, EU companies dominate the luxury niche market that no Asian or US companies can compare. With the trend of growing middle class around the world, they are going to continue making money. With EU being the leader in regulation policies, and with EU companies are used to following these regulations, they are not the ones getting into big trouble and eventually falling into obscurity like some bone-headed tech giants.
Luxury goods cannot guarantee an entire economy. Especially when Europe doesn't produce nearly any of its fuel that's insignificant.
@@uchennanwogu2142 Europe is made up of 1000s of medium sized high tech companies. That’s were Germany is powerful. America has a small monopoly of big companies.
@@scottwhitley3392 Problem of medium companies is they do not have enough money in research and development. And as soon as something unexpected happens they are most likely dead. Reason why Germany has so many medium companies is just because everything was rather stable for many many decades. But now situation is changing....
@@Mr_MikeB still better than having your country controlled by Google, facebook or other giants.
The EU needs to unify its regulation across the nations, middle industries are probably the last problem
@@redcrown5070 Thats the problem - you think that people in EU wants to live in one common empire. Thats not true. They believe they are too different, plus, whats even more important - they believe that resources here is too scarce, so they want to keep them in their own rabbit holes.
After all - why Germans would have to believe that Frenchman would want to do anything good for them? Or why Poles would think thank German born leader is there to help them? And last - there is no common official language for all countries. And most likely never will be. So how can you unify anything if so much can be lost in translation literally?
Our younger generation mostly love to live luxury without any performance on the other hand the Asians are motivated to work hard and smart. 😢😥
Great video, however it's surprising to me you totally ignore ASML, one of the most important tech companies on the world
He ignored a lot of important companies that tons of others rely on, this whole video was very narrow minded looking at a few companies and gdp growth
@@michelbruns Well it’s a short video and I do agree with the bigger picture he makes. We’ve been messing around for decades without a clear global vision
Most of the important companies are German but given what’s happening now with Russia then the whole economy of Germany is at risk of hollowing out
ASML, even though a european country, still has to follow rules set by US in geopolitics tell you everything about EU relevance on world stage.
Love all ur videos and yes this is all true. Also u should mention the demographic crisis. Although it may not be as much of a factor currently, it will be a huge one in the future.
When I was studying in Europe as a Canadian and a person of colour, the opportunities for me felt limited in Europe compared to North America. The environment favours the status quo rather than entrepreneurship which is almost like a religion in America. Europe seems more like a bystander than an active participant in innovation and capitalization of current phase of global economy.
Maybe it's because Europe doesn't want to become too much capitalist. I prefer that Europe does the things well than Europe does the things bad only for the money
@@Silence_stp Dunno about not wanting to become "too capitalist", but in Germany innovation is put on a pedestal like it's the future of this nation, and yet whenever there's a new way of doing things coming up, everyone expresses doubt and drags it down all the time. The tall poppy syndrome here can be quite exasperating
This is the most dumbest things I ever read
If you look at optical, chemical, pharmaceutical and engineering companies Europe is still doing very well. European investment structures are simply different than in other countries, so you'll get a lot more B2B rather than B2C companies. There are a ton of critically important companies in Europe that dominate their market, but you haven't heard of unless you work in their specific industry.
@@Silence_stp Not everything that happens in the world is "planned". No one sat around a table deciding to lower your GDP by an extra percent because things will be "too capitalist". You're just reverse engineering a pleasant sounding explanation to a very real difficult problem.
Having X of the top 100 companies isn't really a measure of economic success or their lack of, this could be just as much down to an inability in other markets to properly regulate and prevent the establishment of monopolies. This is why GDP metrics often get used instead as they are more reliable than X of top 100/500 and on the most part, GDP per capita makes Europe look even better.
If we look at the US tech companies in the top 10 (by market cap) that is what:
Apple
Microsoft
Amazon
Alphabet
Facebook
Tesla
Berkshire Hathaway
As far as I am aware, with the exception of Berkshire Hathway, the rest have all had calls of attempting to become illegal monopolies. Apple has a very much lock-in approach to it's products, trying to keep customers stuck with themselves, Microsoft has had anti-trusts against it the past. Amazon is basically unrivalled in it's main product, Alphabet runs the largest search engine in the world and essentially killed or reduced to irrelevance any of it's competition. Meta/Facebook, admittedly their dominance was more due to the incompetence of Rupert Murdock after taking over MySpace, but still Facebook essentially became another monopoly. Tesla has tried to lock down several of it's technologies in ways that it's competitors could not use, in the EU Tesla is forced to apply to EU regulations which stops that shit over here but back in the U.S. things like proprietary chargers for cars and other tricks have all been used. Berkshire Hathaway has owned it's shares in numerous companies that have tried to establish as illegal monopolies, including Apple. It has also had shares in IBM, Coca-cola.
When one just looks into these companies, it is a sign not of a healthy economy in the US, but of an exploited economy in the US. So size of companies should never be used as measure of economic success. The problem with these exploited economies, is while they look big, the money is often funnelled to the ultra-elite and leaves little capacity for dealing with issues like economic recessions. The U.S. is more vulnerable than Europe to a recession, most of the U.S. is reliant on high valued tech stock, which many for a long time have seen as over-valued, a recession is enough for that house of cards to crumble.
The bigger question is also, is Europe getting smaller or is the rest of the world getting bigger, it is almost certainly the latter. There are many industries which are still highly reliant on Europe, such as Aerospace industry, with one of only two companies in the world able to build at the scale needed for reliable and safe commercial airliners and one of those based in Europe. This is despite Russia and China both trying to make their own local rivals which while having some limited success, were just never able to hit the required scale to build those types of aircraft. However as other nations start to catch up to Europe and NA, this isn't necessarily a bad thing, from a globalization point of view this means that there will be more trade with more countries, which is good for everybody.
Another metric which can also be looked at is poverty, which is a significant factor, the U.S. and most of Asia all have significantly higher poverty rates than the EU. Which is to say that despite it's economic power, the U.S. has a higher percentage of people who are below the poverty line than the EU.
If I were to finish with a point however, it's to return to the previous companies, Apple, Microsoft, Amazon, Alphabet, Facebook, Tesla and Berkshire Hathaway. With the exception of Tesla, all these companies have something in common, they DO NOT innovate, they do not invent, they re-engineer what already exists. Tesla is only an exception due to the work of Martin Eberhard.
Apple started due to re-engineering Atari components to make a PC, the idea itself was great and the two Steves did make something great, but since then there really hasn't been anything that apple has done that nobody else tried before.
Microsoft essentially started with BASIC, Microsoft did not invent BASIC but from BASIC went on to PC-DOS which they made by buying rights to QDOS and re-engineering it for IBM. After IBM tried to shaft them, Microsoft went it's own way with MS-DOS and later windows. Windows was not the first GUI OS, neither was Apple Mac OS.
Amazon, Jeff Bezos was in finance and had to deal with up-coming e-commerce businesses, he saw an opening and jumped in on it. He did a good job of it, but it's not an original idea.
Alphabet/Google - obviously Google was not the first search engine, neither was Yahoo. Google might have won this on efficiency and speed of it's searches, but also for it's clean minimalistic design.
Facebook - obviously followed after myspace and myspace was based off of social websites from Asia
Tesla - did definitely innovate before Elon took over, Elon slew it down and leeched off of it. Almost no company associated with Elon Musk has ever done anything innovative, more scam than anything else.
Berkshire Hathaway - is just an investment engine, so yes....
You'll stay ignorant till the time you actually understand what innovation means. It's the culture which is letting down Europe as well. People are just more relaxed and not hustling as much in the US or in Asia. Now that's a generalization, but mostly true.
@@somtrip I know what Innovation means, the companies I mentioned do not innovate. They take innovation from else where and claim it as their own. This is because Hustling is way more common in the US, look at Elon Musk, the guy is literally nothing but a hustler, a con artist, he has invented nothing but claims to be a founder of every company he gets his grubby little hands on.
As for Asia, one only needs to look at China for the damage all the hustling done by large corporations has caused, the collapse of the Chinese Housing market was all caused by increasing levels of corruption and con artistry by very large companies. People continue to confuse large unstable economies with GOOD economies, they are not good and more often than not contain more toxic assets than good ones, US and China are both plagued by that.
@Stiff Upper Lip well stated from the great Indian State known as the UK
@@gerriehat what you say, literally makes no sense. As far as UK goes, it is the closest to the US in many aspects (altho the direct opposite in regards to gun control), the UK is also behind countries like France, Germany, Sweden, The Netherlands, etc on quality of life.
The belief that Europe is doing fine despite being left in the dust by the rest of the world because of a few very tenuous quality of life metrics that rely so much on lack of context, is the same terrible argument that hunter-gatherers live the best lives and that all misery in human life comes from civilization. There's so much wrong with its logic and the worst part is that the people who espouse it are motivated to cover up the very real suffering of those in the less advanced society, while simultaneously claiming those who point out their lower advancement enables suffering are evil racists who hate the tribe when in fact it's the noble savage espouser who is actually enabling their suffering, and also is the one putting them on the path to extinction by preventing them from attaining the means to preserve their way of life.
The same will happen in time, and I'm sure you and every other European with legendary practice in denial will deny it all the way through. Europe will continue lacking behind while the US, India, China, Japan, perhaps even Australia, and every other rising economy will enjoy the rewards of advancement that common Europeans are barely aware exist, while Europe becomes more and more susceptible to authoritarianism and infighting. By the time Europeans snap out of this stupor, you'll already have declined so much that the former glory and what most used to think of as your traditional place in the world is virtually unattainable--mostly due to the fact that your ugly denial has alienated anyone that would've been invested in seeing you rise to the occasion again.
Yes. Europe is good place to live and takes care of its citizens, at a price.. I was just wondering what about the (fashion) luxury brands - they seem to have grown a lot - would that be an exception? Another comment is that some of the better economies in Europe thrive on family business, typically providing very specialised high-end products exporting worldwide and those have been growing significantly.
Most luxury items are now made in China which means a lower price point.
japan was the biggest buyer of eurolux in the 2000s. now it's probably china
Correction: Samsung and Apple dominate the European smartphone market, not Huawei
Xiaomi exceeds samsung exept for the flagship
Huawei would of if it wasn’t for the sanctions
there is nothing aspirational about the big companies in the US
It does not matter how company do, life quality matters. US companies do well, but half of the people below poverty line.
But if this continues their below poverty line people will have better conditions than the Europeans in the future
@Nemusis 999 LOL, have a walk through Detroit
11.4% = half?
Europe is like a man who inherited a large fortune from his parents or grandparents and decides to just buy a nice chalet while at the same time keeping his job and thus his income matches his spending. Some of his friends suggest him to start a business, invest in the stock market or any new opportunity to multiply his inheritance, but he refuses because living a simple, upper middle class life is all he needs to be happy.
The "problem" in any case is that at the same time others decided to start their on business and are getting richer and eventually even surpass this guy in matters of material wealth.
So, is this good or bad? Well, it all depends if you are optimistic, pessimistic, realistic or whatever.
Using your Analogy, the wealth inherited will finish off in one to two generations, if the standard of living outmatches the income.
Europe's current power and wealth and lifestyle is unsustainable compared to its current trajectory. Good luck Competing against Asians who already have stronger militaries than Europe and are taking radical changes for our economies.
West is destined to lose, its a question of will they even try to prolong it or simply live in denial till the time of reckoning arrives.
Europe is lagged behind because of their comfort zone (high quality of life, high wage with lesser work time, free education, free healthcare, sometimes allowance, etc.) that provided by the government. While people in the USA, or East Asian countries, even the new emerging nations like India, Turkey, or Indonesia have dedicated their lives to work harder for better life.
For example Greece is a country with the status of developed European country, better higher wage and quality of living, but at the same time they are left behind to poorer Turkey for the technological advancement and industrialization.
@@lemagnifique1573 MF complaining that a nation is developed engouch too not exploit their workers *cough* *cough* USA
Two worlds: Brussels Effect. Europe is also a uniquely globalised economy, with their GDP-to-trade being over 40 per cent, and the largest network of preferential trade agreements. There's also a different book: Great Reversal. America and China might have big tech, but those companies shall play by the EU Single Market - which is more competitive compared to the US - Rules, and depend on European high-value added supply. Also...you do realise European countries tend to at the op of global economic freedom index, with the US and China being far from the ones at the top. Finally, Europe has had its population declining and most of its "stagnant" growth has been derived from productivity increases, while for America gains have been proportionately more reliant on immigration.
Yes, Europe is on the decline, but it owes those issues to granted capital markets, an incomplete Single Market, and demographic decline. America has stately been loosing ground as well, and the fact its Europe - not the US - being the global regulator despite declining prominence of its market is kinda telling you something.
Probably the best comment out there
wtf are you on about with "demographic decline" EU is like 550 milion while USA is 330. The ONLY problems of europe stem from bruxelles and the big soviet style bureaucracy machine is has morphed into in the past 20-30 years
@@crimsonlightbinder love, you realise Europe is literally the oldest continent in the world with lowest fertility rates outside of select few economies in the Asia pacific? Also, rates of both market entry and exist for new firms are higher in the EU compared to the US, with Europe leading the pack on global competitiveness index, as well as global economic freedom? For the side not, most of “regulations” under the EU Law are directives issued by the European Commission, which are kept off national books and remain up to national governments to implement in the ways they want to. Plus, the Brussels Effect appears to be pretty much real, and gives European companies greater advantage as those are the very same companies that the EU Commission indirectly consults. As you know, talking to stakeholders/social partners before crafting a legislation appears to pretty much a norm. Europe also tends to export high value sophisticated machinery, equipment, chemicals, and professional services. As far as I remember America mainly sells agricultural products - barely pulling off the Dutch - limited computer components, oil, and finance. iPhone are designed by Apple, but made in Chiba, from German and Taiwanese components, and the equipment designed and created in the Netherlands. ASML’s critical role in semiconductors, as well Germany’s Kuka for industrial robotics are just a few examples. Don’t forget European companies tend to also be undervalued if you compare Q-Tobin rates for both EU listed and US listed public companies. Basically there market evaluations fall behind their total assets.
Terrible socialists in Sweden and Denmark tend to also have higher share of entrepreneurship and gross capital formation compared to the US. Aka having greater share of private investment in their GDPs.
On the final note. All EU operations are controlled by Member State governments either via appointing the Commission and the ECJ, or veto within the Council. Notwithstanding the fact the EU Law mainly applies to consumer protection and competition, leave more than enough room for the national governments to mess it up. Especially as far capital markets and banking is concerned.
So either do your homework or just don’t talk about something you heard once in a bar after work. Do everyone a favour, love. Much appreciated:)
The Brussel effect is overrated. Europe is the only entity that has the will along with purchasing power to regulate. They're only four countries that have the ability to regulate global business. The united states, china, The EU, and India. The united states is against regulation. China is more into regulating human behavior than it is regulating its' businesses' ability to earn, And India falls into the same category because they don't care about killing their export economy with regulations. Therefore most of the duty of regulations is left to The EU because the other powerful countries don't care enough and the EU is an import economy anyway so regulations make sense for them.
@@jjohnson649 india has a smaller economy than Germany.
This video doesn't even make sense. What is economically irrelevant supposed to mean? Does your knowledge of the world consist of only top 10 lists? the EU is the 2nd largest market on Earth. What does Walmart being a large retailer have to do with that? This video seems to ignore anything positive that has come from Europe in medicine or capital equipment manufacturing for starters.
Have been thinking this for a while now
Good video! Pretty much all of these points might apply to Canada as well. We just can't seem to get any innovative, large compagnies!
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So in summation, this person thinks the lack of super sized monopolistic companies with exorbitant growth is a sign of "becoming economically irrelevant". Sure buddy.
Some interesting points, but it's like looking at a tree instead of the whole forest.
@Nihilistic Atheist Totally
But they are becoming irrelevant.
Yes, because a great way to measure economic performance is through companies. They are the main drivers of economic growth in almost every single country in the world. The Europeans have taken advantage of their economically prosperous period by building a massive unsustainable welfare state which can only survive in a large, developed economy. The European economy is developed, for sure, but is it large? As the guy mentioned, Europe accounted for over 36% of the world's economy in 1960 yet just 15% today and is on a continuous decline. Furthermore, there is a massive demographic crisis going on in Europe which means give it a few more decades and there will be chaos in the continent.
@@sxrkar_usa The EU GDP is 17 the US GDP is 20 trillion . The difference isnt as large as you might believe. The shrinking portion of the world economy for europe indicates rising rivals more than european decline. There's a lot to do for europe but it is more stagnating than declining. Europe will never have 1/3 of the world economy again. This requires weakness of other nations, but those nations wont be ever so weak again. The knowledge gap isnt their anymore and wont return.
Regarding the Walmart and Carrefour comparison, it's not really a fair one and it ends up being missleading. Carrfour's hypermarkets face a bigger and more diverse competion in cities with different logistics. In the US, Walmart might do better since there is little to change the culture of driving your car to the hypermarket. In Europe, those big Carrefours, sometimes at the edge of towns, need to compete with medium-sized stores like Lidl and the small supermarkets found on many street corners. It's just way more convinient, most of the time for most people, to shop at the supermarket next to your apartment building, rather than sit on a bus or drive to the nearest hypermarket. Sure, some big stores found their places within cities, they're more convenient and closer to the inner urban areas, but they are still further away than the corner shop when you need to buy bread and milk. Carrefour has been doing it's best, I guess, like Tesco, Cora and other chains did, trying to open smaller versions on those street corners, but it remains a hard battle with a lot of competition, and they are also a bit late to the game.
Carrefour doesn't even exist in Germany. That's as if Walmart wouldn't be in California.
2:36 "Europe didn't get rich because of colonialism, it expanded to colonialism because it was rich." Profound and often counter-intuitive statement that's consistent with a lot of other economics youtubers I watch.
He isn’t wrong about the specific point, but that generalization is wrong. This reasoning is only sound if you assume that colonialism started in the 19th century. It started in the 16th, which is also when real GDP growth exploded in Europe, 280% from 1500 to 1650 in some places. That’s huge back then. But I’ll gladly meet the point halfway and say that the foundation for European economic growth was also much more than just colonization.
Europe became richer with better living standards primarily because of colonialism. Both you and the youtuber need a proper history lesson as well as a proper economics lesson going back at least 300 years. Just to make it simple for you guys - start with the primarily causes of World war 1.
That's not wrong though. Wealth in Europe was growing before colonialism and it was Europe's capacity to even colonize far away lands that made it possible. Put simply; nobody else had the capacity to colonize like Europe did.
Not to say that Europe didn't massively benefit from cheap foreign resources and exploitation.
@@bindruk4321 that is more debately than you think. Germany had a only a brief period of colonialism and that was even a net loss for that country. How did it get rich then? The USA also didn't colonialize many countries and thoses were also insignificant for the American economy.
Simply saying that history can only interpreted in your way is just plain wrong.
@@Osterochse oh for gods sake ! Lets start with your first point - germany. Germany industrialized relatively earlier than france or britain. Their period of industrialization was immediately after the first way of enlightenment spreading across europe ( italy mostly- during the renaissance) . However , they did not have a strong history of trading with the east - be it for spices or be it for silk etc etc. Hence they had no colonies or captive territories to sell their products as a monopoly. Britain and France put discriminatory tariffs on german products in their colonies. This was what led to ww1. As to why germans are still rich despite losing twice - thank the usa 's marshall plan which transformed west germany to an industrial powerhouse after ww2. Having a long tradition of factories and industrial production helps.
Another factor is that numbers nowadays matter. The more human resources (the more brains). Europe has way too many languages and small countries. In other words it's harder to transfer intellectual capacity due to linguistic barriers. China meanwhile for example has 1 billion and 400 million population with the same language. It has potential to create its own internal market (a thing it does), where linguistically large mass of people are eased to operate with each other due to one common language. Innovation can then more easily thrive. In addition we live in time when the number of geniuses a nation posesses is crucial. Many europeans end up conservatives and are reluctant to innovation (change) of the systems. The only thing that could delay the erosion is if the EU become an official nation state & implement further integrative policies. Even then however Europe is likely to become obsolete. We also have ageing population (which interlinks internal and external from Europe migration).
South Korea, Japan, and Taiwan with less population but still do better in tech companies than any European countries
This war is only making things tougher for the average Joe, prices going crazy globally and standard of living drastically dropping, I am literally scared for the future of the economy at this point. Everyone needs to brace themselves and get financially prepared for what's coming.
War and lockdowns
Cope harder
From my personal point of view, war is not the root cause. Small-minded politicians are. Instead of concentrating on current events, need to focus on bigger goals. Take for example, Elon Musk. He's not afraid of dreaming big, every time coming up with new ideas, such as a mission to mars.
@@user-yj7um6hv1d Also see Michael Levin. Groundbreaking science.
Biden seriously overreacted with the sanctions. Probably a byproduct of his son's ties to Ukraine.
But it's kinda similar to China blocking imports from Australia for political reasons - only to find that they don't have enough fuel for power generation anymore... smh.
These governments are extremely shallow in their understanding of how their decisions affect the world.
Good video. Some worrying facts to contemplate.
The euro lost a lot of value against the dollar over the past 10 years. This inflates the growth/shrinkage of companies when measuring in usd.
"The euro lost a lot of value against the dollar over the past 10 years. This inflates the growth/shrinkage of companies when measuring in usd."
I don't buy that argument. In the long term (which a whole decade qualifies as), the movement of the exchange rate should close follow the inflation differential (as per the theory of purchasing power parity). If one country has it's currency devalue over time relative to another currency it should also have a higher inflation rate by similar amount which should add to the *nominal* growth of its economy. This works exactly in the opposite direction as the effect from the exchange movement so in the long term they should cancel out.
Does that really matter? Many corporations were already doing the 1 Euro = 1 USD thing for years now; so if anything the consumers just caught up.
@@stephenjenkins7971 I don't follow?
Few years ago, 1 euro was about 1.50 usd
If a euro company did
€1 million in revenue, that was $1.5 million
the company in the US did
$1 million in revenue, that was $1 million.
Now in 2022. The US company grew with 50%, did $1.5 million revenue.
The euro company grew with 50% as well, hence they did €1.5 million revenue, which is $1.5 million.
Both companies grew 50%. However, since we are measuring in USD, it seems the US company had a huge growth, and the euro company stood still, or even shrank considering inflation. While in reality, both saw equal growth in their respective markets.
@@seneca983 I only partly agree with this. THis works if you have a federal monetary system, which is not the case in the euro area. The countries work as independent markets that share the same currency. This causes trouble such as the ECB not increasing interest rates to cover inflation because the Southern members otherwise won't be able to pay their debts. Now they just evaporate in inflation.
After all, with your logic, countries that do not control the dollar but still use it, such as Ecuador or even Djibouti (that pegged its currency to the dollar just like Denmark did to the euro) would encounter equal inflation and economic prosperity as the USA, which is not necessarily true.
@@moneymakermike6189 "The countries work as independent markets that share the same currency."
This doesn't really mar the argument because inflation rates across the Eurozone are pretty close to each other.
"with your logic, countries that do not control the dollar but still use it, such as Ecuador or even Djibouti [...] would encounter equal inflation"
Yes, and this is what we actually observe. You can e.g. use the World Bank website to show the inflation rates for the US, Ecuador, and Djibouti after, say, 2004 and they match each other fairly closely. Why 2004? Well, Ecuador dollarized in 2000 so it doesn't make sense to compare earlier years. Also, before dollarization it had a very high rate of inflation and after 2000 it took a couple of years to reach the same level as in the US (so what I argued doesn't hold in the short term but 10 years is long enough) so 2004 seems like the most illustrative starting year for this.
"and economic prosperity"
No, definitely not. This is a completely different thing.
All due respect but population growth should be part of the calculations. Maybe our companies have grown less because the playing field is fair and competitors can take over market share. In a lot of European countries, the quality of life is very high for the middle class and if you get unlucky or want to start a family, you actually get supported by the government.
Before Elon Musk and Steve Jobs, experts was saying same things for US. So europe just need couple of innovative companies and flexiable relagulations.
European economies are becoming irrelevant because of EU rules and regulations which are making them uncompetitive , and also not protecting them from cheap imports from polluting countries . The real problem is the EU itself with unaccountable politicians and civil servants and outdated and excessive legislation '
There is also a different kind of political view in each of these parts of the world. The US is a true capitalist state, which has its benefits and flaws. In China you have state controlled economy to direct spending into and stimulate perpetual growth. In europe there is more of a believe that 'too large' companies aren't able to choose the right path for society but only for themselves. this way the Eu tries to maintain competitive markets everywhere however small they are. This way all these companies are incentiviced to be beneficial for society rather than for themselves. Despite this the EU has sold off too many companies in the name of 'helping the brand grow' thus giving away authority.
Europe might be losing a share of the total economy pie of the world they are still growing (slitghly). Europe has been more focused on sustainable growth rather than perpetual growth (which is seen in the US and China) this for both environmental and societal reasons. Self sufficiency in certain sectors will be key in making sure the EU can hold its ground however large other economies get
True and I can't help but think he's using America as a benchmark on how to do things which doesn't work for many other countries around the world.
Europe for instance isn't that big on building big corporations and prefers to build small to medium size companies, whereas the US goes for big corporations at the expense of medium and smaller one, personally, I prefer the medium to small companies as they are less likely to dictate terms to governments and there tends to be a lot more of them which is great for competition.
I also can't help but feel that the US is trading in democracy for big corporations which more or less rule the country now, great for those companies in it, not so great for the people in the country and probably explains why the US is falling so far behind other modern countries on so many social benefits and rights.
And thus the one biggest company (the government) remains unchallenged by others that might rise to power. lol
But, consider for example how encryption and thus more privacy became widespread on the internet despite no government having wanted it? ... It was mostly done by force by a company people see as attacking privacy: Google.
The powerful can only be challenged by those who themselves have power... And it's not like democracy gives the people much control over most important decisions that the government and the politicians ruling it are inclined to make.
@@paul1979uk2000 very well said
I work to a Canada- Us transport company and we send customs entry number to drivers via FAX to truckstops . Who in Europe still uses fax? Nobody.
not to mention check payments in the US
Americans in a nutshell.
Europe’s biggest fight is the language and culture problem of the nations. 😢 In the beginning in 1954 when I started they should have declared that all bureaucracy should take place in Esperanto for one unity within Europe language and every nation has their own language of course but that is the main problem that culture is defended beyond reason …..
It doesn’t matter how many big company are there. What’s important is that even net growth is disappearing.
Whenever there is tech innovation in europe some large us company buys it