Okay, so I’ve been sitting on a $56k emergency fund for what feels like an eternity. No idea where to start with investing. But hey, maybe Europe’s economy catching up with America is a good sign, right? Hoping to finally put my money to work, just need a good headstart. Any tips?
I get where you're coming from, but I’d say take it slow with that emergency fund, especially when you’re looking to jump into investments. I’ve been there too, and what helped me the most was talking to a financial advisor. It’s not all about just jumping in, you need strategy. Find someone who knows their stuff!
"I totally hear you both! I’m also itching to start but just don’t know how to take the next step. I’ve been reading a lot, but when it comes to making decisions, I feel a bit lost. Anyone know how I can actually find a good financial advisor? I mean, I want to get it right."
"There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field, look her up."
Wow, after looking up Linda Aretha Reeves, she seems like exactly the kind of expert I need to guide me on this journey. I’m definitely going to reach out!
"Watched Linda Aretha on Bloomberg Finance Summit four years ago, and her presentation was fantastic! Really seems like someone who knows how to make things happen."
The situation is worse in the United States, where our economy is struggling to survive like a flailing fish. The U.S. economy is truly in a very poor situation right now. As a result, it experiences convulsive spasms and desperately tries to develop in whatever manner it can. Tricks, gimmicks, and rule changes are all attempts to boost the economy and keep it from collapsing, but they only provide short-term respite to people because inflation causes us to decline.
People have no choice but to believe that their currency is worth what it is. Even in a hyper-inflationary situation, individuals must continue to use their hyper-inflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
I've stuck with the popularly ‘’Sharon Ann Meny” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, I agree with her.
The EU doesn't need to nurture big companies, it needs to create an environment where small companies are easier to set up and grow. Europe has lots of big companies, but they're all dinosaurs who are generally protected by subsidies and regulation because they're seen as so important to domestic economies.
Big problem needs big muscle. To compete against global giants you either do it like china with a lot of entry barrier or you do it with lot of money and incentive. We europeans keep using US tech and paying to US company.
Unfortunately, successive incompetent governments will do that to a country; and it doesn't look to be improving any time soon :( If government ever remembers that the country extends past the M25 then maybe we'll start getting prosperous again...
@@TheIrishny *"The UK is actually growing faster than pretty much all other large Euro countries."* - Who told you that? The UK is very much near the bottom of European countries when it comes to GDP growth. You can google "Annual real gross domestic product (GDP) growth rate in European countries in 2023" to see where we are.
Is the US really doing so much better? Public debt is twice that of Germany in relation to GDP! If the US keeps throwing money at everything at the current pace, she will probably be bankrupt in ten years. Generating "economic growth" by public spending can work. But it can also backfire massively if the money is not spend on lasting things but rather on consumption.
3:57 What a terrible point. Every single example does not convey anything useful. The productivity of Norway is tightly linked with oil. In 2014 we see the dip, and as such in 2022 they had incredible growth. Actual productivity excluding oil is similar to that of Sweden. According to that graph, Finland hasn't reached 2005-levels of productivity. Hardly something you can call growth. Germany is one example where there is mild productivity growth, but nothing you'd call extraordinary, knowing Germany's notorious bureaucracy.
Are you dyslexic? The point made by the video is not about growth but about high performance. So apart from your point about Norway, nothing you said is relevant
@@TrueBlueVinn Yes even in the Draghi report the "performance" or productivity has already fallen compared to the us. If you don't sort out your energy problem and productivity problem I think eu would literally break up.
@@nightmark2120 USA blow up the Nord Stream 2 making Europe conflict for survival with Russia inevitable, we were always a tool for America, the fact people don't understand this is concerning. The refugee crisis was created by USA meddling in the middle east, and do nothing to help. We lost our way, we European Union were supposed to be a third force between Russia and America, we bowed down to one this is the result...
As an American in Europe, I'm sceptical. Sure, the numbers say X and Y: that productivity isn't as good, yadda yadda. But, my sceptical commentary has to do with the "so what" of economies. Europe is much better at balancing work/life balance, ecology, and, as you mention, worker ownership. Perhaps these things "drag" the numbers and metrics, but having better numbers at the expense of people's safety, health, and economic well being seems to be a reasonable trade off, to me. Having paternity and maternity leave that is paid, public transit, etc etc etc just seems better. I chose Europe for this reason.
Yes, it's also important to check the price of economic growth. Overall, the EU is doing alright, and comparing to much to the US is not healthy. The US has its strengths, that derive from its history, and most importantly, from always being one country, with one economic policy which allows easy free flow of capital around, beside no language barriers. The EU, on the other hand, is a union of different countries, with different history, and economic policies, plus some language barriers that still exist. It's way harder to raise big capitals and move them around. We can say that the EU is a best, a federation in the making, but this making will take decades, with setbacks expected. If the EU was already a federation, probably there wouldn't even be this discussion. It would be by far the most "competitive" country in the world.
America is generally better for the enviroment than Europe at this point. You’ve seen Germanys coal operations since Russia? Public transport also isn’t a quality of life indicator. Sides that both places have their strengths and weaknesses
Except you don't need to abandon those things to keep a good economy, the US could afford all of those things if it had the political power to do so. Plenty of people in the US have all of those things.
These things compound. Having just 1/2 of the growth for 5-7 years would shrink the economy and population by around half. Younger people would leave since there are better opportunities abroad. Europe as it is now, cannot take anymore shocks to its system without radical changes. It doesn’t have the fiscal space nor the robust and deep economic roots to pull from. Remember, Argentina was one of the largest economies in the world, now it is barely the largest in Latin America. South Korea was the poorest in the world, now it’s one of the wealthiest. The margins and numbers do matter.
Europe has large companies, we dont need more of them. We need small businesses an innovation. Here in norway it's a nightmare to run and start a company, it's like the government wants you to only work for the established large companies they are ok with. It's a suffocation of innovation and competition, not a lack of major companies.
Another quick note, companies here just dont hire people. In the US (where im from) there are like 5000 internships available in Houston alone here in Norway (where im studying) there are 300 in the *entire country* for the 2025 summer internship season. That is INSANE.
This is essentially corruption and it's everywhere. We do it in the UK but slightly differently. It's really easy to setup a micro business, but the jump from a kitchen table business to a ten employee business is made nearly impossible by the government. Big companies pay good money for this, they don't want hungry competition now do they.
@@manusbyrne8972 of course, the more competitive the UK is the more it sells abroad, which means normal people like me can be taxed less. I run a small business.. I was keen to have staff but soon I realised I needed to spend weeks on paperwork like employer side tax for staff wages who might not make a profit, or sorting out the pension of some 18 year olds.. In the end I concluded the UK government could fuck itself. I now just use freelance staff in Argentina and Mexico. Young people in the UK can carry on voting for governments who pile regulations on small business and see how far it gets them.
A very effective long term solution to the EU's problems would be copying Estonia's digitalisation programs with respect to businesses and more importantly, bureaucracy. Might be costly in the short term but in the long term, it very quickly pays itself back even without investment because of the sheer cost of paper-based bureaucracy. There's a reason Estonia is currently the most business friendly country in the world and has equivalent public services and institutions to the rest of Europe whilst having a flat tax rate which is lower than even the US (and of course, low taxes wouldn't need to be pursued, the current tax bands could be maintained whilst digitalising, leading to major budgetary surplus which could then be used for historic state investment or to start properly getting rid of a country's national debt rather than merely maintaining it).
I feel you. In Poland, we got quite digitized government and payment systems, also good to mention fast fiber/5G infrastructure. When I travel to Germany on a trip, I feel like I travel in time as well to 00s…
Indeed! I don't understand why we should reinvent the wheel when one of our members already led (successfully) the way. I feel like in the government "industry" there is no concept of "getting inspired" or even "getting curious" about what our neightbours do. That's so sad.
It's hilarious how Americans are convinced their economy is doing badly when the entire rest of the world wishes their economies were doing half as well.
It has a lot to do with what people are comparing against. Hearing that the US GDP is great is one thing, knowing that you will never own a house and you're one major illness from bankruptcy is another. Then there is comparing how it used to be possible to raise a family on a single income a few generations ago with how it's unaffordable to raise one kid on 2 incomes now. Even if a lot of macroeconomic measures are saying everything is great people are constantly aware in their day to day lives that they have basically no protection from bad luck and a much bleaker looking future than their parents and grandparents did.
It's top heavy at this point. During C19 so many small companies went belly up with larger companies eating up that space. So it's a much larger systemic problem. Plus investors squatting on resources. Not the least being places to set up shop.
It's important to point that the US economy though larger and more "performing" is also much more unequal. For those 10% that create companies, move capital, and drag the economy, there is a big 30% that lives in the streets. In the EU, inequality is lower. Though there are fewer "successful wealthy" people, there are also fewer poor.
Seriously who is doing the mathematical calculations.. the US economy only takes $4.5 trillion in receipts a year, pays a quarter of that on debt management, another quarter on it’s military, and carries $35 trillion in debt (double the eu). Survival on credit cards! If this is the bar for success then ppl are insane
The tariffs that Brussels wants to introduce cannot be called “protectionism”, because even the chairman of the WTO agrees with these measures. It is legal to impose customs duties on a company that benefits from illegal subsidies.
It is protectionism. But protectionism isn't a bad thing. It is a good thing. It is the only way to simulate a level playing field against economies you can't control.
@lellyparker protectionism is using tarrifs to artificially and unfairly increase your companies competitiveness in your markets, this is just using tarrifs to get rid of the foreign companies unfair advantage, hence not protectionist, just levelling the field
@@anjelkanja8032LOL. And what Russia is doing in Ukraine isn't an "invasion" its a "special military operation". You and every dictionary have a disagreement over the meaning of "protectionism."
@@danz1182 what??? It fits perfectly fine with the description of protectionism and why on earth do you mix in the war in Ukraine, which has nothing to do with this video or comment???
@@anjelkanja8032 You described exactly the same thing just two different ways.. Using tariffs to artificially increase the competitiveness of domestic companies by increasing the cost of Chinese EVS BY 20-40% in order to "level the playing field"
That's not even a spoiler. We just don't have the right structures for similar levels of investment into competitive things, high tech and what not. Inevitably someone tries to do something innovative in Europe, they end up taking it to the US and it ends up a 'US product' even though invented in some EU country by an European because US is where the investment money is.
@Megalomaniakaal we just have a bunch of elite oligarchs in Brussels sucking the titties of european taxpayers dry. How the fuck does 60% of my money ends in the hands of the state and i dont feel any benefit from it?
It is impossible because The EU already regulates new technologies like AI and electric cars from other countries without having created or manufactured any company of those in the continent.
Yep i worked at multiple companies in my career, and scaling outside the country is hard Infrastructure is different for example the way phone numbers postal codes and such are working is different each country souds trivial. but if you need to implement a different way to validate communicate and check for all these differences takes time and effort you want to rather spend in improving the product instead. Culture is different in each country so sales and marketing that works in country A will not work in country B or event the culture in general results that the prodcut is maybe to modern/not relevant for that country making it less worthwhile to scale. Rules and regulations is also a pain, since its hard enough to be complient and keep your product up to date on the rules of your own country. then handling the exeptions for the other countries and understanding them. Only bigger companies has the resources to hire profesional people that can handle these compliancy issues. Change of rules and regulations is also a pain i have seen and still see a lot of time and effort is spend in updating/changing the product due to regulations changing every time. While good for consumers some new regulations require 40%+ of development capacity to update the system to comply to the new rules what is basicly a big deal holding growth and spending it in just avoiding not following the rules. There are more problems but these are some examples where small and mid sized companies deal with resulting in them not able to grow into larger companies since the investment and effort is to big to overcome.
This. Compare this to the US market which is an incredibly easy country (similar size to the EU) to operate in because one of the reasons being that its consumer base, behaviors and cultures are the same basically everywhere you roam.
Good analysis, basically the problem is that we in the EU are not one nation, but many, although successfull efforts are made to unify our laws, to unify our cultures and customs is a whole different thing.
Yet most comparing the USA vs the eu/Europe undermined the fragmentation point because the usa are composed of 50 states and because old European companies managed to do it and become global players. The reasons the usa and china is overtaken us is because they are a “monolith” and we aren’t we are a bunch of friends that agree on certain points and disagree with everything else, in the eu Germany disagree with France does nyc disagree with California? Ect
@@TheIrishny Nah, the US today has an insane deficit. Much of their economy is being propped up by large deficit spending. And the US can do this since the USD is the world's reserve currency so the US can offload inflation.
energy price may still be higher than that of USA for obvious reasons. I think this price will go lower in long term since they already started use diverse source and more renewable energy. Europe is also more vulnerable any conflict in Middle East and Africa. One thing I can agree with europa needs to invest a lot into tech, auto, ai and others and should let company and start-ups use the capital freely without stupid and complicated bureaucracy
auto???? If anything you're already over-invested in auto, esp when you're implementing green & transit-oriented policies for more walkable urban environments, leading to lower car usage, and have an aging population that is not going to need as many cars.
Auto is mostly to please the Chinese that love tech and are turning to national products,usa auto industry,apple is facing the same problem. Ai we have mistral for now although consumer facing ai seems overhyped to me just like robotaxis. What capital if the people with money in Europe don’t like to open their pockets that’s why they are brought up by usa companies or move there, even Europeans invest in the sp500 not in the euronext. We have a tech sector but is mostly small and fragmented compared to USA tech companies , are you using dailymotion or RUclips, uber or delivery hero and their subsidiaries, proton or google and Microsoft services, fintech is the only that seems to escape with revolut for example still only online for app payment and it isn’t from the eu but Europe because physical payments is dominated by visa and Mastercard then you have regional players aka where our fragmentation problem appears
EU will never catch up with US, unless US drains their economy is something like ww3. This is because, economic growth is directly proportaional to energy usage. With 4-5 times of primary fuel price and 2-3 times electricity price, no matter what Europe does, won't make them compeititive. Then there is aging population issue, which EU suffers far more than US. But that's not all. There are whole political issue that put into question of how much EU is a (collection of) sovereign entity and how much it's a defacto US colony. Then comes the overarching skewed view of European population. It's kinda disgusting to see how Europeans always consider them the best, and support pupetted policies that hurt them directly.
The problem with this is it misunderstands the fundamental nature of the EU. It’s essentially a trading bloc so that the prescriptions here are really matters for national governments
But EU member states are too small to compete with countries in the modern age. The USA, China and in the Future India all have the size of the whole EU combined. And thus, having a bigger internal market and larger companies. These companies can easily invade the small European member state markets. If european countries want to stay rich and be among the top dogs of the world, then they have to unite. Otherwise Europe will become a 2nd world continent.
I think the problem is that there’s no “European economy” as such. Companies trade goods across national borders, but not services and certainly not innovative talent. You can see this even in the identity of CEOs. Germans would riot if VW hired a French CEO (what do they know about engineering?), and the French would laugh you out of the room if you proposed a German CEO of LVMH. Europeans say they want tech champions capable of competing with US, but are they really prepared to see the commanding heights of their economies controlled by executives born in Taiwan (Nvidia), India (Microsoft, Google), South Africa (Tesla, SpaceX)? European companies are less effectively (i.e. ruthlessly) managed b/c the pull of national identities in what’s supposed to be a single market is the world’s most wasteful DEI program. The disparity is even greater when you consider the equivalent of Germany, France, Denmark, etc isn’t America as a whole, but US states. Does anyone think Silicon Valley would’ve conquered the world if the unspoken assumption is only native-born Californians should be in charge? Of course, some small countries can do just fine in the modern global economy while insuring control and capital remains in local hands. See Taiwan, Israel, South Korea. The problem for Europe is it has the worst of both worlds: Whereas TSMC and Samsung are practically intertwined with government as an arm of state policy, members of the EU gave up control of their own trade, currency, and regulatory powers with none of the benefits of scale. (West Virginia is surely a loser in the 21c American economy, but that’s cushioned by all the automatic fiscal transfers its residents receive from the tax dollars of Californians, New Yorkers, and Texans.)
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom.
I plan to retire at 62 in another country outside the US that is free,safe and very cheap with a high quality of life. I could fully just rely on only my SS if I wanted to when that time arrives but I'll also have atleast one pension, a 403 (b) and a very prolific investment account with Susan Jane Christy, my FA. Retiring comfortably in the US these days is almost impossible
I know this lady you just mentioned, Susan Jane Christy. She is a licensed broker and a FINRA agent. She is popular in the US and Canada, she's really a skillful and experienced woman in that area
I went from no money to invest with to busting my a** off on Uber eats for four months to raise about $20k to start trading with Susan Jane Christy. I am at 128k right now, I'm loving that you brought her up here
I watched a video by a Finnish tech startup founder very recently, explaining why tech salaries are so much higher in the US than Europe. As he succinctly put it, "the US innovates in technology, Europe innovates in tax and regulation". European industrial policy also favours large established corporations instead of new startups. The exception to this norm is Switzerland, and the results in economic metrics are plain to see. Deregulate, cut taxes and make it worthwhile for entrepreneurs to set up shop in a European country and they'll do so.
As an entrepreneur I would disagree. There are many reasons why US startups are more successful, and if regulation is one it's at least a minor reason.
The reason is the usa investors are more risk prone,have deeper pockets and a huge market with the overall same mentality meanwhile in the eu/Europe, investors like to keep what they already have and keep the status quo, still for example the uk (not in eu) has good fintech environment, Estonia,sweden also have a good tech sector considering their size. If you conquer the USA market you are a established player but if you conquer Germany, you need to start over in France,Poland,Finland ect, how many streaming platforms theres in Europe a few of them but none dominates the continent viaplay if for the Nordic market, canal+ and others i don’t know or in the ride sharing business, the usa uber is dominant but then we have bolt (estonia), Delivery Hero owns glovo(spain)and others ,blablacar(france),freenow (Germany) ect, so overall the USA market end ups with a few dominant players for a market of 400 million and in the eu/Europe we keep a few dozens(over exaggerating) that dominate only certain countries or regions so they don’t grow. Different European countries have different regulations,laws,taxes ect despite the eu having some that applies to every country. Isn’t California regulations similar to Europe and still it is the richest state with most tech companies ect. To create a tech startup you best start in a big European country but is still smaller,poorer and tech adverse compared to the USA or start in your small European country and expand to the usa even in the usa what companies are threatening alphabet,Microsoft,meta,Netflix ect existence I don’t many and the ones that are just like European companies are hoping to be brought by them
@@pierman4858 regulation only helps the bigger and more established corporations just think about it. If you're a small business and have to go through all the regulation you have to follow just from 1 country and in order to grow you have to deal another set of regulations from another country. But for big business they can swallow the cost of hiring people just to navigate those regulations. No wonder you can't grow and have economies of scale because big business it the only one that can do it.
Uhm... just one comment on the "one area whe Europe doesn't have anything on the US at the moment"... according to the diagrams you're showing on the screen, both core inflation and interest rates are within the same space (the latter being actually lower in the EU). While GDP growth is lower in the EU indeed, this is down to a complex set of circumstances, part of which are self-inflicted, while some are down to global geopolitics (see Ukraine war, energy crisis, etc). So I'm not sure that argument holds. If there's one area where the EU constantly lags behind is R&D and innovation. As you pointed out in several videos, there are very few EU companies among the largest on the planet. Although this in itself is not a reliable measure of success and economic prowess, either.
As an American, don’t give up your rights to woo the rich. It is very hard to get by in America because we have sold our rights to big corporations & the ultrawealthy. The wealthy are doing great in America, the middle class & poor are not
The problem is in ideology. Things like subsiding industry and nurturing big corporations might not get support from European populous who already demonize large corporations and instead ask for harsher regulations
@@crosstraffic187 the inflation reduction act and chips act are post-Covid inventions, we had no such policies beforehand, and obviously already had developed our tech industries.
Problem is European has none that come close to that even if you broke Amazon, Google or Apple into ten companies each, those break-up companies still gonna be bigger and more productive than European one. Yes, I agree too big is not good but too small also not good especially if you want industrial scale-up and economy of scale.
the reason why those companies come from the US and can never come from the EU is that they can exploit their workers in the US. start-ups can demand over hours without extra pay, give no vacation days, bully their employees into coming to work even if they are sick or have a sick family member that needs some care, and the list goes on. in the EU businesses have strict rules/laws to follow, and thus they can't maximize profit over the backs of their employees. and i and most other EU citizens would rather have a healthy work-life balance than huge companies we don't even benefit from. needing "unicorn" companies or the worlds highest GDP are pointless if all the benefits/profits of it stay in the hands of a couple of dozen multi-billionaires.
Yes we do. As was stated big companies contribute dispositionally to tax and investment. Also don't forget abour big potentially money burning in first few years investments. A small or medium sized enterprise just can't have an innovation lab of a couple dozen graduates and can't build a supercomputer. At that companies need to be sufficiently large to take on investments that may have billions in upfront costs.
@@DOSFS ok cool, but it's not about making them smaller to make European ones catchup, it's to make them have less power. Greedy large corporations don't care about you what so ever.
@@ChristiaanHW Yeh the same communist bs. What exploitation are you talking about? Noone is forcing nobody to take part in a start-up. If they don't want to, they won't. What an idiotic way to look at things. That mindset will drag EU even more.
Why should we? We already have higher life expectancy, lower infant mortality, better access to education and healthcare, lower crime rates, better social safety nets, better working and living conditions, more workers' rights, better public infrastructure, and all that despite lower economic "productivity". Clearly GDP is not that relevant to, and at some point even detrimental to, indices that actually measure people's quality of life.
@@Ufgbja It is a tradeoff quite often, look at the US, which is what this video was about, and look at the regulations mentioned as an economic impediment in this video, regulations like the 40 hour work week, regulations that are the reason the majority of the population enjoy high living standards (and aren't required to work more for less, like in the US, or to work 2 jobs to be able to afford healthcare for their sick child, like in the US). Switzerland has 8 million inhabitants and its economy is heavily based on finance and luxury items. The Swiss economic model isn't something that can necessarily be scaled up to a whole continent with hundreds of millions of people, it's not a coincidence that most of the countries with extremely high per capita GDP are tiny. Overall you'll find that almost all states that have a consistently higher GDP than the large economies in western Europe are small, specialized economies (often tax havens), petrostates (benefiting from natural resources thex happen to have at the expense of the entire planet), or countries with excessive deregulation like the US, that only achieve high economic performance at the cost of it not benefiting most of their actual inhabitants.
@@Ornitholestes1 Some of what you say is true, but in terms of monetary standards of living, you absolutely do not have a higher level than the US. Only Switzerland and Luxembourg. And that includes the average working person btw, the differences in salary are huge. "excessive deregulation" The US is a high regulation state, with the compliance cost of regulation estimated at above $11k per worker per year, and that was actually from before the pandemic, so it might be loser to like $15k by now.
The US = 6,2 homicide rate. The EU = 1 homicide rate The US = 76,33 life expectancy The EU = 81,4 life expectancy The US =21 child mortality rate The EU= 6 child mortality rate The US= 30,7 obesity prevalence rate The EU = 15 obesity rate. Apparently your amazing innovation translate into a shitty quality of life. I prefer our european mediocrity. In medio stat virtus after all.
If Europe’s economy catches up to America then there would be no incentive to move to America as Europe already has better living standards and quality of life
The peace dividend is now in jeopardy with war returning to Europe, and the demands of spending more on defense without direct support of the United States at the same level as in the past. European integration has been sponsored by the United States since its conception, though notions of strategic autonomy are now jeopardizing the relationship. By and large Europe, still operates under intergovernmental frameworks in areas outside of the core competencies of the EU that will continue to hinder its economic prospects in the future. The welfare state model of Europe is not sustainable for present conditions and no amount of policy can change this as it’s related to material conditions and demographic issues. Further strengthening of supernatural institutions could mitigate much of the problems facing the continent however, the political will simply is not there.
There are no big countries in Europe. Only small countries and small countries who don't admit they are not big. The EU is a way for its members to actually have a strong position on the global stage.
If you think Europe will ever catch up you haven't been paying attention. The continent is fragmented, always was and always will be. Saying that as a European. Every EU member is doing their own thing behind the scenes. What do you think why isn't the Polish willing to wait for a proposed united European military force and rather just buy stuff from S-Korea themselves? Exactly, the Poles know that the EU is all talk no walk. Anyone relying on it for anything crucial will be waiting for a looong time and the world will pass them by.
@@chrislambaa7586 In recent years, the European Union has begun to assume geopolitical responsibilities, and to take charge of more and more industrial strategies. Times changes.
I agree with the first part of your statement. Europe is fragmented and every country has its own interests. But this is no reason to think that the EU is not more than the sum of its parts. It's ridiculously stupid to even propose that. Not to mention that FAR MORE Europeans have a better life quality than Americans. The social divide in the US has always been greater than in Europe and it keeps growing sadly everywhere, but in the US it is approaching levels seen only in developing countries.
@antoinebaldur2941 Yes, exactly. It's also easy to forget where we would be without the internal market in the EU. Brexit clearly showed all the benefits it has to be part of the EU. The power the EU has when it makes trade deals with other countries like China and the US makes us equal to them and we can no longer be pushed around.
Catching up, in what way? We in Europe generally don't want an US-style economy stripped bare from all social security and a wild west capitalism where big companies determine politics.
And without a strong economy, Russian would most definitely defeat Europe. That's the only deterent, for comparison west has spend twice as much on the Ukraine war as Russia and that's not even counting Ukraine's own expenses. When America decides Europe is not worth protecting or more importantly realises that They can't protect Europe, Israel and Taiwan all at once. (We all know that America would always choice Israel over Europe) Then Europe and would be left with a smaller economy, with political fragmentation as well as a non existent stockpile for most European nations.
If big companies determine politics that's not a capitalism problem, that's a government problem. Governments shouldn't mingle with companies and they shouldn't have the power in the first place to do anything even if they were lobbyed
@@mrintrovert5068 Military spending in Central and Western Europe is now higher than the last year of the Cold War. Europe has seen a widespread surge in military spending since the start of 2022, reaching a total of €552 billion in 2023. The increase is 16% more than the countries concerned spent in 2022, and 62% more compared to 2014, where spending was €330 billion. As for Russia: the latest planned increase in spending will take its defence budget to a record 100+ billion euro in 2025. (still only about a 5th of what Europe spends...) All in all its spending on defence and security will account for about 40% of Russia’s total government spending. Considering that Russia's economy is about the size of Italy's alone, tThe phrase that it's 'a gaspump with an army' is not that far off the mark. And as it stands only its massive government-expenses on its war with Ukraine are keeping its economy afloat. And how long it will be able to basically cannibalize the rest of its economy and population to do this, is anyones guess. But when it folds, it could go very quickly and badly. I doubt that the US would chose Isreal over Europe (if it ever needs to, which I find doubtful in itself).
@@mrintrovert5068 you can´t generalize like that. yes there are eu members whos military is in a poor state but some are quite capable. I wouldn´t underestimate the polish military for example and it is gearing up massivly. Yes the US is on another level but all russia is showing is carpetbombing with atillery and slowly progressing in a ww 1 style. It only slowly adaptes to modern warfare like drones. But yes it is slowly adapting. But europe is watching and learning as well. Unfortunatly on different levels.
@@kimwit1307 I think it’s less of a choose one or the other, it’s more that resources need to be split and the more they get split the less everyone gets. China is the true super power threat that would take the most attention especially since Taiwan’s chip industry is so strategic. The US military during ww2 was ten times its current size and we still needed the Soviets and Britain to fight the war. With the British no longer being a world spanning empire with a massive Navy and no equivalent to a Soviet Union on our side, Europe needs to fill some very large shoes. Yes it’s likely Japan would help in the Pacific, but that’s not going to be enough.
Everyone who is tech focussed knows that the the US is the place to be for tech. As such the US attracts people who are interested in getting into tech not just from European countries but from India and China (and pretty much everywhere else in the developing world - although less so from Europe). The US has a massive advantage in that it is a genuine single market - if you make it big in the US you really have made it big. I don't particularly like living in cities and my expertise is in a relatively obscure area of engineering (at least compared with the major disciplines), as a consequence I have effectively limited my career options - even though I'm a dual UK - Australian citizen. It is the same with the tech sector. If you start up a company in Germany, France or Italy (or the UK) let alone one of the smaller EU countries getting your product to a size that would allow it to be dominant on the world stage is going to be difficult. Far better to just go to the US. The best non-EU / non-US / non-UK students coming to the US, Europe or the UK will generally prefer the US if they can afford to and are able to get a place there because they know that is where the best opportunities are.
US economy might be better but few of its citizens are benefiting. The money ends up at the corporations who are barely taxed if at all and the average American works paycheck to paycheck. Dragi slams Europe’s lower productivity but if that means we need to “live to work US style” than please no.
the only people benefiting from the big tech companies in the US are the owners/shareholders and the politicians who get their pockets lined to prevent worker protection laws from being implemented. compare the average US citizen to the average citizen of EU countries (don't compare them to the EU average, because there's a lot of differences between the EU members) and most of the EU countries will have citizens who are better off, happier and a better work-life balance.
@@davidcooks2379 you are joking right? If anyone complains about taxes it's the US. In Denmark where I am from we have the highest tax in the EU and 88% of the population agrees with the tax system. That's astronomical higher than the US. Denmark has some of the highest prices in Europe and even our prices are cheap compared to the US. This is why if we change the comparison from GDP to GDP per capita and GDP per capita PPP, Europe is much closer to the US. Minimum wage in Denmark is 20 USD and hour. That's almost 3 times the minimum wage in the US. Granted this is also some of the best in Europe. So your statement is baseless and not founded in any real data.
All true, but the harsh truth is that we can't keep providing such comfortable lives for our next generations if we keep falling further behind and keep becoming less and less competitive. We have some difficult but necessary decisions to make.
Could you also do a video on the role of weak internal market demand on investment. There's a lot of talk about supply side policies to boost growth, but why would European companies invest more if there's no demand for it?
The EU needs to change some fundamental laws. It was supposed to be a democratic union of democratic member states, yet it allows authoritarian governments like Hungary in its row. There should be consequences to bascially everything Orban does, but the EU doesn't really care.
@@lifeinanutshell7147the EU is much more than a economic Union it’s a border, economy, social and political Union. The only difference from a country is that it is not federalized there is a bit more independence from member states but European Union is much more than just economy.
Poland used to have Hungary's back for years until 2022. The EU mistake was to allow any country to block any proposal. I'm sure this wasn't a problem 40 years ago but now it is as it became larger. Now countries like Slovakia and Hungary will never allow such disproportionate power to go away.
Seriously who is doing the mathematical calculations.. the US economy only takes $4.5 trillion in receipts a year, pays a quarter of that on debt management, another quarter on it’s military, and carries $35 trillion in debt (double the eu). Survival on credit cards! If this is the bar for success then ppl are insane
Yeah so the US owes the itself $27 trillion but also has a light year more responsibility than the EU. Also Europe can sit on its azz and depend on the US for protection while also not making their nato contributions and having the US foot the bill. So pretty sure Europe wouldn’t be so safe with so much help from the US and EU already admitted they wouldn’t be able to defend themselves against even Russia without a lot of help from the US.
In other words, the EU has to become a true federalized union like the United States of America, with a true and independent central government counterbalanced by true and independent member states. Whether EU citizens like it or not, their problems are a direct result of their REFUSAL to change the European Union (EU) into a United States of Europe (USE).
You think your amount of consumption,level of investement,goverment spending and trade balance all unimportant ? You have no clue what you're talking about.
Europe needs to stop starving the younger portion of the population. If people get fair wages, access to housing and tax breaks early in life, and enough free time to build families, it creates a more stable society and more motivation to work. It can also become a more attractive place for international skilled migrants to live and start businesses. Also, if people have more than the bare minimum they can take risks by starting companies, investing, innovating, etc..
I keep hearing about the US economy doing better than us. And I mean, sure, I'm sure those numbers aren't lying. But I just don't feel it. Things are fine over here.
"Norway has..." Norway has a lot of oil and natural resources. Whenever we are an economical anomaly, it usually boils down to that. Investments are almost exclusively tied to the energy and maritime industries, with a few exceptions in "safe investments" (housing etc.)
No, the reasons are 1. Poor salary for skilled jobs 2. High taxes 3. Poor effort reward curve (for above mentioned reasons, as well as social welfare state that milks high achievers) 4. Xenophobia and racism 5. Language barrier (also used to underpin the xenophobia) 6. Poor living situations (freebies for mass migrants, skilled migrants have to survive in exclusionary and racist "free market") 7. General focus on equal outcome over equal opportunity (high taxes but no transparency for recruitment or rental market)
i doubt it but the thing is the eu is multiple countries so some countries will do a good job while others will do a bad job .while in America they will all do the same thing so maybe this could end up with the eu being richer in theory
What is more important: GDP growth making the 5% wealthiest even more wealthy while 95% get increased cost of living, or assuring that most people have acceptable living standard? Compare development in the average life expectancy instead of GDP.
The U.S. GDP as of the first quarter of 2024 sits at a whopping $28.6 Trillion. The EU had a larger GDP than the United States back in 2008. But the U.S., already holding the title of the largest economy in the world by any one country, even managed to surpass the EU by the end of that year. With each passing year since 2008, the United States is not only pulling ahead of the EU, but the gap between the two has continuously increased faster every day, every month, and every year since. And this will continue for quite some time to come from the looks of it. The EU GDP as of 2024 is currently at $19.35 Trillion in comparison. The total value of 27 countries' economies combined! So to catch up, the EU would have to add another Germany and France in terms of economic output.
This is all a moot point. The EU's population is falling and aging. It is going to have to change to remain viable. The current approach simply is not sustainable with the coming demographic contraction.
Given how charming EU's policies are getting (Work longer for less, getting and raising children being even more expensive and with less time to spend with them, making dure CEO's can build ten or twenty pools with their money while average worker Joes can barely afford to eat, pay the bill and repair whatever their cheap car got broken withour sacrificing one of the three expenses, ect....) you can bet EU population will not raise thanks to birth. Whatever nefarious happens, it will be very well deserved.
@@lighting7508 Maybe not a single developed economy ever thought that pressuring the poor people, those who cared the less about difficulties in life when having children, would eventually dissuade them about the greatest joy parents can ever experience when a baby is born? Wew, who would've thought parenting would end up being too much to manage on top of the stress of a life becoming more and more absurd? I mean, people feeling blue and unable to cope with this fucked up world are SO VERY FEW.
Ummm can someone tell me why the 3 graphs in the beginning are shown as a support to his claim of usa doing so much better than the EU when in 2 of the 3 the EU is doing better and the 1st is about even.
Fairly sure 'catch up to' is american and on this side of the pond we say 'catch up with'? I say that as one of the things i enjoy about the channel is a well spoken british accent!
Why does this keep happening? blaming the EU regulations but NEVER discussing what they are. a lot are consumer protection laws, or mechanisms to prevent fraud or economic bubbles.... These regulations are not created with the aim to negatively impact businesses...
Dude, I think is exactly these European policies that are the problem. Sure, Europe should be united to help each other in economical and military terms, but today the EU, in order to justify its existence, over regulate everything. Europe is lagging behind not only the US but also China. Europe should be discussing how to catch up with China first, not the US.
And what would those politics be? The politics of open borders and rapidly rising crime? The people of Europe generally have very similar ideas, unfortunately the political elite do not.
The thing i don't understand, why do people constantly compare EU with US. EU is not a country, it's a economic and political union between 27 European countries. Starting a company and finding capital investment in a big country is always easier than in multiple countries. When you are trying to do anything in EU, you have have to expect different language barriers, laws and regulations... makes everything extremely difficult and complicated
I think it has to do with the fact that US is not exactly "a country" either they are more like a loose confederation of states with different culture sort of like the EU in that sense I suppose. It also doesn't help that the Americans are very self centred and constantly brag about how they saved Europe on their own during the Second World War 2 and how Europe would be a complete waste land if the Muricans hadn't saved Europe. However, I am an angry white man who is a fierce royalist and pro-EU, anti-American imperialist business man so I am of course biased. And I am only 34 years old. TRUMP for 2024. FIGHT, FIGHT, FIGHT.
If it were a country, like the US, with singular policy on all fronts, it would out perform the US. Right now the economy in Europe is basically 6-7 countries, and the rest are tagging along and trying their best. There is so much unused/underused resources in Europe and so much more room for economic growth, but we love to forget about Eastern Europe and all the opportunities that are still there but unused.
The EU, as an example of a group of countries under one banner is the closest comparison to America. One has members, the other has States, both examples have different laws for different parts of their Union. The United Members of Europe compared to The United States of America.
For a lot of countries within the EU it is somewhat analogous to States in the US. Labour and environmental laws differ between member states, but capital and labour can flow between and most have a single currency. Having an office in Antwerp, but conducting business in Cologne, for example, is more similar to doing business in Port Jackson from your New York office compared to trying to do business from a Sydney one.
Qualifies it with ‘at the moment’. Europe hasn’t had anything on the US economically since before the world wars - and the US spent billions rebuilding Europe (Marshall plan) post WW II. Europe values very different things and would need to change that outlook completely (not going to happen) to even start to grow at the rate the US does… forget trying to surpass that to make up the installed base difference.
The EU is in serious economic decline relative to the US and China. It cares more about regulation than innovation. I don't see any leaders in Europe changing that.
I believe that certain level of regulation is required, but I also believe that it would be more efficient to introduce and maintain them, if EU would become more centralized. We just need efficient regulations, but I don't really care about opinion of people that believe that there should be literally no regulations, because I want safe air/water/food/work and functioning government and democracy. It's easy to say like populist that we must spend less/more money, have lower/higher taxes, less/more regulations, but in the end what matters is quality of life for average person. It's about having sustainable system that finds proper balance between enforcing some rules and maintaining high productivity, while keeping it friendly for environment and society.
@@adiq94 Were you born yesterday? History has shown that centralization of power definitely doesn't work for improving the lives of ordinary people. Regulations always end up favoring existing large companies to the detriment of small or starting ones; it's how you end up with de facto monopolies. If they don't favor certain companies, then they favor certain industries. More individual freedom and responsibility is needed, not a bigger nanny state. I do agree with you that some regulation is needed (e.g.: it's a bad idea to put lead in food, water or gasoline) but most of it is just work for bureaucrats, compliance departments and ex-politicians-now-consultants making life harder for the average citizen.
Those natural gas price figures are interesting since 2023/24 is where they stabilized, and yet your graph goes to end of 2022. Price right now is 3.77 EUR/MWh ($4.14) vs $3.54/MWh. Yes it's higher in the EU, but not as crazy as 2022. Same for electricity, EU end of 2023 was down to 0.177/kWh ($19c) vs 0.15, and EU is set to drop more, plus EU's it's a bit misleading due to e.g. Italy (2nd half 2024 they're at 10c/kWh, Germany is at 7c wholesale).
Most European countries doubled in GDP between 2000 and 2008. The fundamentals are still the same. High earning, highly skilled, highly educated. This is a naive statement.
Nothing in the video about severe labour shortages is parts of a Europe, holding it back. And the US govt having large deficits, as it invests much more in its economy. The debt burden is becoming a serious issue.
I'm an American that moved to the EU. Even though I took a paycut, I feel my quality of life has risen dramatically. And I'm happy that the quality of life of other people are also high, since the majority of Americans do not reap the benefits of the high GDP. GDP is such a flawed metric.
That's good for you but the whole problem is that the European system that gives your good quality of life that you have isn't sustainable given an aging population and below replacement birth rates. Europe is going to have to change their economy eventually and that would mean "Americanising" aspects of their economy.
@@inbb510 The most realistic solution to that would be to increase (or sustain) immigration, but it is unfortunate that the EU is trending toward becoming anti-immigrant. Ultimately it reasonable that the economic policies of Europe will and should change/adjust to the times, but I believe it can be done without Americanizing. You say it's not sustainable, but neither is the American way. The middle class there is disappearing and any accident or health issue can put you into poverty. European worker protections and healthcare need to be safeguarded.
How has your quality of life improved if you are poorer than you were before? You probably could’ve switched states for much less effort and gotten the same if not better results…
@@SupremeST25 I'm actually writing this now from a hospital because my son has been in intensive care for two months. My workplace has been extremely accomodating and flexible with taking time off to support my son, with no repercussions. My wife, who still works for a US company remotely, is on the verge of losing her job. It is very refreshing to be in a society that values family life and responsibilities, especially for men. I never need to fear missing work because I (or my child) get sick. Because there's state-run healthcare, we're not living with anxiety about the costs from this experience. Aside from healthcare, I appreciate that I get a lot more vacation and time off (30 days). When I was in the US, I made more money but had half the time off to travel or to spend it. I live in a mid-sized city and I love that it is still walkable, or I can ride a bike around safely. My hometown has no bike paths (you have to use the road or the sidewalk), and even when I lived in NYC and Chicago, it was dangerous as hell. But I also appreciate European "society" as well. Because the U.S. claims to be such a meritocracy (even though it really isn't), so many people are in it for themselves. If they can swindle the government or others, they will. There's very little trust in others or institutions (which I get, because people are constantly screwed). It's a broad brush, but I feel it daily and this isn't something money can buy. I could go on and on.
@@SupremeST25 I've lived in Arizona, Colorado, Indiana, Illinois, and New York (and Singapore, China, UK, Switzerland, and now Sweden). I'm writing from a hospital where my son has been in intensive care for 2 months - I worry neither about costs, or the impact on my job. Europe is walkable and bikeable. There's public transportation. I get 30 days vacation to actually enjoy life and time with family. People actually trust each other (though sadly that's diminishing). You can't get all that with a higher salary in any state.
The answer to this is no. It would be fixable if there was a government in Brussels willing to cut the red tape and if they push the EU reform through the EU comission
Why has growth been chosen as the ultimate metric for how well people are doing? Quality of life in the US is not better what so ever and in cases is actually worth. So what is all that growth for if the only ones benefiting from it is the 1%.
@@roccociccone597 I'd argue they go hand in hand. Quality of life is nice and all but also correlate to lower birth rate and can only be (sustainably) supplemented by economic growth. Europe has an aging population and if they want future generations to enjoy the same quality of life as them, they either have to sustain the 2.1 birth rate (which is practically impossible in developed societies) or grow the economy to a point where the low birth rate won't interrupt the higher quality of life. Don't get me wrong America has a long way to catch up to reach European standards of quality of life but I'd wager Europe won't be able to sustain it with how things are going over there.
@@entonberg3945 Government regulations destroy innovation, competition, and distort market forces that create progress. The idea that bureaucrats can make better decisions for businesses and consumers than the free market is simply wrong. Regulations are a cost, so when you impose a cost on companies you punish mainly the smaller ones, thus making regulations something only big companies can withstand, creating monopolies. Every regulation, no matter how small, comes with costs, costs that are passed on to consumers in the form of higher prices and reduced choices. You can’t regulate your way into prosperity, you can only deregulate your way into competition, and competition, not government intervention, is what makes companies innovate, improve quality, and lower prices. A business’s goal is to satisfy customers at the lowest cost. A bureaucrat's goal is to enforce rules, often with no regard for the unintended consequences. The more the government regulates, the more it creates an economy of compliance, where businesses focus on avoiding penalties rather than creating value.
I wonder whether EU versus USA is a fair comparison. As both operate vastly differently: countries working together on different levels versus a unified gigantic country.
Well, you don't really have that issue in the US because US are made up with States with its own regulations. People are constantly moving to states that can give the best economic opportunity. And being single big market with homogeneous language really help tech companies to scale up really fast
Americans are just very good businessman and they know how to run a business. It's not our fault that our economy is still booming, we just know what sells in the global market.
To the detriment of the American people in general. Pharmaceutical Business is booming in profits in America. What has it done for American people? You want that in Europe? The American agriculture companies are booming with chemicals that are banned in EU and American labor is exploited. Want that in the EU? GDP and it's derivatives are a horrible measure of economic success.
Americans are good marketer’s,I already said you guys could sell ice to a eskimo,just look at the usa reused bottles craze,about been businessmen i don’t is very different , Americans seem to not understand that in n Europe already dominant players want to keep the status quo so they cozy up with politicians to make it difficult for new players with varying degree depending on what eu country, if the reason was taxes Eastern Europe would do better economically than Scandinavia meanwhile in the USA the competition even funds the little player and if they succeed they buy them out, same reason most eu governments prioritize old people rather than young people they are the ones with the most wealth and the biggest voting base
@@FrankLloydTeh Average income in us is 75k median is 60k. under 15 000 - 8.3% of the population 15 000 to 24 999 - 7.4% 25 000 to 34 999 - 7.6% 35 000 to 49 999 - 10.6% 50 000 to 74 999 - 16.2% 75 000 to 99 999 - 12.3% 100 000 to 149 999 - 16.4% 150 000 to 199 999 - 9.2% 200 000 and over - 11.9% depending where you work all your medical insurance is paid by the company even have better quality health care than EU. have better quality of life depending where you live. If you live in the major cities where all the millionaires, and rich immigrants plus rich international students wants to live the cost will just up. Just basic supply and demand. There are 22 million millionaires in us over 8% of adult population.
@@FrankLloydTeh depending where you work all your medical insurance is paid by the company even have better quality health care than EU. have better quality of life depending where you live. If you live in the major cities where all the millionaires, and rich immigrants plus rich international students wants to live the cost will just up. Just basic supply and demand. There are 22 million millionaires in us over 8% of adult population. Average income in us is 75k median is 60k. under 15 000 - 8.3% of the population 15 000 to 24 999 - 7.4% 25 000 to 34 999 - 7.6% 35 000 to 49 999 - 10.6% 50 000 to 74 999 - 16.2% 75 000 to 99 999 - 12.3% 100 000 to 149 999 - 16.4% 150 000 to 199 999 - 9.2% 200 000 and over - 11.9%
Opening a small business is not as easy in the EU vs North America. Canada is very easy and we don’t have the huge amount of red tape as in the EU. As well, Canada and the US offer competitive tax rates, where earning more money in the EU gets you taxed to death
there is a major flaw/misunderstanding at play here that is based in how GDP is measured/calculated.. under this paradigm the European economy can never "catch up" and it doesn't need to.. because the US economy is dependent on the European economy to function.. 2023 GDP data shows that 74% of US GDP is in Consumer Retail/Spending, hence the term "Consumer Economy".. it is also largely reliant on importing goods to retail, while the European economy is mostly production and export focussed.. here is the flaw: when measuring GDP we don't measure economic value by goods and services produced but by goods and services SOLD.. quick example: a European company produces a good for export to the US, meaning it sells the good to a US retailer.. the US retailer buys the good for say $1, ships it to the US and retails it there for $3.. so the same good contributes $1 to the European GDP and $3 to the US GDP although the US economy had no part in its production.. it is completely reliant on producing economies to create economic value for its own economy, yet it measures the economic value of retailing a good at 3x the value of producing it.. and that is ridiculous..
And Europe is being pushed out of its export markets by more agile Chinese and American companies like Telsa and BYD, as well as being pushed out of its domestic market as well by those same companies.
@@mrintrovert5068 if we're talking automotive and the US market, then this is not true at all.. European, especially German, automakers have "removed" the US market from their export business by building manufacturing capacity in the US.. like Toyota and Honda have done before.. by manufacturing in the Us they circumvent US tariffs on auto imports, making them even more competitive in that market.. in this case both production and retail revenue are counted towards US GDP while the actual money still ends up in Germany making the flaw even more apparent.. the same goes for the revenues of the US's fastest growing consumer retail companies --ALDI, Trader Joe's (which is also ALDI) and Lidl--.. so there is an argument to be made that European companies are taking over sectors of the US economy... instead of selling their domestic output to US retailers they simply produce and retail themselves in the US.. in taht case who cares if the revenue is counted towards US GDP, it matters where that money ends up..
@@drbenwaynewyersy9976 Europe is a balanced economy, whereas the US is a consumption-driven one. And the US is not dependent on imports, the US economy would see much higher levels of growth without the very high deficit in trade, or more pointedly, if it didn't allow free capital flows into the country, in a global environment where surplus countries predominantly obtained/maintain their surplus positions via subsidies to industry. W/o the ability to freely buy U.S. assets with the dollars they obtain, they would then either have to purchase American goods, or drive up demand for their currencies when exchanging back into them. This is true for the UK as well, very much also a consumption-skewed economy, but skewed unnaturally by these forces.
@@Cotswolds1913 are you kidding me? US Longshoremen went on strike all along the East Coast for 3 DAYS this week.. and Americans were already panickbuying for fear of a collapse in the supply chain.. while businesses large and small were fearing their merchandise for the Christmas sales would get stuck in the backlog.. that's just the East Coast.. the vast majority of US imports gets to port on the West Coast.. because that's where the Chinese vessels offload.. and we're still only talking retail ready consumer goods here.. for example, the US is 100% dependent on imports for every screw and nail it requires because there is not a single company left in the US that produces either.. the US is also simultaniously the largest producer AND by far largest importer of crude oil.. in every metric no economy is as dependent on imports and "outsourced manufacturing" (which is a fancy way of saying imports) as the US economy..
@@drbenwaynewyersy9976 if you mean vs a scenario where imports are halted overnight then sure, because our production would not be ready yet to replace it, but no sensible reformer would sketch out a transition like that. The reality is that the US economy is held back by its low domestic savings rate, which is brought low because surplus countries offload their excess savings in the U.S, which is a necessity to finance our trading deficit. We are one of the most unbalanced economies in the world, in the exact opposite vein of the way in which China is unbalanced, and our economy would do better if we pivoted away from that imbalance.
Some might consider this video highfalutin not that its impossible. Many can discuss innovation or productivity but not many can execute those ideas or policies successfullly.
which is exactly the reason why we're slow to react and have no actual vision. We need to come together as an European people and become more Federalist. It's the only way we'll stay relevant on the global stage.
@@roccociccone597 I'm not against the idea but at the same time I know a lot of people oppose further integration and that would be quite hard to overcome.
Big companies pay a lot of tax you say have you looked at the structure of most of our big companies. They have brass plate headquarters in Ireland in most cases to avoid paying taxes.
Europe doesn't have the entrepreneurial culture that America has. Europe is very risk-averse, kind of "yesterday's news" and an "open-air museum" compared to the U.S. and East Asia. Sorry, folks, but I think you know it's true.
@@soundscape26 I've spent most of the last 21 years in Europe. I like it too, obviously. I was speaking more narrowly about business and geo-economics.
Which country are u living in? Germany? If so yeah they arent what they used to be but stop thinking that one eu country represent all of us, as a scandinavian im quite happy with our lvl of inventions.
Before I started watching this video and seen the thumbnail I immediately thought the EU won’t because the politicians are so precious. Also I’m European.
Europe will never have big tech companies because company leadership is simply too backwards. In German speaking countries for example, most IT companies expect you to be fluent in German AND have the correct degrees and certificates. A talented progammer would have to learn German AND get the required certificates before he could start working ... or he could just move to America or Asia where he can get by with English and start earning money immediately, often more than in Europe. Also the European company leadership refuse to change. They complain about "Fachkräftemangel" (skilled worker shortage) all the time, but the don't drop the requirements and also don't train new people anymore. It is just an idiocracy.
The problem is: Europe struggles between letting go of their culture and heritage vs. Becoming economically efficient and progressive. The US has nothing to lose in the new world while Europe has to make a tragic choice .. unless the global economy slows down.
south korea, taiwan, china, japan, these countries did not have to let go of their cultural homogeneity in society to become competitive if that's what you're referring to.....
@@jordimg7727 there’s different stages to competitiveness as time and productivity works linearly. None of those countries you listed are still competitive but are facing the same issues as everywhere else. So has entire Europe been competitive… but Europe is moving closer and closer to union within Europe, and so that means dropping national interests for unionized interests.
I think Europe likes not being like the US. With 27 countries... it is difficult to get all the horses pulling in the same direction especially when you have the likes of Hungary, Austria and maybe Germany soon, reaching for Russia.
@@rollinwithunclepete824 sure. But it’s about staying competitive. US economy now is growing the fastest it’s ever been. So Europe has to stay competitive in the world.
Add: 4. Internal geography (mostly open, relatively flat, and crossed by navigable rivers vs. more rugged) 5. Internal critical resources 6. Population trends (EU population will fall over 3% by 2070 and age much more dramatically than US which will add almost 6%)
Language barrier is the most braindead argument against the EU. Dude, we speak English. Also we've got google translate. No, there isn't a language barrier in the EU
@@Namaru12nononono, have you ever seen morbidly obese elf? If anything, elves are east asians. And nevermind that, at least let us be orcs, I don't wanna be a hairy manlet.
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Okay, so I’ve been sitting on a $56k emergency fund for what feels like an eternity. No idea where to start with investing. But hey, maybe Europe’s economy catching up with America is a good sign, right? Hoping to finally put my money to work, just need a good headstart. Any tips?
I get where you're coming from, but I’d say take it slow with that emergency fund, especially when you’re looking to jump into investments. I’ve been there too, and what helped me the most was talking to a financial advisor. It’s not all about just jumping in, you need strategy. Find someone who knows their stuff!
"I totally hear you both! I’m also itching to start but just don’t know how to take the next step. I’ve been reading a lot, but when it comes to making decisions, I feel a bit lost. Anyone know how I can actually find a good financial advisor? I mean, I want to get it right."
"There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field, look her up."
Wow, after looking up Linda Aretha Reeves, she seems like exactly the kind of expert I need to guide me on this journey. I’m definitely going to reach out!
"Watched Linda Aretha on Bloomberg Finance Summit four years ago, and her presentation was fantastic! Really seems like someone who knows how to make things happen."
The situation is worse in the United States, where our economy is struggling to survive like a flailing fish. The U.S. economy is truly in a very poor situation right now. As a result, it experiences convulsive spasms and desperately tries to develop in whatever manner it can. Tricks, gimmicks, and rule changes are all attempts to boost the economy and keep it from collapsing, but they only provide short-term respite to people because inflation causes us to decline.
People have no choice but to believe that their currency is worth what it is. Even in a hyper-inflationary situation, individuals must continue to use their hyper-inflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
I've stuck with the popularly ‘’Sharon Ann Meny” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, I agree with her.
she appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
The EU doesn't need to nurture big companies, it needs to create an environment where small companies are easier to set up and grow. Europe has lots of big companies, but they're all dinosaurs who are generally protected by subsidies and regulation because they're seen as so important to domestic economies.
But you see, that's not in their interest. It is every "poor" politicians' dream to o ne day sell out to a megacorporation and retire.
Big problem needs big muscle. To compete against global giants you either do it like china with a lot of entry barrier or you do it with lot of money and incentive. We europeans keep using US tech and paying to US company.
easy, just build more mc donalds. next question.
That what they mean when they talk about unicorn.
Agreed. Equitable growth and boost to society creativity 👍
Won’t be the UK catching up - we still haven’t caught up with ourselves from 2008
Unfortunately, successive incompetent governments will do that to a country; and it doesn't look to be improving any time soon :(
If government ever remembers that the country extends past the M25 then maybe we'll start getting prosperous again...
@@meth3rlence Maybe leaving the biggest economic bloc wasn't such a good idea after all.
The UK is actually growing faster than pretty much all other large Euro countries.
@@TheIrishny but only because we’re already lagging behind
@@TheIrishny *"The UK is actually growing faster than pretty much all other large Euro countries."* - Who told you that? The UK is very much near the bottom of European countries when it comes to GDP growth. You can google "Annual real gross domestic product (GDP) growth rate in European countries in 2023" to see where we are.
Title: "Why Europe's Economy Could Catch Up With America"
Content: Why America is doing so much better than Europe
Meh, we aren't. My wife and I make over $150k a year and STILL can't afford a house.
@@mordant221 I'm in Europe and I DON'T make $150k NOR can I buy a house. 🤷
Is the US really doing so much better? Public debt is twice that of Germany in relation to GDP! If the US keeps throwing money at everything at the current pace, she will probably be bankrupt in ten years. Generating "economic growth" by public spending can work. But it can also backfire massively if the money is not spend on lasting things but rather on consumption.
You can buy a house at a decent place, just not at your dream place.
@@xornxenophon3652you say this but this is *bad* for Germany. Germany should absolutely borrow not for infrastructure and industry
3:57 What a terrible point. Every single example does not convey anything useful.
The productivity of Norway is tightly linked with oil. In 2014 we see the dip, and as such in 2022 they had incredible growth. Actual productivity excluding oil is similar to that of Sweden.
According to that graph, Finland hasn't reached 2005-levels of productivity. Hardly something you can call growth.
Germany is one example where there is mild productivity growth, but nothing you'd call extraordinary, knowing Germany's notorious bureaucracy.
Are you dyslexic? The point made by the video is not about growth but about high performance. So apart from your point about Norway, nothing you said is relevant
@@TrueBlueVinn Yes even in the Draghi report the "performance" or productivity has already fallen compared to the us. If you don't sort out your energy problem and productivity problem I think eu would literally break up.
I was going to write the same thing. Norway and Finland is like showing italy and greece post 2008
So isn't the US productivity linked to oil? Isn't the US one of the major oil producers?
@@nightmark2120 USA blow up the Nord Stream 2 making Europe conflict for survival with Russia inevitable, we were always a tool for America, the fact people don't understand this is concerning. The refugee crisis was created by USA meddling in the middle east, and do nothing to help.
We lost our way, we European Union were supposed to be a third force between Russia and America, we bowed down to one this is the result...
As an American in Europe, I'm sceptical. Sure, the numbers say X and Y: that productivity isn't as good, yadda yadda. But, my sceptical commentary has to do with the "so what" of economies.
Europe is much better at balancing work/life balance, ecology, and, as you mention, worker ownership.
Perhaps these things "drag" the numbers and metrics, but having better numbers at the expense of people's safety, health, and economic well being seems to be a reasonable trade off, to me.
Having paternity and maternity leave that is paid, public transit, etc etc etc just seems better.
I chose Europe for this reason.
Yes, it's also important to check the price of economic growth. Overall, the EU is doing alright, and comparing to much to the US is not healthy. The US has its strengths, that derive from its history, and most importantly, from always being one country, with one economic policy which allows easy free flow of capital around, beside no language barriers. The EU, on the other hand, is a union of different countries, with different history, and economic policies, plus some language barriers that still exist. It's way harder to raise big capitals and move them around. We can say that the EU is a best, a federation in the making, but this making will take decades, with setbacks expected. If the EU was already a federation, probably there wouldn't even be this discussion. It would be by far the most "competitive" country in the world.
America is generally better for the enviroment than Europe at this point. You’ve seen Germanys coal operations since Russia? Public transport also isn’t a quality of life indicator.
Sides that both places have their strengths and weaknesses
Except you don't need to abandon those things to keep a good economy, the US could afford all of those things if it had the political power to do so. Plenty of people in the US have all of those things.
But Europe will lose it really soon due to weak economy and aging population. Prepare yourself for collapse in Europe
These things compound. Having just 1/2 of the growth for 5-7 years would shrink the economy and population by around half. Younger people would leave since there are better opportunities abroad.
Europe as it is now, cannot take anymore shocks to its system without radical changes. It doesn’t have the fiscal space nor the robust and deep economic roots to pull from.
Remember, Argentina was one of the largest economies in the world, now it is barely the largest in Latin America. South Korea was the poorest in the world, now it’s one of the wealthiest. The margins and numbers do matter.
Europe has large companies, we dont need more of them. We need small businesses an innovation. Here in norway it's a nightmare to run and start a company, it's like the government wants you to only work for the established large companies they are ok with. It's a suffocation of innovation and competition, not a lack of major companies.
Another quick note, companies here just dont hire people. In the US (where im from) there are like 5000 internships available in Houston alone here in Norway (where im studying) there are 300 in the *entire country* for the 2025 summer internship season. That is INSANE.
This is essentially corruption and it's everywhere.
We do it in the UK but slightly differently. It's really easy to setup a micro business, but the jump from a kitchen table business to a ten employee business is made nearly impossible by the government.
Big companies pay good money for this, they don't want hungry competition now do they.
Wouldn't you want those start ups to become major companies?
@@manusbyrne8972 of course, the more competitive the UK is the more it sells abroad, which means normal people like me can be taxed less.
I run a small business.. I was keen to have staff but soon I realised I needed to spend weeks on paperwork like employer side tax for staff wages who might not make a profit, or sorting out the pension of some 18 year olds..
In the end I concluded the UK government could fuck itself.
I now just use freelance staff in Argentina and Mexico.
Young people in the UK can carry on voting for governments who pile regulations on small business and see how far it gets them.
@@manusbyrne8972 Would you? Medium sized, maybe. But there's always a danger with any power (public or private) getting too big.
A very effective long term solution to the EU's problems would be copying Estonia's digitalisation programs with respect to businesses and more importantly, bureaucracy. Might be costly in the short term but in the long term, it very quickly pays itself back even without investment because of the sheer cost of paper-based bureaucracy. There's a reason Estonia is currently the most business friendly country in the world and has equivalent public services and institutions to the rest of Europe whilst having a flat tax rate which is lower than even the US (and of course, low taxes wouldn't need to be pursued, the current tax bands could be maintained whilst digitalising, leading to major budgetary surplus which could then be used for historic state investment or to start properly getting rid of a country's national debt rather than merely maintaining it).
that's so right, we don't need more money burned for useless shit. We need to reform and thereby already encourage more private investment.
I feel you. In Poland, we got quite digitized government and payment systems, also good to mention fast fiber/5G infrastructure. When I travel to Germany on a trip, I feel like I travel in time as well to 00s…
Indeed! I don't understand why we should reinvent the wheel when one of our members already led (successfully) the way. I feel like in the government "industry" there is no concept of "getting inspired" or even "getting curious" about what our neightbours do. That's so sad.
Yes!
Moving from Estonia to Sweden was like traveling 30 years back in time regarding digitalization.
It's hilarious how Americans are convinced their economy is doing badly when the entire rest of the world wishes their economies were doing half as well.
IKR
It has a lot to do with what people are comparing against.
Hearing that the US GDP is great is one thing, knowing that you will never own a house and you're one major illness from bankruptcy is another. Then there is comparing how it used to be possible to raise a family on a single income a few generations ago with how it's unaffordable to raise one kid on 2 incomes now. Even if a lot of macroeconomic measures are saying everything is great people are constantly aware in their day to day lives that they have basically no protection from bad luck and a much bleaker looking future than their parents and grandparents did.
It's top heavy at this point. During C19 so many small companies went belly up with larger companies eating up that space. So it's a much larger systemic problem. Plus investors squatting on resources. Not the least being places to set up shop.
It's important to point that the US economy though larger and more "performing" is also much more unequal. For those 10% that create companies, move capital, and drag the economy, there is a big 30% that lives in the streets. In the EU, inequality is lower. Though there are fewer "successful wealthy" people, there are also fewer poor.
Seriously who is doing the mathematical calculations.. the US economy only takes $4.5 trillion in receipts a year, pays a quarter of that on debt management, another quarter on it’s military, and carries $35 trillion in debt (double the eu).
Survival on credit cards! If this is the bar for success then ppl are insane
The tariffs that Brussels wants to introduce cannot be called “protectionism”, because even the chairman of the WTO agrees with these measures. It is legal to impose customs duties on a company that benefits from illegal subsidies.
It is protectionism. But protectionism isn't a bad thing. It is a good thing. It is the only way to simulate a level playing field against economies you can't control.
@lellyparker protectionism is using tarrifs to artificially and unfairly increase your companies competitiveness in your markets, this is just using tarrifs to get rid of the foreign companies unfair advantage, hence not protectionist, just levelling the field
@@anjelkanja8032LOL. And what Russia is doing in Ukraine isn't an "invasion" its a "special military operation". You and every dictionary have a disagreement over the meaning of "protectionism."
@@danz1182 what???
It fits perfectly fine with the description of protectionism and why on earth do you mix in the war in Ukraine, which has nothing to do with this video or comment???
@@anjelkanja8032 You described exactly the same thing just two different ways.. Using tariffs to artificially increase the competitiveness of domestic companies by increasing the cost of Chinese EVS BY 20-40% in order to "level the playing field"
Spoiler, it wont
That's not even a spoiler. We just don't have the right structures for similar levels of investment into competitive things, high tech and what not. Inevitably someone tries to do something innovative in Europe, they end up taking it to the US and it ends up a 'US product' even though invented in some EU country by an European because US is where the investment money is.
@Megalomaniakaal we just have a bunch of elite oligarchs in Brussels sucking the titties of european taxpayers dry. How the fuck does 60% of my money ends in the hands of the state and i dont feel any benefit from it?
You guys also cause a civil war when you have to work more than 35 hours a week.
Spoiler, it will
@@Random-ne3ed From Europe, and I genuinely have worked 16 to 20 hour days. And weekends to boot.
It is impossible because The EU already regulates new technologies like AI and electric cars from other countries without having created or manufactured any company of those in the continent.
Exactly
We are richer than America. We regulate our debt in the EU too. This is not the US of the 90s with 33% debt to gdp.
the avg European is much poorer than the avg American
@@SupremeST25 in terms of purchasing power or solely based on income
@@Joey-ct8bm , you can't really generalise to be honest. Italy and Greece have bigger debt to GDP ratio than the US does.
Yep i worked at multiple companies in my career, and scaling outside the country is hard
Infrastructure is different for example the way phone numbers postal codes and such are working is different each country souds trivial. but if you need to implement a different way to validate communicate and check for all these differences takes time and effort you want to rather spend in improving the product instead.
Culture is different in each country so sales and marketing that works in country A will not work in country B or event the culture in general results that the prodcut is maybe to modern/not relevant for that country making it less worthwhile to scale.
Rules and regulations is also a pain, since its hard enough to be complient and keep your product up to date on the rules of your own country. then handling the exeptions for the other countries and understanding them. Only bigger companies has the resources to hire profesional people that can handle these compliancy issues.
Change of rules and regulations is also a pain i have seen and still see a lot of time and effort is spend in updating/changing the product due to regulations changing every time. While good for consumers some new regulations require 40%+ of development capacity to update the system to comply to the new rules what is basicly a big deal holding growth and spending it in just avoiding not following the rules. There are more problems but these are some examples where small and mid sized companies deal with resulting in them not able to grow into larger companies since the investment and effort is to big to overcome.
This. Compare this to the US market which is an incredibly easy country (similar size to the EU) to operate in because one of the reasons being that its consumer base, behaviors and cultures are the same basically everywhere you roam.
Good analysis, basically the problem is that we in the EU are not one nation, but many, although successfull efforts are made to unify our laws, to unify our cultures and customs is a whole different thing.
Yet most comparing the USA vs the eu/Europe undermined the fragmentation point because the usa are composed of 50 states and because old European companies managed to do it and become global players.
The reasons the usa and china is overtaken us is because they are a “monolith” and we aren’t we are a bunch of friends that agree on certain points and disagree with everything else, in the eu Germany disagree with France does nyc disagree with California? Ect
Austerity really screwed Europe over, after 2008.
forty years of neo-liberal globalist 'business friendly' policy making
America also had austerity.
@@TheIrishny not to the same extent. America, still had the government investing in infrastructure.
@@TheIrishny Nah, the US today has an insane deficit. Much of their economy is being propped up by large deficit spending. And the US can do this since the USD is the world's reserve currency so the US can offload inflation.
Europoor Cope.
It won't. Next question.
energy price may still be higher than that of USA for obvious reasons. I think this price will go lower in long term since they already started use diverse source and more renewable energy. Europe is also more vulnerable any conflict in Middle East and Africa. One thing I can agree with europa needs to invest a lot into tech, auto, ai and others and should let company and start-ups use the capital freely without stupid and complicated bureaucracy
auto???? If anything you're already over-invested in auto, esp when you're implementing green & transit-oriented policies for more walkable urban environments, leading to lower car usage, and have an aging population that is not going to need as many cars.
Auto is mostly to please the Chinese that love tech and are turning to national products,usa auto industry,apple is facing the same problem.
Ai we have mistral for now although consumer facing ai seems overhyped to me just like robotaxis.
What capital if the people with money in Europe don’t like to open their pockets that’s why they are brought up by usa companies or move there, even Europeans invest in the sp500 not in the euronext.
We have a tech sector but is mostly small and fragmented compared to USA tech companies , are you using dailymotion or RUclips, uber or delivery hero and their subsidiaries, proton or google and Microsoft services, fintech is the only that seems to escape with revolut for example still only online for app payment and it isn’t from the eu but Europe because physical payments is dominated by visa and Mastercard then you have regional players aka where our fragmentation problem appears
Renewable energy was the biggest hoax in EU. Worked for 5 years in that sector, now it's almost dead.
EU will never catch up with US, unless US drains their economy is something like ww3. This is because, economic growth is directly proportaional to energy usage. With 4-5 times of primary fuel price and 2-3 times electricity price, no matter what Europe does, won't make them compeititive. Then there is aging population issue, which EU suffers far more than US.
But that's not all. There are whole political issue that put into question of how much EU is a (collection of) sovereign entity and how much it's a defacto US colony. Then comes the overarching skewed view of European population. It's kinda disgusting to see how Europeans always consider them the best, and support pupetted policies that hurt them directly.
The problem with this is it misunderstands the fundamental nature of the EU. It’s essentially a trading bloc so that the prescriptions here are really matters for national governments
But EU member states are too small to compete with countries in the modern age. The USA, China and in the Future India all have the size of the whole EU combined. And thus, having a bigger internal market and larger companies. These companies can easily invade the small European member state markets. If european countries want to stay rich and be among the top dogs of the world, then they have to unite. Otherwise Europe will become a 2nd world continent.
I think the problem is that there’s no “European economy” as such. Companies trade goods across national borders, but not services and certainly not innovative talent. You can see this even in the identity of CEOs. Germans would riot if VW hired a French CEO (what do they know about engineering?), and the French would laugh you out of the room if you proposed a German CEO of LVMH. Europeans say they want tech champions capable of competing with US, but are they really prepared to see the commanding heights of their economies controlled by executives born in Taiwan (Nvidia), India (Microsoft, Google), South Africa (Tesla, SpaceX)? European companies are less effectively (i.e. ruthlessly) managed b/c the pull of national identities in what’s supposed to be a single market is the world’s most wasteful DEI program.
The disparity is even greater when you consider the equivalent of Germany, France, Denmark, etc isn’t America as a whole, but US states. Does anyone think Silicon Valley would’ve conquered the world if the unspoken assumption is only native-born Californians should be in charge?
Of course, some small countries can do just fine in the modern global economy while insuring control and capital remains in local hands. See Taiwan, Israel, South Korea. The problem for Europe is it has the worst of both worlds: Whereas TSMC and Samsung are practically intertwined with government as an arm of state policy, members of the EU gave up control of their own trade, currency, and regulatory powers with none of the benefits of scale. (West Virginia is surely a loser in the 21c American economy, but that’s cushioned by all the automatic fiscal transfers its residents receive from the tax dollars of Californians, New Yorkers, and Texans.)
Very well said
Europe can't maintain that level of investment
The descriptions at the beginning, completely correct
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I watched a video by a Finnish tech startup founder very recently, explaining why tech salaries are so much higher in the US than Europe. As he succinctly put it, "the US innovates in technology, Europe innovates in tax and regulation". European industrial policy also favours large established corporations instead of new startups. The exception to this norm is Switzerland, and the results in economic metrics are plain to see.
Deregulate, cut taxes and make it worthwhile for entrepreneurs to set up shop in a European country and they'll do so.
As an entrepreneur I would disagree. There are many reasons why US startups are more successful, and if regulation is one it's at least a minor reason.
But how are they going to pay for the welfare state?
The reason is the usa investors are more risk prone,have deeper pockets and a huge market with the overall same mentality meanwhile in the eu/Europe, investors like to keep what they already have and keep the status quo, still for example the uk (not in eu) has good fintech environment, Estonia,sweden also have a good tech sector considering their size.
If you conquer the USA market you are a established player but if you conquer Germany, you need to start over in France,Poland,Finland ect, how many streaming platforms theres in Europe a few of them but none dominates the continent viaplay if for the Nordic market, canal+ and others i don’t know or in the ride sharing business, the usa uber is dominant but then we have bolt (estonia), Delivery Hero owns glovo(spain)and others ,blablacar(france),freenow (Germany) ect, so overall the USA market end ups with a few dominant players for a market of 400 million and in the eu/Europe we keep a few dozens(over exaggerating) that dominate only certain countries or regions so they don’t grow.
Different European countries have different regulations,laws,taxes ect despite the eu having some that applies to every country.
Isn’t California regulations similar to Europe and still it is the richest state with most tech companies ect.
To create a tech startup you best start in a big European country but is still smaller,poorer and tech adverse compared to the USA or start in your small European country and expand to the usa even in the usa what companies are threatening alphabet,Microsoft,meta,Netflix ect existence I don’t many and the ones that are just like European companies are hoping to be brought by them
Oceangate. The red tape in Europe is there for a reason.
@@pierman4858 regulation only helps the bigger and more established corporations just think about it. If you're a small business and have to go through all the regulation you have to follow just from 1 country and in order to grow you have to deal another set of regulations from another country. But for big business they can swallow the cost of hiring people just to navigate those regulations. No wonder you can't grow and have economies of scale because big business it the only one that can do it.
Uhm... just one comment on the "one area whe Europe doesn't have anything on the US at the moment"... according to the diagrams you're showing on the screen, both core inflation and interest rates are within the same space (the latter being actually lower in the EU). While GDP growth is lower in the EU indeed, this is down to a complex set of circumstances, part of which are self-inflicted, while some are down to global geopolitics (see Ukraine war, energy crisis, etc). So I'm not sure that argument holds. If there's one area where the EU constantly lags behind is R&D and innovation. As you pointed out in several videos, there are very few EU companies among the largest on the planet. Although this in itself is not a reliable measure of success and economic prowess, either.
yeah, why was interest rate even on that.
As an American, don’t give up your rights to woo the rich. It is very hard to get by in America because we have sold our rights to big corporations & the ultrawealthy. The wealthy are doing great in America, the middle class & poor are not
The problem is in ideology. Things like subsiding industry and nurturing big corporations might not get support from European populous who already demonize large corporations and instead ask for harsher regulations
The US didn't get it's market leading position in technology industries through subsidizing.
@@Cotswolds1913 The inflation reduction act and the chips act. If that's not subsidizing industry, then I don't know what is.
@@Cotswolds1913 It absolutely did.
@@crosstraffic187 the inflation reduction act and chips act are post-Covid inventions, we had no such policies beforehand, and obviously already had developed our tech industries.
@@hyhhy no, and you know how I know you don’t know anything to the contrary? You won’t be able to mention a single example of it.
Do we really wants another Amazon, Google or Apple?
I'd rather see all these big companies broken up, than creating even more of them.
Problem is European has none that come close to that even if you broke Amazon, Google or Apple into ten companies each, those break-up companies still gonna be bigger and more productive than European one. Yes, I agree too big is not good but too small also not good especially if you want industrial scale-up and economy of scale.
the reason why those companies come from the US and can never come from the EU is that they can exploit their workers in the US.
start-ups can demand over hours without extra pay, give no vacation days, bully their employees into coming to work even if they are sick or have a sick family member that needs some care, and the list goes on.
in the EU businesses have strict rules/laws to follow, and thus they can't maximize profit over the backs of their employees.
and i and most other EU citizens would rather have a healthy work-life balance than huge companies we don't even benefit from.
needing "unicorn" companies or the worlds highest GDP are pointless if all the benefits/profits of it stay in the hands of a couple of dozen multi-billionaires.
Yes we do. As was stated big companies contribute dispositionally to tax and investment. Also don't forget abour big potentially money burning in first few years investments. A small or medium sized enterprise just can't have an innovation lab of a couple dozen graduates and can't build a supercomputer. At that companies need to be sufficiently large to take on investments that may have billions in upfront costs.
@@DOSFS ok cool, but it's not about making them smaller to make European ones catchup, it's to make them have less power. Greedy large corporations don't care about you what so ever.
@@ChristiaanHW Yeh the same communist bs. What exploitation are you talking about? Noone is forcing nobody to take part in a start-up. If they don't want to, they won't. What an idiotic way to look at things. That mindset will drag EU even more.
Why should we? We already have higher life expectancy, lower infant mortality, better access to education and healthcare, lower crime rates, better social safety nets, better working and living conditions, more workers' rights, better public infrastructure, and all that despite lower economic "productivity". Clearly GDP is not that relevant to, and at some point even detrimental to, indices that actually measure people's quality of life.
Its not a tradeoff, u can have both. Look at the Swiss, they got high productivity AND high living standards.
@@Ufgbja It is a tradeoff quite often, look at the US, which is what this video was about, and look at the regulations mentioned as an economic impediment in this video, regulations like the 40 hour work week, regulations that are the reason the majority of the population enjoy high living standards (and aren't required to work more for less, like in the US, or to work 2 jobs to be able to afford healthcare for their sick child, like in the US).
Switzerland has 8 million inhabitants and its economy is heavily based on finance and luxury items. The Swiss economic model isn't something that can necessarily be scaled up to a whole continent with hundreds of millions of people, it's not a coincidence that most of the countries with extremely high per capita GDP are tiny.
Overall you'll find that almost all states that have a consistently higher GDP than the large economies in western Europe are small, specialized economies (often tax havens), petrostates (benefiting from natural resources thex happen to have at the expense of the entire planet), or countries with excessive deregulation like the US, that only achieve high economic performance at the cost of it not benefiting most of their actual inhabitants.
And when America understands that it can't protect Europe, Israel and Taiwan. Europe would go bankrupt pretty soon, or fall under Russian influence.
@@Ornitholestes1 Some of what you say is true, but in terms of monetary standards of living, you absolutely do not have a higher level than the US. Only Switzerland and Luxembourg. And that includes the average working person btw, the differences in salary are huge.
"excessive deregulation"
The US is a high regulation state, with the compliance cost of regulation estimated at above $11k per worker per year, and that was actually from before the pandemic, so it might be loser to like $15k by now.
You’re worse in half of those.
The US = innovation
The EU = mediocrity
The US = 6,2 homicide rate.
The EU = 1 homicide rate
The US = 76,33 life expectancy
The EU = 81,4 life expectancy
The US =21 child mortality rate
The EU= 6 child mortality rate
The US= 30,7 obesity prevalence rate
The EU = 15 obesity rate.
Apparently your amazing innovation translate into a shitty quality of life. I prefer our european mediocrity. In medio stat virtus after all.
US innovation is done by asians jews and germans. Rest are dum as 💩
US = consumer exploitation
EU = consumer protection
US = worker exploitation
EU = worker protection
@@lellyparkeryou realize worker protections are supposed to make them more productive right 😂😂😂 yet the EU is less productive
@@antoniotorcoli5740all that and still less productive you're getting it backwards
If Europe’s economy catches up to America then there would be no incentive to move to America as Europe already has better living standards and quality of life
Just need to sort out the illegal migrations!!!
Economy works against living standards which is why Europe is better in those sectors
The peace dividend is now in jeopardy with war returning to Europe, and the demands of spending more on defense without direct support of the United States at the same level as in the past. European integration has been sponsored by the United States since its conception, though notions of strategic autonomy are now jeopardizing the relationship. By and large Europe, still operates under intergovernmental frameworks in areas outside of the core competencies of the EU that will continue to hinder its economic prospects in the future. The welfare state model of Europe is not sustainable for present conditions and no amount of policy can change this as it’s related to material conditions and demographic issues. Further strengthening of supernatural institutions could mitigate much of the problems facing the continent however, the political will simply is not there.
As someone who has lived in both Europe & the U.S, They're both basically the same imo. Both have their Pros & Cons.
the incentive to move to america is that europe isnt a continent with freedom
Funny you have to lump together an ENTIRE continent of countries to "compete" with 1 country... the USA. hahaaha
There are no big countries in Europe. Only small countries and small countries who don't admit they are not big. The EU is a way for its members to actually have a strong position on the global stage.
If you think Europe will ever catch up you haven't been paying attention. The continent is fragmented, always was and always will be. Saying that as a European. Every EU member is doing their own thing behind the scenes. What do you think why isn't the Polish willing to wait for a proposed united European military force and rather just buy stuff from S-Korea themselves? Exactly, the Poles know that the EU is all talk no walk. Anyone relying on it for anything crucial will be waiting for a looong time and the world will pass them by.
@@manwiththeredface7821 I think you need to read more about the EU have actually done. I think you would be surprised.
@@chrislambaa7586 In recent years, the European Union has begun to assume geopolitical responsibilities, and to take charge of more and more industrial strategies. Times changes.
I agree with the first part of your statement. Europe is fragmented and every country has its own interests. But this is no reason to think that the EU is not more than the sum of its parts. It's ridiculously stupid to even propose that. Not to mention that FAR MORE Europeans have a better life quality than Americans. The social divide in the US has always been greater than in Europe and it keeps growing sadly everywhere, but in the US it is approaching levels seen only in developing countries.
@antoinebaldur2941 Yes, exactly.
It's also easy to forget where we would be without the internal market in the EU. Brexit clearly showed all the benefits it has to be part of the EU. The power the EU has when it makes trade deals with other countries like China and the US makes us equal to them and we can no longer be pushed around.
Catching up, in what way? We in Europe generally don't want an US-style economy stripped bare from all social security and a wild west capitalism where big companies determine politics.
And without a strong economy, Russian would most definitely defeat Europe. That's the only deterent, for comparison west has spend twice as much on the Ukraine war as Russia and that's not even counting Ukraine's own expenses.
When America decides Europe is not worth protecting or more importantly realises that They can't protect Europe, Israel and Taiwan all at once. (We all know that America would always choice Israel over Europe) Then Europe and would be left with a smaller economy, with political fragmentation as well as a non existent stockpile for most European nations.
If big companies determine politics that's not a capitalism problem, that's a government problem. Governments shouldn't mingle with companies and they shouldn't have the power in the first place to do anything even if they were lobbyed
@@mrintrovert5068 Military spending in Central and Western Europe is now higher than the last year of the Cold War. Europe has seen a widespread surge in military spending since the start of 2022, reaching a total of €552 billion in 2023. The increase is 16% more than the countries concerned spent in 2022, and 62% more compared to 2014, where spending was €330 billion. As for Russia: the latest planned increase in spending will take its defence budget to a record 100+ billion euro in 2025. (still only about a 5th of what Europe spends...) All in all its spending on defence and security will account for about 40% of Russia’s total government spending.
Considering that Russia's economy is about the size of Italy's alone, tThe phrase that it's 'a gaspump with an army' is not that far off the mark. And as it stands only its massive government-expenses on its war with Ukraine are keeping its economy afloat. And how long it will be able to basically cannibalize the rest of its economy and population to do this, is anyones guess. But when it folds, it could go very quickly and badly.
I doubt that the US would chose Isreal over Europe (if it ever needs to, which I find doubtful in itself).
@@mrintrovert5068 you can´t generalize like that. yes there are eu members whos military is in a poor state but some are quite capable. I wouldn´t underestimate the polish military for example and it is gearing up massivly. Yes the US is on another level but all russia is showing is carpetbombing with atillery and slowly progressing in a ww 1 style. It only slowly adaptes to modern warfare like drones. But yes it is slowly adapting. But europe is watching and learning as well. Unfortunatly on different levels.
@@kimwit1307 I think it’s less of a choose one or the other, it’s more that resources need to be split and the more they get split the less everyone gets. China is the true super power threat that would take the most attention especially since Taiwan’s chip industry is so strategic. The US military during ww2 was ten times its current size and we still needed the Soviets and Britain to fight the war.
With the British no longer being a world spanning empire with a massive Navy and no equivalent to a Soviet Union on our side, Europe needs to fill some very large shoes. Yes it’s likely Japan would help in the Pacific, but that’s not going to be enough.
Everyone who is tech focussed knows that the the US is the place to be for tech. As such the US attracts people who are interested in getting into tech not just from European countries but from India and China (and pretty much everywhere else in the developing world - although less so from Europe). The US has a massive advantage in that it is a genuine single market - if you make it big in the US you really have made it big.
I don't particularly like living in cities and my expertise is in a relatively obscure area of engineering (at least compared with the major disciplines), as a consequence I have effectively limited my career options - even though I'm a dual UK - Australian citizen. It is the same with the tech sector. If you start up a company in Germany, France or Italy (or the UK) let alone one of the smaller EU countries getting your product to a size that would allow it to be dominant on the world stage is going to be difficult.
Far better to just go to the US. The best non-EU / non-US / non-UK students coming to the US, Europe or the UK will generally prefer the US if they can afford to and are able to get a place there because they know that is where the best opportunities are.
US economy might be better but few of its citizens are benefiting. The money ends up at the corporations who are barely taxed if at all and the average American works paycheck to paycheck. Dragi slams Europe’s lower productivity but if that means we need to “live to work US style” than please no.
the only people benefiting from the big tech companies in the US are the owners/shareholders and the politicians who get their pockets lined to prevent worker protection laws from being implemented.
compare the average US citizen to the average citizen of EU countries (don't compare them to the EU average, because there's a lot of differences between the EU members) and most of the EU countries will have citizens who are better off, happier and a better work-life balance.
Draghi did not say to copy the american model!
Have you seen the size of the average American house? 😂
@@davidcooks2379 you are joking right?
If anyone complains about taxes it's the US. In Denmark where I am from we have the highest tax in the EU and 88% of the population agrees with the tax system. That's astronomical higher than the US.
Denmark has some of the highest prices in Europe and even our prices are cheap compared to the US.
This is why if we change the comparison from GDP to GDP per capita and GDP per capita PPP, Europe is much closer to the US.
Minimum wage in Denmark is 20 USD and hour. That's almost 3 times the minimum wage in the US.
Granted this is also some of the best in Europe.
So your statement is baseless and not founded in any real data.
All true, but the harsh truth is that we can't keep providing such comfortable lives for our next generations if we keep falling further behind and keep becoming less and less competitive. We have some difficult but necessary decisions to make.
Answer is no .
Infact the EU situation will get worse if the political situation stays the same.
Looking at "nurturing big companies" - sensible as though that would be, I don't see that as a vote winner in most European elections.
Could you also do a video on the role of weak internal market demand on investment. There's a lot of talk about supply side policies to boost growth, but why would European companies invest more if there's no demand for it?
The EU needs to change some fundamental laws. It was supposed to be a democratic union of democratic member states, yet it allows authoritarian governments like Hungary in its row. There should be consequences to bascially everything Orban does, but the EU doesn't really care.
I thought the EU was supposed to be an economic union, not bureaucratic.
And if they did the same thing when PiS was in power in Poland, then Europe would have collapsed by now.
@@lifeinanutshell7147the EU is much more than a economic Union it’s a border, economy, social and political Union. The only difference from a country is that it is not federalized there is a bit more independence from member states but European Union is much more than just economy.
I think it's less they don't care, and more it's difficult to punish Orban within the current framework of the EU
Poland used to have Hungary's back for years until 2022. The EU mistake was to allow any country to block any proposal. I'm sure this wasn't a problem 40 years ago but now it is as it became larger. Now countries like Slovakia and Hungary will never allow such disproportionate power to go away.
Good video, high energy costs and too many regulations are big problems
EU is cooked. You’re slowly becoming core territory of Pax Americana.
Welcome to success Europe
Plus theyre crappy birth rate
Europe is becoming the middle east......
Seriously who is doing the mathematical calculations.. the US economy only takes $4.5 trillion in receipts a year, pays a quarter of that on debt management, another quarter on it’s military, and carries $35 trillion in debt (double the eu).
Survival on credit cards! If this is the bar for success then ppl are insane
Yeah so the US owes the itself $27 trillion but also has a light year more responsibility than the EU. Also Europe can sit on its azz and depend on the US for protection while also not making their nato contributions and having the US foot the bill. So pretty sure Europe wouldn’t be so safe with so much help from the US and EU already admitted they wouldn’t be able to defend themselves against even Russia without a lot of help from the US.
Europe’s doing ok by PPP, pretty much tracking America. Money & Macro channel (Joeri Schasfoort) did a video on this last week.
By PPP, China is a 30% bigger economy than the US already. And Russia is becoming the #4 economy in the world after China, the US and India.
@@hyhhy - this is about Europe, not dictatorships with fake data
In other words, the EU has to become a true federalized union like the United States of America, with a true and independent central government counterbalanced by true and independent member states. Whether EU citizens like it or not, their problems are a direct result of their REFUSAL to change the European Union (EU) into a United States of Europe (USE).
GDP measures almost everything except what's important. We are chasing the wrong thing
And yet idiots like TLDR keep banging that same drum.
Gotta think of the billionaires.
oh yeah we got top tier armchair economists here
You think your amount of consumption,level of investement,goverment spending and trade balance all unimportant ? You have no clue what you're talking about.
@@Patrick-y4d1z What tf does the national income has to do with billionaire specifically,you're the idiot.
@@mathyeuxsommet3119
Literally none of those things are GDP.
Europe needs to stop starving the younger portion of the population. If people get fair wages, access to housing and tax breaks early in life, and enough free time to build families, it creates a more stable society and more motivation to work. It can also become a more attractive place for international skilled migrants to live and start businesses. Also, if people have more than the bare minimum they can take risks by starting companies, investing, innovating, etc..
I keep hearing about the US economy doing better than us. And I mean, sure, I'm sure those numbers aren't lying. But I just don't feel it. Things are fine over here.
"Norway has..." Norway has a lot of oil and natural resources. Whenever we are an economical anomaly, it usually boils down to that. Investments are almost exclusively tied to the energy and maritime industries, with a few exceptions in "safe investments" (housing etc.)
No, the reasons are
1. Poor salary for skilled jobs
2. High taxes
3. Poor effort reward curve (for above mentioned reasons, as well as social welfare state that milks high achievers)
4. Xenophobia and racism
5. Language barrier (also used to underpin the xenophobia)
6. Poor living situations (freebies for mass migrants, skilled migrants have to survive in exclusionary and racist "free market")
7. General focus on equal outcome over equal opportunity (high taxes but no transparency for recruitment or rental market)
i doubt it but the thing is the eu is multiple countries so some countries will do a good job while others will do a bad job .while in America they will all do the same thing so maybe this could end up with the eu being richer in theory
What is more important: GDP growth making the 5% wealthiest even more wealthy while 95% get increased cost of living, or assuring that most people have acceptable living standard? Compare development in the average life expectancy instead of GDP.
Same is in EU
Just don’t be poor
Eurocope
@@Ardiantothehulk I am European and I agree this is just Eurocope
this not about increasing GDP its about increasing productivity smartass
The U.S. GDP as of the first quarter of 2024 sits at a whopping $28.6 Trillion.
The EU had a larger GDP than the United States back in 2008. But the U.S., already holding the title of the largest economy in the world by any one country, even managed to surpass the EU by the end of that year.
With each passing year since 2008, the United States is not only pulling ahead of the EU, but the gap between the two has continuously increased faster every day, every month, and every year since.
And this will continue for quite some time to come from the looks of it.
The EU GDP as of 2024 is currently at $19.35 Trillion in comparison. The total value of 27 countries' economies combined!
So to catch up, the EU would have to add another Germany and France in terms of economic output.
This is all a moot point. The EU's population is falling and aging. It is going to have to change to remain viable. The current approach simply is not sustainable with the coming demographic contraction.
I don't think many Europeans understand this and think their welfare state can just work in a vacuum.
Given how charming EU's policies are getting (Work longer for less, getting and raising children being even more expensive and with less time to spend with them, making dure CEO's can build ten or twenty pools with their money while average worker Joes can barely afford to eat, pay the bill and repair whatever their cheap car got broken withour sacrificing one of the three expenses, ect....) you can bet EU population will not raise thanks to birth. Whatever nefarious happens, it will be very well deserved.
@@padriandusk7107 not a single developed economy has figured out how to increase the birthrate.
@@lighting7508 Israel
@@lighting7508 Maybe not a single developed economy ever thought that pressuring the poor people, those who cared the less about difficulties in life when having children, would eventually dissuade them about the greatest joy parents can ever experience when a baby is born?
Wew, who would've thought parenting would end up being too much to manage on top of the stress of a life becoming more and more absurd? I mean, people feeling blue and unable to cope with this fucked up world are SO VERY FEW.
Ummm can someone tell me why the 3 graphs in the beginning are shown as a support to his claim of usa doing so much better than the EU when in 2 of the 3 the EU is doing better and the 1st is about even.
Fairly sure 'catch up to' is american and on this side of the pond we say 'catch up with'? I say that as one of the things i enjoy about the channel is a well spoken british accent!
Why does this keep happening? blaming the EU regulations but NEVER discussing what they are. a lot are consumer protection laws, or mechanisms to prevent fraud or economic bubbles.... These regulations are not created with the aim to negatively impact businesses...
this channel is America right wing shill lol
Europe need to be United. We need European Politics not self-centred national ones
what could go wrong right
Dude, I think is exactly these European policies that are the problem. Sure, Europe should be united to help each other in economical and military terms, but today the EU, in order to justify its existence, over regulate everything. Europe is lagging behind not only the US but also China. Europe should be discussing how to catch up with China first, not the US.
Looks like the exact opposite is happening. Everyone is getting anti-immigrant and closing off borders etc.
No, we don't need to become the new usa. Europe is good as a confederation, not United.
And what would those politics be? The politics of open borders and rapidly rising crime? The people of Europe generally have very similar ideas, unfortunately the political elite do not.
"big companies generally pay a lot of tax"..
Goes on to talk a subsidies for companies within 20 seconds.
The thing i don't understand, why do people constantly compare EU with US. EU is not a country, it's a economic and political union between 27 European countries. Starting a company and finding capital investment in a big country is always easier than in multiple countries. When you are trying to do anything in EU, you have have to expect different language barriers, laws and regulations... makes everything extremely difficult and complicated
Because the EU was born for and aspires to become something like the US.
I think it has to do with the fact that US is not exactly "a country" either they are more like a loose confederation of states with different culture sort of like the EU in that sense I suppose. It also doesn't help that the Americans are very self centred and constantly brag about how they saved Europe on their own during the Second World War 2 and how Europe would be a complete waste land if the Muricans hadn't saved Europe.
However, I am an angry white man who is a fierce royalist and pro-EU, anti-American imperialist business man so I am of course biased. And I am only 34 years old. TRUMP for 2024. FIGHT, FIGHT, FIGHT.
If it were a country, like the US, with singular policy on all fronts, it would out perform the US. Right now the economy in Europe is basically 6-7 countries, and the rest are tagging along and trying their best. There is so much unused/underused resources in Europe and so much more room for economic growth, but we love to forget about Eastern Europe and all the opportunities that are still there but unused.
The EU, as an example of a group of countries under one banner is the closest comparison to America. One has members, the other has States, both examples have different laws for different parts of their Union. The United Members of Europe compared to The United States of America.
For a lot of countries within the EU it is somewhat analogous to States in the US. Labour and environmental laws differ between member states, but capital and labour can flow between and most have a single currency. Having an office in Antwerp, but conducting business in Cologne, for example, is more similar to doing business in Port Jackson from your New York office compared to trying to do business from a Sydney one.
Qualifies it with ‘at the moment’. Europe hasn’t had anything on the US economically since before the world wars - and the US spent billions rebuilding Europe (Marshall plan) post WW II. Europe values very different things and would need to change that outlook completely (not going to happen) to even start to grow at the rate the US does… forget trying to surpass that to make up the installed base difference.
It can't
0:28 Heyyyyyyyy!!!!!!!
WE ONLY EAT FAST FOOD
The EU constantly shoots itself in the foot…….
taxes are too high. Try investing in European traded ADR stocks and look at how much they take out in taxes from the dividends
The EU is in serious economic decline relative to the US and China. It cares more about regulation than innovation. I don't see any leaders in Europe changing that.
I believe that certain level of regulation is required, but I also believe that it would be more efficient to introduce and maintain them, if EU would become more centralized. We just need efficient regulations, but I don't really care about opinion of people that believe that there should be literally no regulations, because I want safe air/water/food/work and functioning government and democracy. It's easy to say like populist that we must spend less/more money, have lower/higher taxes, less/more regulations, but in the end what matters is quality of life for average person. It's about having sustainable system that finds proper balance between enforcing some rules and maintaining high productivity, while keeping it friendly for environment and society.
@@adiq94 Were you born yesterday? History has shown that centralization of power definitely doesn't work for improving the lives of ordinary people. Regulations always end up favoring existing large companies to the detriment of small or starting ones; it's how you end up with de facto monopolies. If they don't favor certain companies, then they favor certain industries. More individual freedom and responsibility is needed, not a bigger nanny state.
I do agree with you that some regulation is needed (e.g.: it's a bad idea to put lead in food, water or gasoline) but most of it is just work for bureaucrats, compliance departments and ex-politicians-now-consultants making life harder for the average citizen.
Those natural gas price figures are interesting since 2023/24 is where they stabilized, and yet your graph goes to end of 2022.
Price right now is 3.77 EUR/MWh ($4.14) vs $3.54/MWh. Yes it's higher in the EU, but not as crazy as 2022.
Same for electricity, EU end of 2023 was down to 0.177/kWh ($19c) vs 0.15, and EU is set to drop more, plus EU's it's a bit misleading due to e.g. Italy (2nd half 2024 they're at 10c/kWh, Germany is at 7c wholesale).
I think it may be too late, Europe lost its opportunity in the 2000's, compared to china who took its opportunity in the 2000's and 2010's.
Most European countries doubled in GDP between 2000 and 2008. The fundamentals are still the same. High earning, highly skilled, highly educated. This is a naive statement.
@@Charlie43348Means nothing with automation
Nothing in the video about severe labour shortages is parts of a Europe, holding it back. And the US govt having large deficits, as it invests much more in its economy. The debt burden is becoming a serious issue.
I'm an American that moved to the EU. Even though I took a paycut, I feel my quality of life has risen dramatically. And I'm happy that the quality of life of other people are also high, since the majority of Americans do not reap the benefits of the high GDP. GDP is such a flawed metric.
That's good for you but the whole problem is that the European system that gives your good quality of life that you have isn't sustainable given an aging population and below replacement birth rates.
Europe is going to have to change their economy eventually and that would mean "Americanising" aspects of their economy.
@@inbb510 The most realistic solution to that would be to increase (or sustain) immigration, but it is unfortunate that the EU is trending toward becoming anti-immigrant. Ultimately it reasonable that the economic policies of Europe will and should change/adjust to the times, but I believe it can be done without Americanizing. You say it's not sustainable, but neither is the American way. The middle class there is disappearing and any accident or health issue can put you into poverty. European worker protections and healthcare need to be safeguarded.
How has your quality of life improved if you are poorer than you were before? You probably could’ve switched states for much less effort and gotten the same if not better results…
@@SupremeST25 I'm actually writing this now from a hospital because my son has been in intensive care for two months. My workplace has been extremely accomodating and flexible with taking time off to support my son, with no repercussions. My wife, who still works for a US company remotely, is on the verge of losing her job. It is very refreshing to be in a society that values family life and responsibilities, especially for men. I never need to fear missing work because I (or my child) get sick. Because there's state-run healthcare, we're not living with anxiety about the costs from this experience.
Aside from healthcare, I appreciate that I get a lot more vacation and time off (30 days). When I was in the US, I made more money but had half the time off to travel or to spend it.
I live in a mid-sized city and I love that it is still walkable, or I can ride a bike around safely. My hometown has no bike paths (you have to use the road or the sidewalk), and even when I lived in NYC and Chicago, it was dangerous as hell.
But I also appreciate European "society" as well. Because the U.S. claims to be such a meritocracy (even though it really isn't), so many people are in it for themselves. If they can swindle the government or others, they will. There's very little trust in others or institutions (which I get, because people are constantly screwed). It's a broad brush, but I feel it daily and this isn't something money can buy. I could go on and on.
@@SupremeST25 I've lived in Arizona, Colorado, Indiana, Illinois, and New York (and Singapore, China, UK, Switzerland, and now Sweden).
I'm writing from a hospital where my son has been in intensive care for 2 months - I worry neither about costs, or the impact on my job. Europe is walkable and bikeable. There's public transportation. I get 30 days vacation to actually enjoy life and time with family. People actually trust each other (though sadly that's diminishing). You can't get all that with a higher salary in any state.
The answer to this is no. It would be fixable if there was a government in Brussels willing to cut the red tape and if they push the EU reform through the EU comission
Much more regulation and red tape. There are sometimes greater benefits to it, but it does hinder growth.
Why has growth been chosen as the ultimate metric for how well people are doing? Quality of life in the US is not better what so ever and in cases is actually worth. So what is all that growth for if the only ones benefiting from it is the 1%.
Regulations are there for a reason, and its usually to protect us, the people.
@@roccociccone597 I agree. I probably should of phrased my comment better.
@@roccociccone597 I'd argue they go hand in hand. Quality of life is nice and all but also correlate to lower birth rate and can only be (sustainably) supplemented by economic growth. Europe has an aging population and if they want future generations to enjoy the same quality of life as them, they either have to sustain the 2.1 birth rate (which is practically impossible in developed societies) or grow the economy to a point where the low birth rate won't interrupt the higher quality of life.
Don't get me wrong America has a long way to catch up to reach European standards of quality of life but I'd wager Europe won't be able to sustain it with how things are going over there.
@@entonberg3945 Government regulations destroy innovation, competition, and distort market forces that create progress. The idea that bureaucrats can make better decisions for businesses and consumers than the free market is simply wrong. Regulations are a cost, so when you impose a cost on companies you punish mainly the smaller ones, thus making regulations something only big companies can withstand, creating monopolies.
Every regulation, no matter how small, comes with costs, costs that are passed on to consumers in the form of higher prices and reduced choices. You can’t regulate your way into prosperity, you can only deregulate your way into competition, and competition, not government intervention, is what makes companies innovate, improve quality, and lower prices.
A business’s goal is to satisfy customers at the lowest cost. A bureaucrat's goal is to enforce rules, often with no regard for the unintended consequences.
The more the government regulates, the more it creates an economy of compliance, where businesses focus on avoiding penalties rather than creating value.
6:21 Maybe because because we have such thingy as labour laws and privacy protection measures
I wonder whether EU versus USA is a fair comparison. As both operate vastly differently: countries working together on different levels versus a unified gigantic country.
Some might argue that managing a big country is sometimes more challenging than managing small countries.
Well, you don't really have that issue in the US because US are made up with States with its own regulations. People are constantly moving to states that can give the best economic opportunity. And being single big market with homogeneous language really help tech companies to scale up really fast
Maybe not but it's the only comparison we have.
...and why it most definitely won't.
Americans are just very good businessman and they know how to run a business. It's not our fault that our economy is still booming, we just know what sells in the global market.
they know how to run a business, not how to run a country that's for damn sure
To the detriment of the American people in general. Pharmaceutical Business is booming in profits in America. What has it done for American people? You want that in Europe? The American agriculture companies are booming with chemicals that are banned in EU and American labor is exploited. Want that in the EU? GDP and it's derivatives are a horrible measure of economic success.
Americans are good marketer’s,I already said you guys could sell ice to a eskimo,just look at the usa reused bottles craze,about been businessmen i don’t is very different , Americans seem to not understand that in n Europe already dominant players want to keep the status quo so they cozy up with politicians to make it difficult for new players with varying degree depending on what eu country, if the reason was taxes Eastern Europe would do better economically than Scandinavia meanwhile in the USA the competition even funds the little player and if they succeed they buy them out, same reason most eu governments prioritize old people rather than young people they are the ones with the most wealth and the biggest voting base
@@FrankLloydTeh Average income in us is 75k median is 60k.
under 15 000 - 8.3% of the population
15 000 to 24 999 - 7.4%
25 000 to 34 999 - 7.6%
35 000 to 49 999 - 10.6%
50 000 to 74 999 - 16.2%
75 000 to 99 999 - 12.3%
100 000 to 149 999 - 16.4%
150 000 to 199 999 - 9.2%
200 000 and over - 11.9%
depending where you work all your medical insurance is paid by the company even have better quality health care than EU. have better quality of life depending where you live. If you live in the major cities where all the millionaires, and rich immigrants plus rich international students wants to live the cost will just up. Just basic supply and demand.
There are 22 million millionaires in us over 8% of adult population.
@@FrankLloydTeh
depending where you work all your medical insurance is paid by the company even have better quality health care than EU. have better quality of life depending where you live. If you live in the major cities where all the millionaires, and rich immigrants plus rich international students wants to live the cost will just up. Just basic supply and demand.
There are 22 million millionaires in us over 8% of adult population.
Average income in us is 75k median is 60k.
under 15 000 - 8.3% of the population
15 000 to 24 999 - 7.4%
25 000 to 34 999 - 7.6%
35 000 to 49 999 - 10.6%
50 000 to 74 999 - 16.2%
75 000 to 99 999 - 12.3%
100 000 to 149 999 - 16.4%
150 000 to 199 999 - 9.2%
200 000 and over - 11.9%
Widening since 2008? That's almost 20 years now, they'll have a lot of catching up to do.
Opening a small business is not as easy in the EU vs North America. Canada is very easy and we don’t have the huge amount of red tape as in the EU. As well, Canada and the US offer competitive tax rates, where earning more money in the EU gets you taxed to death
Nonsense.
Simple: technical recovery of EUR USD exchange rate, 5 to 10 years cycle. Then value gdp in USD. It works even without any growth.
there is a major flaw/misunderstanding at play here that is based in how GDP is measured/calculated..
under this paradigm the European economy can never "catch up" and it doesn't need to.. because the US economy is dependent on the European economy to function.. 2023 GDP data shows that 74% of US GDP is in Consumer Retail/Spending, hence the term "Consumer Economy"..
it is also largely reliant on importing goods to retail, while the European economy is mostly production and export focussed..
here is the flaw:
when measuring GDP we don't measure economic value by goods and services produced but by goods and services SOLD..
quick example:
a European company produces a good for export to the US, meaning it sells the good to a US retailer.. the US retailer buys the good for say $1, ships it to the US and retails it there for $3..
so the same good contributes $1 to the European GDP and $3 to the US GDP although the US economy had no part in its production.. it is completely reliant on producing economies to create economic value for its own economy, yet it measures the economic value of retailing a good at 3x the value of producing it..
and that is ridiculous..
And Europe is being pushed out of its export markets by more agile Chinese and American companies like Telsa and BYD, as well as being pushed out of its domestic market as well by those same companies.
@@mrintrovert5068 if we're talking automotive and the US market, then this is not true at all..
European, especially German, automakers have "removed" the US market from their export business by building manufacturing capacity in the US.. like Toyota and Honda have done before..
by manufacturing in the Us they circumvent US tariffs on auto imports, making them even more competitive in that market..
in this case both production and retail revenue are counted towards US GDP while the actual money still ends up in Germany making the flaw even more apparent..
the same goes for the revenues of the US's fastest growing consumer retail companies --ALDI, Trader Joe's (which is also ALDI) and Lidl--..
so there is an argument to be made that European companies are taking over sectors of the US economy...
instead of selling their domestic output to US retailers they simply produce and retail themselves in the US..
in taht case who cares if the revenue is counted towards US GDP, it matters where that money ends up..
@@drbenwaynewyersy9976 Europe is a balanced economy, whereas the US is a consumption-driven one. And the US is not dependent on imports, the US economy would see much higher levels of growth without the very high deficit in trade, or more pointedly, if it didn't allow free capital flows into the country, in a global environment where surplus countries predominantly obtained/maintain their surplus positions via subsidies to industry.
W/o the ability to freely buy U.S. assets with the dollars they obtain, they would then either have to purchase American goods, or drive up demand for their currencies when exchanging back into them. This is true for the UK as well, very much also a consumption-skewed economy, but skewed unnaturally by these forces.
@@Cotswolds1913 are you kidding me?
US Longshoremen went on strike all along the East Coast for 3 DAYS this week..
and Americans were already panickbuying for fear of a collapse in the supply chain..
while businesses large and small were fearing their merchandise for the Christmas sales would get stuck in the backlog..
that's just the East Coast..
the vast majority of US imports gets to port on the West Coast.. because that's where the Chinese vessels offload..
and we're still only talking retail ready consumer goods here..
for example, the US is 100% dependent on imports for every screw and nail it requires because there is not a single company left in the US that produces either..
the US is also simultaniously the largest producer AND by far largest importer of crude oil..
in every metric no economy is as dependent on imports and "outsourced manufacturing" (which is a fancy way of saying imports) as the US economy..
@@drbenwaynewyersy9976 if you mean vs a scenario where imports are halted overnight then sure, because our production would not be ready yet to replace it, but no sensible reformer would sketch out a transition like that. The reality is that the US economy is held back by its low domestic savings rate, which is brought low because surplus countries offload their excess savings in the U.S, which is a necessity to finance our trading deficit.
We are one of the most unbalanced economies in the world, in the exact opposite vein of the way in which China is unbalanced, and our economy would do better if we pivoted away from that imbalance.
Some might consider this video highfalutin not that its impossible. Many can discuss innovation or productivity but not many can execute those ideas or policies successfullly.
The EU is not a country nor even a federation so these comparisons will always be faulty.
which is exactly the reason why we're slow to react and have no actual vision. We need to come together as an European people and become more Federalist. It's the only way we'll stay relevant on the global stage.
@@roccociccone597 I'm not against the idea but at the same time I know a lot of people oppose further integration and that would be quite hard to overcome.
@@roccociccone597no we do not, I like to keep my country.
Federalism isn’t popular imo, if Germany and France still fight to this day, people will see it as a threat to national identity
Big companies pay a lot of tax you say have you looked at the structure of most of our big companies. They have brass plate headquarters in Ireland in most cases to avoid paying taxes.
Europe doesn't have the entrepreneurial culture that America has. Europe is very risk-averse, kind of "yesterday's news" and an "open-air museum" compared to the U.S. and East Asia. Sorry, folks, but I think you know it's true.
@@jps0117 We also have a much better work/life balance. We're fine being an "open air museum" thanks.
@@soundscape26 I've spent most of the last 21 years in Europe. I like it too, obviously. I was speaking more narrowly about business and geo-economics.
Which country are u living in? Germany? If so yeah they arent what they used to be but stop thinking that one eu country represent all of us, as a scandinavian im quite happy with our lvl of inventions.
@@nenasiek I lived 7 years in Germany and quite a lot of time in Eastern Europe. Yes, Scandinavia is a bright spot.
Northwestern Europe is much more advanced than murica
Not with the current skepticism towards technology and AI, especially in southern Europe
The audacity of blaming the national governments for overregulation while the EU itself is mandating most of it.
Before I started watching this video and seen the thumbnail I immediately thought the EU won’t because the politicians are so precious.
Also I’m European.
Europe will never have big tech companies because company leadership is simply too backwards. In German speaking countries for example, most IT companies expect you to be fluent in German AND have the correct degrees and certificates. A talented progammer would have to learn German AND get the required certificates before he could start working ... or he could just move to America or Asia where he can get by with English and start earning money immediately, often more than in Europe. Also the European company leadership refuse to change. They complain about "Fachkräftemangel" (skilled worker shortage) all the time, but the don't drop the requirements and also don't train new people anymore. It is just an idiocracy.
Doesn't the government force those companies to only hire people with degrees or certificates?
again you put a mirrored image of Macron on the thumbnail 😂
The problem is: Europe struggles between letting go of their culture and heritage vs. Becoming economically efficient and progressive. The US has nothing to lose in the new world while Europe has to make a tragic choice .. unless the global economy slows down.
south korea, taiwan, china, japan, these countries did not have to let go of their cultural homogeneity in society to become competitive if that's what you're referring to.....
@@jordimg7727 there’s different stages to competitiveness as time and productivity works linearly. None of those countries you listed are still competitive but are facing the same issues as everywhere else.
So has entire Europe been competitive… but Europe is moving closer and closer to union within Europe, and so that means dropping national interests for unionized interests.
I think Europe likes not being like the US. With 27 countries... it is difficult to get all the horses pulling in the same direction especially when you have the likes of Hungary, Austria and maybe Germany soon, reaching for Russia.
@@rollinwithunclepete824 sure. But it’s about staying competitive. US economy now is growing the fastest it’s ever been. So Europe has to stay competitive in the world.
Quality of Life is way more important than making money
most of the differences in GDP go down to exchange rates
Europeans will literally do anything except reverse austerity measures 🤦♀️
Is that a fire detector beep at 3:23-24??????
The EU can't
1. Language barrier.
2. To many regulations.
3. FINES rule the EU.
Add:
4. Internal geography (mostly open, relatively flat, and crossed by navigable rivers vs. more rugged)
5. Internal critical resources
6. Population trends (EU population will fall over 3% by 2070 and age much more dramatically than US which will add almost 6%)
Language barrier is the most braindead argument against the EU. Dude, we speak English. Also we've got google translate.
No, there isn't a language barrier in the EU
@@ArashdeepSingh-cd9qv you are indian
@@MibomTali-cg9eo I'm an Indian-Greek person. Ευχαριστώ πολύ!
@@ArashdeepSingh-cd9qv ok
Good example why those „hard economic numbers“ like GDP or stock index don’t really mean much in a normals day life.
Since when does Apple or Google pay taxes?
EU could have been even stronger with UK as a member. Sadly, UK let its ego take the wheel, and didn't see the logic behind strength in number.
0:08 so, europeans = elves, americans = dwarves ?
Nah, elves make the very best. All the best technology comes from the USA.
It's more like elves & dwarves = Americans
hobbits = europeans
@@Namaru12 lmao
@@Namaru12nononono, have you ever seen morbidly obese elf? If anything, elves are east asians.
And nevermind that, at least let us be orcs, I don't wanna be a hairy manlet.
dream on...