The Problem with Europe's Economy | Economy of Europe | Econ
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- Опубликовано: 21 дек 2023
- The EU stands as the world's second-largest #economy, housing both advanced economies excelling in competitiveness, innovation, and productivity, and those still catching up. Over the past two decades, a general trend has emerged: rapid economic growth in Central and Eastern European countries that joined the #EU, while big economies experienced sluggish growth rates.
The region's aging population, prioritizing free time and job security over higher earnings, has contributed to slow economic and productivity growth. Beyond these challenges, a more fundamental problem is affecting the overall economy, impacting its growth, innovation, and competitiveness. #economy #europe #recession
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You are awesome :)
next time do your fucking research of which countries are in the EU!
Hello, I just subscribed to your channel. Could you please do a video on tamil nadus's economy.
Hello blogger, can you please add a simplified Chinese subtitle to the video? I am very interested in your video but I am troubled because I cannot read English.
You forgot asml in the Netherlands, that company is so far ahead in technology the usa can only dream about it.
As a Portuguese citizen, I love how Portugal was neither included in the advanced economies of Europe, nor the ones who are catching up. Truly a weak and useless economy for europe.
ahahaha tamos fodidos
Este video é uma porcaria: esqueceram-se que foi o petróleo que fez a diferença@@goncaloaraujo6644
Há petróleo no Algarve?
yeah who cares about the numbers of the portuguese economy being above the european average in growth in the last 4 years this while controlling the deficit ( meanwhile france italy poland and even germany have high deficits) . Rigth wingers are always going to "think" that portugal sucks and has no future ( as long as their party isnt in power of course) ou seja tens o cachecol partidario tão apertado á volta do pescoço que o sangue não flui até ao cerebro. Não gostasb de Portugal desaparece! Farto de idiotas que gostam mais de ideologias do que do pais!
We all know Portuguese economy sucks, its a well know joke in the EU... If it wasn't for tourism the country would be a Romania in the West
Growth will get worse after nhr changes.
This is not unique to Europe. It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.
I understand how you feel. It's a little bit difficult to navigate things these days. You don't wanna lose whatever is left. I may suggest that you find a financial advisor who could give you thorough advice on how to go if you want to go the investment route. Also, the fact your business failed doesn't mean you should give up.
That's right. I have tried many failed businesses and it's just a step further. Don't despair. But to add, if you do decide to use a financial advisor, it's best you use someone who understands your special needs and can work with you. I learnt this from experience before finally finding one I can stick with. Now I make six figures from my investments alone, and even more from my businesses.
Thank you for the advice. When you say financial advisor, are you talking about hedge funds? And how do I get in touch with one?
Hedge funds are good, but their large size make them very bureaucratic. You could find most independent financial advisors on the internet. For instance, I work with *Sharon Louise Count,* and she has a website. I'm sure there are other good ones. Just do your research.
I think you made a bad investment. A lot of people do. Remember - don't put all your eggs in one basket.
I'm in the UK and have been investing for years. I have reached a point where my £450k portfolio seems to have been stagnant despite the market gains. I could benefit from financial advice to improve my portfolio and maximize returns.
Everyone needs a Margin of Safety in their portfolios. While I can't offer personalized advice, consulting a fiduciary advisor is crucial for sound portfolio restructuring.
De-risk your portfolio, shore up your core holdings, and take some profits while balancing your portfolio allocations. I have been investing for 11 years, 5 with a financial advisor, I've achieved a 10x return compared to DIY efforts, totaling nearly $2m ROI. My best yet.
Your advisor must be really good. How I can get in touch? I have to start investing as I feel inflation is eating into my nest egg.
Kristin Amber Landis is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary 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.!!
Amber Dawn Brummit is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
Could you possibly recommend a trustworthy advisor you've consulted with?
Credits to 'Natalie Lynn Fisk' she has a web presence, so you can simply
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.
Europe has made continual, small, but real, choices to slow economic growth. Germany's decisions to abandon nuclear power is an example, but there are hundreds of small restrictions that limit its growth.
And you will get neither
Apparently you do not read news so you don’t know the reason they abandoned nuclear energy. They had no option die to renewable energy. Nuclear power stations cannot turn on and off. So when renewable energy was high they had a problem. So they needed another plan that would allow them to increase/decrease quickly.
Nuclear is a base load producer. But so is coal. They have simply switched from nuclear to coal.@@solmak47
@@Jk-qx7gmno you dont how do you think we will pay for all of does social welfare programs with a backwards economy
@@abrahamserouya9786we do and will continue to have comfortable lives for all.
In today's economy, assistance is critical if we are to survive. I was really hopeful about my investments this year but all my plans have been disoriented, I've been studying the stock market and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market. Any recommendations?
Clearly the recommendation is switch all your savings to stock. If you are stuck in a 401k or some regulated savings buy micro-strategy, which is essentially a bitcoin purchase hidden as a stock.
I grew to a 7 figure well-diversified portfolio and still receiving about 30k in dividends. I only buy quality firms, anticipate to hold them regardless of what happens, pay up but not too much, keep track, sell only when necessary, and be ready to course correct. also ignore the forecasts and market views which are at best entertaining but completely useless. ever grateful to Stacie Lynn Winson my F.A...
I have seen a lot about FAs and actually want to consult some pro. How did you go about it? Is yours any good?
Finding financial advisors like Amanda Kathryn Sachs who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Every time I talked about system improvements to increase productivity in European companies I get feedback that an improving system will not help. It baffles me, that they have a strong aversion to investment
do you think EU ai act could be the turning point?
Maybe your suggestions for improvements are just bad.
I think in these kind of topics it is important to at least mention the debt-to-GDP ratio differences. A HUGE reason for why the USA hasn't seen a decline in GDP yet the past few years is because the Fed has been pumping loads of money into the US Dollar system, which is of course a huge contribution to overall GDP growth and all other benefits that come with it(low unemployment, high population consumption, high investment). US debt-GDP ratio is now in the 120s, while Europes ratio is declining and now in the low 90s. That is a 30 percentage point difference. The fundamental reason for this is the huge bust Europes (Southern) economies saw after the 2008 crisis, which has resulted in being way more careful in fabricated boom cycles because of debt. Japan has had the same problem in the late 80s of course, and China is now living on the edge as their private debt/GDP ratio has risen sharply since the early 2010s. I guess the trade-off for governments is which risks the're willing to take to bring their economy to the next level. Boosting money supply and economic growth can have huge advantages, but the bust you make is way worse if the boom was caused by more debt.
Compare the S&P 500 chart and the FED's QE charts: you need a microscope to see any difference....
They print $1000, this is pumped into the system, somebody then buys for $1000 something from China and then everybody is happy as the US GDP is $1000 up....US economy = voodoo economy.
Lots of things that are very important are not mentioned in this video. Very superficial.
lol china is having deflation not inflation, also china already burst their real estate bubble prematurely, its not going to end up like japan, japan was destroyed by the plaza accord, china willingly devalued their currency in advance to prepare for war. and the future drop
@@3lmatbf the US has similar debt to GDP ratio to most of Western Europe save Germany
the US prints the dollar. Debt is meaningless to them
Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
It's a delicate season now, so you can do little or nothing on your own. Hence I’ll suggest you get yourself a financial expert that can provide you with valuable financial information and assistance
Very true! I've been able to scale from $50K to $189k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns
I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
Is that so? China is doing terribly right now. China is still having trouble from Covid and the economic effects of the lockdowns. Furthermore, China's GDP number is a lie, even China admitted it was "manmade". China will be in decline faster than Japan.
I love economics. More than any subject the way statistics and math directly correlated to global * and local variables. The political side of it. Everything! I feel like if you understand economics you understand the world and world history. It’s beautiful tbh atleast to me.
Couldn't agree more, I'm glad other people feel the same way
in 2008 the EUR:USD was at 1.60. Today it's at 1.05. That's a 50% appreciation which explains 90% of the divergence in nominal economic growth.
This depreciation didn't came on it's own. And this does affect the standard of living, wage growth etc
This is overly simplistic
Let’s talk about Europe’s economy, shall we? I mean, it’s like a giant puzzle where nobody bothered to read the instructions. You’ve got countries like Germany, France, and the UK trying to work together, but it’s like herding cats - one minute they’re all in line, the next they’re off chasing a mouse.
And then you’ve got the whole Eurozone situation - it’s like a bad breakup that just won’t go away. Greece keeps asking for money, Italy’s playing hard to get, and poor Spain is stuck in the middle trying to mediate. It’s like a reality show called “Keeping Up with the Euro Kardashians” - drama, intrigue, and a whole lot of financial fancy footwork.
But hey, at least Europe has some great perks, right? Like the ability to travel between countries without changing currencies - that’s like a coupon for free money! You can buy a French baguette in Paris and a Spanish paella in Barcelona, all on the same credit card. Who needs financial stability when you can have a gastronomic adventure?
And let’s not forget the charm of European bureaucracy - it’s like a finely-tuned machine that’s missing a few gears. You’ve got rules upon rules, regulations upon regulations, and a whole lot of paperwork just waiting to bog you down. It’s like a game of economic Jenga - one wrong move and the whole tower comes crashing down.
So, here’s to Europe’s economy - a rollercoaster ride of financial fiascos, economic escapades, and a whole lot of head-scratching moments. Who needs Netflix when you’ve got the drama of the Eurozone, right? Cheers to the continent where the only thing predictable is the unpredictability!
Exchange rates have nothing to do with growth, only inflation. Japan during it's meteoric rise in the 80's had a quickly devaluing yen
@@joaocustodio7705 This statement is partially incorrect. Exchange rates can actually have an impact on economic growth in addition to inflation. A rapidly devaluing currency, such as the yen in Japan in the 1980s, can actually benefit a country's export industry as their products become more competitively priced on the global market. This can lead to increased economic growth as exports increase and businesses experience higher revenues. However, a rapidly devaluing currency can also lead to inflation as the cost of imported goods rises, which can have negative effects on the overall economy. So, while exchange rates may not directly cause economic growth, they can certainly have an impact on a country's economic performance.
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
Sure, investing is plain-sailing with the aid of an invt-specialist, thus I've always delegated my excesses ever since the rona-outbreak in January 2020 using a shrewd advisor, and my investments have compounded by at least 300%, summing up $820k ROI as of today.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over $745k working with an investment coach for more than two years.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’AILEEN GERTRUDE TIPPY” for about five years now, and her performance has been consistently impressive.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Also over the top regulations - only EU can regulate an industry they don't have yet (AI).
Exactly why thr EU will never compete in any shape with US except for luxury.
US wants domination of AI and So do China and they want it to grow.
We let Google grow THEN we regulated here in US.
Exactly why thr EU will never compete in any shape with US except for luxury.
US wants domination of AI and So do China and they want it to grow.
We let Google grow THEN we regulated here in US.
Exactly why thr EU will never compete in any shape with US except for luxury.
US wants domination of AI and So do China and they want it to grow.
We let Google grow THEN we regulated here in US.
Regulation is in reality protectionism.
@@John-qy9nw protectionism is fine, even free-est of the free ones do that eg. USA, however, EU is so much of a regulation mess you don't see much innovation there nowadays.
Europe does have a good standard of living because of the "momentum" of their economy but once that begins to slip, their healthcare and other things will also dip.
Because all those packages of welfare, entitlements and social security policies all costs a huge amount of money, thus often requires high taxes from their citizens and businesses
@@ZETAPLUSA70and high rates of Taxation motivate their business to move to the US, and other countries.
Overall tax rates in US and EU are quite similar, and US spends roughly 2 times more on healthcare than the EU. So that's probably not it. A generally more flexible economy, more risk-taking is my best guess. Also economic growth in the EU has slipped lower on the agenda in recent decades due to the harmful side effects it produces at this point
How far can America go on with sky-high inequalities? Last time I checked it's America that faces hordes of shoplifters emptying entire stores in a few minutes.
@@Superbasic_techno Not similar at all. You probably compare only personal tax income. Here example of Belgium. Employer pays 25% on your gross income to the state then you pay 13.07% for security on that gross income, then up to 55% personal taxes then around 7% city tax and we also have vat of 21%. Last year companies for example needed to change their status from BVBA to BV, (just a name) it cost 1500 euro for example, there are other small costs like this. (a lot).
Yes, "Europe" must establish a Eurozone committee to create supranational government oversight groups to foster increased paperwork and controls over private industry and ensure survival of French and German companies.
"Europe" must establish itself. Germany won't even allow an investigation into the attack of the North Stream 2 pipeline. They lost their number one source of very cheap and very reliable energy, they now have to import very expensive Liquified Natural Gas, they are de-industrialising themselves, and all because they are a US puppet.
Spot on. Just what the EU has been set up for. Everyone else can take a back seat. That's the Modus Operandi.
Much needed Internet sarcasm there, thank you.
Europe should disband the EU to incentivize competition
exactly...
Hurry and buy this bubble top before you have to pay half price in a few years. At this point, I'm still at a crossroad regarding whether or not to liquidate my $138k stock portfolio. What's the best way to take advantage of this current market?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Mind if I ask you to recommend this particular coach you using their service?
He appears to be well-educated and well-read. I ran a Google search on his name and came across his website;
thank you for sharing.
This isn't the first time I've seen his name on social platform. I think his good reputation speaks for him, thank you for the recommendation I just contacted him
Ples stop
Interesting that you show Ireland and the severe austerity that happened there as an example of why the European economy has slowed down. Austerity worked in Ireland and there has been huge growth here since 2013(measuring using modified GNI rather than GDP). There are signs of its results also starting to work in Spain and Greece. The countries slowing now are the ones that didn't have that massive clear out of inefficiency, bad capital, zombie businesses, etc.
Our economies are slowing down due to a significant number of reasons. One very important is the lack of energy independence. A nation like France has just slightly more expensive energy than the US but a nation like Germany has over double the cost per kwh.
Another reason is that we simply work less. The average Germany is only 67% as productive as the average American but when we count for the less hours worked the difference is narrowed significantly to a point where both countries are very comparable. The average American works for 1,791 hours a year while the average Germany onn 1,349. This obviously means that less products are being made which make the GDP statistics look worse than they actually are.
What's more the US simply has much larger digital economy than ours. A digital economy is the use of things like smart technologies, cloud computing, automation, E-commerce, Fintech and others. The US digital economy is by far the largest in the world with a size of 13.6 trillion USD. The biggest Digital economies in the EU is Germany with $2.54T, France with $1,19T and Italy with $377B. The difference is staggering! Keep in mind that the EU population is over 100 million people larger than that of the US. The Americans simply use advanced technologies more so than we do both overall and per capita.
And obviously we come to innovation. The US is the tech hub of the world with companies like Google, Amazon, Apple, Microsoft, Meta, IBM, Intel, Nvidia, Oracle and so many more that are the de facto leaders in the global ttechnology push. Not only the US implements smarter technologies more so than we do but also they are the one making them.
While I think it is important to have healthier and less stressful way of life it is also just as critical to move forward as a society. We push new industrial policies and yet we rely on other countries like the US to make all the things for us. This makes us dependent on other countries for exactly that way of life we strive for. This means with one snap of a finger and everything would be gone!
Trump is right America pays for Europe's easy lifestyle. He is right to get out NATO when countries like Germany do not do what they are suppose to.
@@steveharvey6421 The US should not get out of NATO. The alliance must stand as a beacon of hope for every society that wants to be free
Its mind bogling how Germany still use postal services for literally everything. Europe in general is far behind in digitalization and that factors a lot in my opinion.
@@guvenakyolekol That's not a big deal. What I meant was overall the digital revolution has not picked up the same way it did in the US. That's why their economy is bigger than ours despite the fact that ours should be way bigger given the vast population disparity.
Trump was right that Europe needs to pay it's fair share to NATO. The alliance is important but if Europe believes so, they need to contribute the amounts they promised.
Europe and EU are two different things.. There is constant mixing of these 2 concepts in the documentary.
It’s hilarious how people can tell lies using truths. The lower private spending is THE reason here. Austerity just means that these countries were not willing or able to substitute that lack of consumption with government spending. Which is actually a good thing, since that scenario would only increase inflation without doing anything to address Europe’s actual problems.
Economists usually disagree on supply and demand side economics. I think the problems run deeper
Let's talk about Europe's economy, shall we? Ah, Europe - land of delicious pastries, stunning architecture, and economic instability. It's like a soap opera that just can't decide on a plotline - one minute it's booming, the next it's busting.
I mean, have you ever tried to keep up with Europe's economy? It's like trying to follow a game of musical chairs where they keep adding more chairs and changing the music every five minutes. One minute it's Greece in the hot seat, then it's Italy, Spain, Portugal...it's like a never-ending game of economic Whac-A-Mole.
And let's not forget about the Eurozone - the club that everyone wants to join until they realize it's more like a dysfunctional family reunion. You've got Germany playing the role of the strict parent, France trying to keep the peace, and Greece in the corner sulking because they got stuck with the bill.
But hey, at least Europe has the Euro, right? It's like Monopoly money that's accepted in multiple countries - you can buy a croissant in Paris, a cappuccino in Rome, and maybe even a new BMW in Berlin. Who needs stability when you've got a currency that makes you feel like a jet-setting millionaire?
In the end, Europe's economy is like a rollercoaster ride - thrilling, terrifying, and always leaving you wondering if you're going to come out of it in one piece. So buckle up, folks, because the only thing certain about Europe's economy is that it's going to be one wild ride.
That was a delightful read. Thanks!
@@manelparedez3820 You're welcome! I'm glad you enjoyed it.
Yeah, and in the states the Rust belt, once formed, will stay till the Heat death of the universe. At least we switch it up a little. Your description of the Euro btw, doesn't fit the 2nd biggest reserve currency that isn't even backed by oil or the gold the states stole in the 70s. Pure cope.
Indeed love the stunning architecture of the balkan ghettos
Well done! Nice video, greetinga from Spain
08:09 misleading point, the reshoring of RnD departments to the native country or seat country. is what caused this, US companies did this in US, and the german companies in Germany. and reduced the amount of RnD labs. now you have a US company producing in EU but patent is US based. also investment in RnD is better in US than in EU because you can reduce your overal tax burden by investing in RnD which you can't do in EU.
good points
One of the main issues plaguing Europe's economy is the high levels of public debt. The global financial crisis of 2008 greatly affected the European economy, resulting in a sharp increase in public debt levels. Many countries in the region, such as Greece, Italy, and Spain, had high levels of public debt even before the crisis, and it only worsened after the recession. These high levels of debt have limited the capacity of governments to invest in infrastructure and other growth-enhancing projects, leading to slow economic growth. Moreover, it has also increased the cost of borrowing for these countries, making it difficult for them to repay their debts.
I think the point where rest of the world left EZ behind is when countries like Germany decided to put harder debt to GDP caps. Debt needs to fly around for our modern world to succeed. Unless Germany becomes more liberal with spending it will only drag growth in EZ down.
Fair point, but I wonder how much debt a nation can reasonably have before the bubble bursts. Ideally, when nations accrue debt they get a ROI from economic growth. But, countries like Japan are relying on debt to fuel their stagnate economy. It's interesting what Chancellor Scholz and his coalition will do to circumvent the debt-brake legislation in the coming year.
Nah Not really, debt is Just a Devils circle If you Go over a certain Point, wich can really backfire. If your over that Point and Something Like Corona or any other financial crisis happens your never getting Out of it again. Wich leeds to more debt to pay it ex.
@m3lvin449 idk why people think this. There is a reason debt exists and a reason governments have it, they aren't stupid. Debt is necessary to provide the capital necessary for economic growth. You just need yo manage it properly
Europe's economy is facing multiple challenges, both internal and external, that have hindered its growth potential. High levels of public debt, an aging population, structural issues, external factors, and income inequality are all major problems that need to be addressed. The region needs to focus on implementing policies that promote economic growth, increase competitiveness, and address income disparities. Moreover, there is a need for greater coordination and flexibility within the Eurozone to tackle the challenges facing the region's economy. Only through addressing these problems can Europe regain its position as a global economic powerhouse.
Thank you, for the High content...
Great documentary highlighting both weakness and strength of EU. Lot to learn from it.
The politicians. We have corrupt politicians that are out of touch and live in a bubble.
Rookie analysis taking into consideration that US household consumption is driven by credit while the EU is more prone to saving and not leveraging on credit.
so?
The EU is also approaching by communist wages while having capitalist real estate. Let’s not act like Europeans are saving loads of money when their monthly net income is 1800 yet rent is 1300.
This is exactly what I wads thinking about, if you look at US microeconomic environment , it is all driven by debt , most of it which is not sustainable, I am not even saying that average americans has load of debts into his personal and business account !
I dont know if this can be called sustained economic development !!??
Americans have large amount of equity in their homes. 30yr fixed rate loans are the norm.
@@lg206 Are we pretending rent isn't exorbitant in American cities either? What's your point?
23% of US citizens live in relative poverty.
15% in Poland
17% in France
18% in Germany
Wait did you remove the UK from the mix ? The graph will look weird if you do.
Very well done.
Very informative video. The core of the problem, IMHO, is Germany's preference for austerity, driven by their history such as the hyperinflation of 1923. This led to massive cuts in gov't spending throughout the EU after the 2008 Financial Crisis (as a precondition for getting bailout money). This in turn permanently reduced the incomes of millions throughout the EU (ex. Greece) leading to less spending and investment. The US took the opposite approach, recovered faster, and business investment recovered leading to further innovation in things like cloud computing and AI, which will widen the gap further going forward.
The only problem is that the US debt is skyrocketing: growing GDP by printing money is easy, but you only go faster into bancruptcy...
US debt is not real. They print the dollar. They can print away all the debt they want to@@janvanhaaster2093
European austerity was implemented by the Council of the EU and required a unanimous decision from the 27 Finance/Economic ministers of each national governments. It was led mostly by European Conservatives and Liberals. If we are to learn from the past, we must confront facts. Otherwise, we will walk into more mistakes.
Hello blogger, can you please add a simplified Chinese subtitle to the video? I am very interested in your video but I am troubled because I cannot read English.
As a Norwegian, I am happy we have our oil and gas, because other than that, we basically have nothing. Other than maybe sea food. Europe doesn't have the same incentives as the Americans to invest and build. There are so many taxes and regulations. Switzerland is the only exception. The UK, France and Germany, all have economies that will not be able to compete with China and the US, and Europe lacks energy such as oil and gas and other minerals. Renewables also means that China controls the rare earth metals that are needed to produce them. Nuclear power should be the future of European energy, and not renewables and hydrogen.
You spend almost nil on military costs compared to other countries....Norway averaged per year 2811.82 USD Million in defense from 1949 until 2022. It adds up. If the USA were not throwing billions of dollars into the defense industry per year EU or any other country in the world would never catch us in economic prowess, and we would be free of the National Debt.
Game over.
@@ericscottstevens Do your research. Norway's spending on the military is among the highest in the world per capita, by far highest in Europe. Military spending is not very important for the economy, it's the energy sector that truly matters.
@@AgentSmith911 So how is your Norwegian Pacific fleet coming along? Or the Norwegian Mediterranean fleet.....Well you may be spending per capita blah blah but it is miniscule in factor risk and actual deterrence to anything important. Your military spending is obviously skewed to a land strip 148,729 square miles
@@ericscottstevens We're a small nation of 5 million people, are you really that stupid that you think we'll bother spending half a trillion dollars a year to get aircraft carriers? No thanks, it's better to have free healthcare and education, something America could afford too if they weren't so hellbent on invading every third world country and then even fail at that.
@@AgentSmith911 The problem is that one of the only countries with nuclear power in the EU is France and to a lesser extent the UK... not easy either.
Also buying a virtual thing at 10 selling it back at 11 then 12, doesn’t create a value of 10+11+12= 33. This is how GDP calculations are false and GDP calculations are not the same in every countries.
It is funny to see Ireland being used has an example of the Financial Crisis, as Ireland Nationalised the Bank's and Ireland was the only country where austerity actually worked as intended with a load of mistakes made by the Government at the start. Ireland had had an economic slow/down or recession since the end of 2007 that got worse after Sept 2008 but the Nationalisation of the banks created a huge debt and Ireland enter the Troika in November 2010 and was out of the Troika by December 2013 ending austerity in Ireland in 2013 & Ireland had paid off the IMF, Sweden and Demark in 2017 and the UK in 2021. Ireland's example is ironic in light of the amount of actual private FDI Ireland has got since 2011
Ireland has, now, one of the highest growth rates in the EU on all three metrics used to measuse Irish Growth Rates.
Ireland's GDP, which is linked to the American Multinational Companies in Ireland (if you want to see the overall performance of The USA Multinationals look at Irish GDP movements), it is €475 billion. It is very misleading and makes Ireland, a US State in the EU. This was highlighted after Apple moved €55 billion of Intellectual property (IP) to Ireland in 2015 and caused a global shock as it jumped Irish GDP by 25% as ireland's GDP jumped from €223.1 billion to €278.3 million, that is not a large amount of assets to move on a global scale.
Ireland's GNI measures the general productivity in Ireland but this includes the Irish Aircraft Leasing Industry, which massive as the idea of airplane leasing was set up by GE Capital in Shannon back in the 60's & repatriated profits of American Companies in Ireland to the USA, Irish GNI is €336,521 million. Apple's IP asset movement also caused problems for the GNI of Ireland at the time was €192,381 million to €217,166 million, so Ireland stopped using this metric to understand the Irish economy.
The Irish Government uses Modified GNI to record Irish Economic performance and forecast Irish economic growth. It is GNI, Minus the depreciation on Intellectual Property, Minus the depreciation on leased aircraft, Minus the net factor income of redomiciled PLCs & it was created to deal with Ireland's Multinationals Sector and Aircraft leasing at the end of 2022 was €248,880 million.
Why not include Cyprus who is an EU member in any of the EU maps? Instead included Turkey on 3:20 who is not an EU member, and illegally occupies 37% of Cyprus territory....
Honestly a great video! The EU, and the world at-large, is going to be challenged in the next decade with drastic population decline and resource scarcity. These coming years will be the make or beak of most countries, however, given the strong historical stability of many EU countries, I don't think there is much to worry about as we are seeing a growth of investment in the defense spending of countries like Germany. Defense spending usually correlates to advancements in domestic technology, due to the high-tech nature of modern weapons. It'll be very interesting to see how these countries will react to the future global debt crises that will surely be worse than the GFC of 2008. Meanwhile, I believe that the EU is doing great at trying to boost their population through immigration, but those immigrants really need to assimilate to those new countries.
They also need to be educated. What will Europe do with illiterate or purely educated immigrants
I am not agree with your opinion because the history of Europe is full of war and instability. After ‘45 is like the most prosperous and stable for Europe but we don’t know how long it’s gonna last.
“Stop the prejudice”
“Those immigrants really need to assimilate”
You’re the reason we’re so miserable on this planet!
First u should look the crime these illegal immigrants are committing... They are gonna make Europe a third world country in noo time
Im extremely bearish on western Europe for the next couple decades. The bulk of their economies are built on the assumption of access to cheap labor, cheap resources and cheap energy. All of those assumptions are no longer valid with the crumbling of the rules based international order.
If only economy and gdp described how good a persons life is.
Are the authors of the video suggesting that the EU should run crazy, unsustainable deficits like the US and China are doing ? If so, why not say it outright ?
No it’s said that you need to grow your economy
Debt is fine as long as GDP growth is strong, debt becomes a problem when there's a lot of it and weak GDP growth which is what is happening in Europe's biggest economies save Germany
I mean, we have already crazy deficits without the growth part. All that deficit to cover social security
@@00doblecero I'm French so in my case yes but most European countries have let's say almost sustainable deficits.
It could be interesting to correlate the development in increased bureaucracy with the change in productivity in the EU. It is a good logical explanation that bureaucracy contributes to empty work that reduces productivity and reduces entrepreneurship.
Rather the contrary has happened. The EU has been decreasing Bureaucracy since the 90s by establishing standard regulations across EU member states and by decreasing paperwork due to free trade agreements and a standard regulation across all members.
Entrepreneurship has been increased and fomented by the EU with the EU Funding Budget for Development.
The reason you see a lack of productivity is because companies refuse to invest. As due to austerity investment has been lacking and consumers are spending less, so less profits and high competition makes businesses operate at budget cuts which feeds a loop of companies refusing to invest
@@liviuadrian1101 I do not agree with your view in any way. Just within the last few months, the EU has ordered companies to keep accounts of how many hours their employees work. Mandated companies a responsibility for the behavior of others in their supply chain. Bureaucracy is not being reduced in the EU, but new layers are being added all the time. Perhaps the difference between your view and mine is that I am a libertarian and you are on the left. As a function of this, one's opinion may vary and that is perfectly fine. The fact is that the EU is failing compared to the US, China and Switzerland.
@@glennnielsen8054 But they can use that data to optimize productivity?
@@thepedrothethethe6151 That's not my point. My point is that it will make visible the logic that the layers upon layers of bureaucracy that pour out of the EU year after year slowly settle like a heavy burden on those who lift the heavy load.
So basically, eu productivity declined with the introduction of the euro. Great.
It's all down to the 2009-2011 years and how the two Continents tackled the global financial crisis.
Moldova is not a member of the EU as far as i know. eg. shown at 3:37
The problem with Europe to much Medeling in domestic issues sticking there nose where its not wanted!
European countries have borrowed more than most this century. Energy prices going up has been a disaster.
This video, as do many others like it, neglects to mention some of the key underlying reasons why the US has been able to achieve this growth. Key among them is the embrace of shareholder capitalism. I live in Utah and California which offer workers an array of futuristic industries in which to build a career. The only reason why these options even exist is because of the laws, governance, culture, and know-how associated with building new companies and shutting down old companies in response to forward-looking opportunity. Shareholders have driven this action. They have been allowed to seek out profit and have mostly not been maligned or punished for it. The workers are the beneficiary. Having lived in Europe, I believe the vilification of “profit” is a problem and is now playing out predictably over the long term.
Actually higher life expectancy these days, has become a challenging problem for any country. So may not be a plus pt in economy n development unless significant changes are made.
Yeas, it's very challenging. Better to make more money and die young? The final goal of econonic growth is to be happy and live longer, isn't it?
@@960johnhe isn’t saying dying early. He is saying to changes in economy, we can use elderly population to work and add in economy. They could use their experience and knowledge of their kind of jobs created just for retired people who adds in economy and not being burden to the society.
I think the problem is how people still view Economic Growth as the main factor of prosperity. I see EU made a choice to make living more comfortable in exchange for slower economy, where US still keeping up the "biggest economy" policy even though almost half of it's citizen barely have any leftover for saving after paying taxes and bills.
I'm from Indonesia, and I can say our economy is behind both EU and US, but people here able to live (single, and include rent, consumables, tax, self care) with minimum wage, often still have ~10% remaining for saving. In my view that's what a good balance of "good enough" economy and comfort.
No, Americans barely have anything left over after spending on luxuries. Americans have most most after tax disposable income (cost-of-living adjusted) of all OECD countries.
Spending disposable income is an individual choice, you can save or invest it, or spend it. In any case it's a good thing.
Imagin what sunak would give for us numbers
Good work, useful, thank you
1:50 And that is what GDP PPP is for. It corrects the bizarre distortion of Nominal GDP 🤷♂
PPP is great if you want to buy a locally produced cucumber to put in your arse. But if you want to buy a computer or to buy equipment for your business, all that technology is priced globally.
So Ireland, Portugal, Greece, Belgium and Scandinavia are not advanced economies? 😂
Well Portugal and Greece probably aren’t.
Well Portugal and Greece both heavily dependent on debts from Germany
@@ws1814 And Ireland is only a paper economy. The gap between GDP and actual wealth is startling
Greece and Portugal are surely not.
@@HexaSquirrel ireland has amongst the highest average salaries in western europe, even higher then norways if i recall correctly. Ye theres alot of issues in the irish economy but its not all on paper
Ireland, Luxemburg and Belgium aren't advanced economies? Bro are you okay?
(I am writing this before watching video)
3 Reasons why EU gdp is smaller than US.
First, the exchange rate. It is not that the EU would produce that much less, it is the conversion at which are euros exchanged to dollars, so even though EU gdp in euros is growing, in dollars it's shrinking because the value of euro is depreciating to dollar.
Second, working population. Europe has more % of eldery, maternity paid leave, sick leave
Third, working time. Europe has on average 5 weeks of paid leave, where as in the US it is average of 2 weeks (sometimes not even that). In the US the average annual labor hours is 1,765, in germany it is 1,353 hours. So productivity per hour is actually higher in Germany than in the US.
This breaks my heart. Its just the feeling i have, because i think Europe has some juice to go and i want to invest on it, but at the same time feeling that maybe I'm missing out on wealth someplace else
I dont know whether the significant GDP Per Capita gap is permanent or not. But if we look at historical data, every few decades the US will have a huge increase in GDP per capita, much higher than the European average but after a decade or so the US will eventually slow down and Europe will catch up again. It happens during the 70s, US GDP Per Capita increased significantly before slowing down in the 80s, while Europe slowed down in the 70s and catch up in the 80s. The US has huge oil reserves and they also have many other natural resources. The 2020s is a period of hyper inflation fueled by very high commodity prices similar to those in the 70s. And the US being a major exporter of oil and other commodities definitely benefit from this. The oil & commodity price rally is not gonna last forever. My guess is by the end of this decade prices will start going down significantly. There will be a major recession and the US GDP growth will slow down for a couple of years, giving Europe time to catch up.
I think if you are a skilled worker, like an engineer in R&D, then perhaps the US may make you more money short-term. However, the cost of living in much of the populated areas in the US is rather high, which kinda negates the earning potential. I'm not too sure where in the EU you work, but in Germany, I find that my potential with a PhD in Materials Engineering will still lead to a very comfortable life. In the US, I can make more money in 5-10 years, but if I get sick or can't work I'm fucked.
@@secrets.295 how much you want to bet Europe ain’t catching up ??
@@StopThePrejudicenonsense. Major cities in the US like NYC, LA have a cost of living similar to places like London or Paris. But salaries are 2-3x more. Also, most jobs in the US come with health insurance. Over 90% of Americans have health coverage.
@@daxtynminn3415 Where do you find a flat for 3000 USD in LA ? In Paris, it is a luxury.
US is on next level
Don't forget American gdp mostly goes to top 1% and not to the whole population
I am struck by the turnaround of problems facing America as a young man Saudi Arabia cut off all the oil the prices went up dramatically like three times you have no idea and you couldn't find it because stations have allocations back then. Talking about gasoline. We were facing a new ice age how different the world is now.
Duh, it is the debt. And the extreme deficit spending makes the debt even worse. Somebody has to pay the interest; the economy effectively pays the interest, thereby dragging down net economic growth.
its 1 word and better explanation then this whole video
technofuedalism
Exactly this fake gdp numbers are useless, a small country can take 100 billion debt and be the richest in the world by gdp but wealth is not real
What debt? The EU has a debt to gdp of 83% which is modest
@metamind411 He means US EU is not 1 country France/Italy/Spain/Greece have record high debt 130% to gdp
Writing from France where I have lived for the last 5 years after 60 years in the USA. My impression of both France and the EU is very much of a region in slow economic decline, stagnation and even decay. Of the the 10 richest persons in the world, 9 are Americans and 1 is French. The 9 are from various high tech and finance industries, while the lone Frenchman made his fortune on (mostly useless) luxury goods. Its a perfect metaphor for what France has become, selling nothing but baubles to the world.
You can’t compare a large nation like the US with a strong multicultural heritage and idea , with a small country like France and far less diverse than the US in every aspect .
@@FS-eh4djwell yes but this video was comparing the entire EU to the US, & the US is still doing better compared to the entire union
Using the number of billonaires to value a country's health is such an american thing to do. Well being?. State of public infrastructure? Nah.
@@shiny_teddiursa because the US is one nation the EU are not one nation ,,, the US has lots of internal migration where skills can Easley find better opportunity in the EU there is a language obstacle yes some companies are flexible but most aren’t .
Furthermore the US can print the dollar the EU can’t ,,, the US has more natural resources including in agriculture .
What would the US GDP if you stripped out government spending?
Measuring economic growth by comparing GDP per capita doesn´t make lots of sense considering huge multinational tech companies that are based in the US. The average US-citizen doesn´t profit much from growing GDP, so comparing standards of living of the middle classes would tell more about how different countries perform.
Median household income is significantly higher in USA compared to EU and 70% of USA GDP comes from domestic consumption
That’s what happens during socialism
“Lower levels of prosperity in Europe because a better work-life balance and social security systems”? I don’t want your prosperity then, thank you so much
Is it really better though? I'd rather work 50 hours per week for $5,000/month than 40 hours per week for €2,500/month.
Europe has long been considered a leader in global economics, with countries such as Germany, France, and the United Kingdom driving growth and innovation. However, in recent years, Europe's economy has been facing numerous challenges that threaten its stability and growth. From high unemployment rates to increasing debt levels, Europe's economy is facing a multitude of problems that require urgent attention. In this paper, we will examine the main issues affecting Europe's economy and the potential solutions that can help address them.
One of the primary problems facing Europe's economy is its high unemployment rates. According to Eurostat, the statistical office of the European Union, the unemployment rate in the EU-27 stood at 7.3% in February 2021, with some countries such as Greece, Spain, and Italy reporting rates above 10%. This has been a persistent issue for many years, with the global financial crisis of 2008 exacerbating the problem. The high unemployment rates not only affect individuals and their families but also have a significant impact on the overall economy. Unemployed individuals have lower purchasing power, resulting in reduced consumer spending, which can lead to a slowdown in economic growth.
Another major issue facing Europe's economy is the increasing debt levels of many European countries. According to the European Commission, the average government debt in the EU was 79.4% of GDP in 2020, with some countries such as Greece, Italy, and Portugal having debt levels above 100% of their GDP. High levels of debt can limit a government's ability to invest in the economy, leading to lower productivity and growth. It can also make it difficult for countries to borrow money in the future, as lenders become wary of the country's ability to repay its debt.
One of the contributing factors to Europe's economic problems is the slow pace of economic reforms in many European countries. Some countries have been slow to adopt necessary reforms, such as liberalizing labor markets, increasing labor mobility, and reducing bureaucracy. These reforms are essential for boosting productivity and promoting economic growth. However, political and social barriers have hindered their implementation, resulting in a slow and fragmented approach to reform. This has made it challenging for Europe to compete with other global economic powers, such as the United States and China.
Another significant challenge facing Europe's economy is the aging population. The European Commission predicts that by 2070, the number of people over 65 in the EU will almost double, while the working-age population will decrease. This demographic shift will have a significant impact on the economy as it leads to a decrease in the labor force and an increase in the number of retirees. This will result in a strain on the social security system and a decrease in consumer spending, which can negatively affect economic growth.
To address these issues, European countries need to come together and implement coordinated policies that promote economic growth and stability. One potential solution is for countries to increase investment in education and training to improve the skills of their workforce. This would help reduce unemployment and increase productivity, leading to economic growth. Additionally, countries could also focus on implementing structural reforms that promote labor market flexibility and reduce bureaucracy, making it easier for businesses to operate and create jobs.
Another solution is to increase public and private investment in research and development (R&D). Europe has been lagging behind other global economic powers in R&D spending, which limits its ability to innovate and compete in the global market. By increasing R&D investment, Europe can foster innovation, create new industries and jobs, and drive economic growth.
Furthermore, Europe needs to address its aging population by implementing policies that promote a healthy work-life balance and encourage immigration. By promoting flexible work arrangements and offering incentives for working parents, Europe can retain and attract talent, ensuring a steady supply of workers. Immigration, especially of skilled workers, can also help offset the decline in the working-age population and boost economic growth.
In conclusion, Europe's economy is facing numerous challenges, including high unemployment rates, increasing debt, slow pace of reforms, and an aging population. These issues require urgent attention, and a coordinated effort is needed to address them effectively. By implementing policies that promote education and training, increase R&D investment, and address the aging population, Europe can boost its economic growth, remain competitive in the global market, and ensure a prosperous future for its citizens.
The problem with that line of thinking is.. eventually your children wont be able to have either.
That only lasts so long...As you get poorer and poorer that quality of life gets lower and lower. You would have been better off being a farmer in 1920s Mexico over 1920s America as mechanization caused serious disruptions. By 1940 that Mexican farmer was dirt poor compared to his American counterpart. So too has this happened with technology and Europe.
I would rather have been factory worker in Europe in 2018 vs an American one in 2018...By 2028 or 2038 that European factory worker wont even be on the same economic scale as his American counterpart.
@@VikramMedhekarno one is getting poorer and quality of life is only ever improving, in Europe and everywhere else in the world. It is just that the growth rate of Europe's economy is lower
With nice high interest rates, investors will reset their allocation to more bonds and even Bank C.D.'s that will finally pay a higher yield. That will push savings into interest paying instruments, lower the bubble prices of housing, and Banks with all that cash will need to loan to buyers for houses. It will take time.
But saving actually is the basis for proper economic investment, not speculative Equities or Housing Flipping sales that just drive up the prices of homes. You want to speculate, buy currency or commodity options.
the point about exchange rates is moot. you stated the eu had a larger economy by 1.5 trillion USD in 2008. iirc that winter the dollar was the strongest it was in an EXtremely long time. I remember gas in my area going from $4.50 to $1.29 a gallon. So if you DO take exchange rates into account, the economic gap today will probably be even larger.
Eu biggest issue is wasting money on illegal immigrants, places like Gaza and other shit. Eu doesn't need to help everyone, but it does. While it could better invest in itself..
That's not true how much money is gone to Gaza probably just food items and that's not worth more. Israel recieved more charity than that. EU biggest issue is lazy European who don't want to work, want 9 week vacations, want to smoke weed and go to pub and have sex, and are on social media all the time. The Chinese Japanese probably in factories. The rise of china is reason for the fall of Europa why would anybody want to buy from Europe when china can give at lower price shein destroyed HM why?? Because of easy peasy cheap good.
Maybe you should've explored how Europe policy is driven by USA interest, and led the EU to conflict with Russia, instead of cooperation with Russia, China and India?
USA is The biggest consumer market for european exports.USA spends big on military so other nato countries can Spend big in social services
Can u make a video on economy of Bangladesh please?
Private consumption should decrease though. We can't keep growing forever.
11:29 With this level of export dependence one would expect the EU to have a strong presence abroad, whether through diplomacy or a strong hand.
Nah, why would the EU make their own trade agreements and investments abroad.
When you could just use the US trade agreements and pay their middleman in New York.
Why would the EU invest abroad when you could just pay Wall Street to do it for you
You should have at least mentioned the tradeoffs of having a common currency across a very diverse set of countries. The USD is an advantage for the US (as it’s the global reserve currency), while the Euro poses many problems for the countries in the Eurozone, specially Southern countries which cannot be competitive internationally at such an appreciated exchange rate
Yeah, they cant devalue their currency to boost their exports True.
But they have acces to a higher value currency which allows them to import cheaper.
You thought about that?
@@liviuadrian1101 less work and less investment. There is a reason why Japan was more than happy to devalue it's currency to boost it's economy.
Southern Europe has political problems. They can't compete because their generous social policies don't match up with northern Europe.
Excellent analysis
US productivity is slowing too. Productivity is only up in the US because everyone does 2-3 jobs worth of work. But salaries are 2/3s of a single job. So people are fed up and not doing it anymore
Your source = "Trust me bro"
You are talking bullshit. I can tell you have never been here
AI is already having a productivity boom in the US.
Don't talk about your personal problems as if it's a national one. 😂🤣😂
I also think it has something to do with the fact that the USA literally just prints money to drive its growth. At some point that’ll have to come to a hard stop and spending will have to be cut and a slowdown of the economy surely will ensue because of it.
Has to do with geography, demographic & drive.
We're also 123.8 trillion in the black. Look at the sheet.
The USA isn’t printing money to drive growth.
Inflation in America is less then Europe dumb dumb
Right, because austerity has obviously worked so well for Europe and the UK.
@@guydreamr the US is over 30 trillion in debt. That debt will have to be paid back at some point - so at some point, there will be austerity to the US as well.
@@pollutingpenguin2146 Not as long as the economy grows as fast as the debt, then it is money well spent.
Renewables, hydrogen, nukes, quantum computing, biotech, longevity, fertility.
The uk stepped out of the EU... comparing total gdp is dumb
Us economy is very concentrated and its way to dependent on debt, this doesnt mean youre points arent true europe is too bureaucratic it needs to make it simpler for companies to exist
do you draw Russia in the same map as Europe?
And what continent is Russia, stupid?
Russia was, is and it will be always part of europe,wether you nazzis like that or not
@@siononcoolEurope is not a continent.
@@ashokathegreat4534 it is . Continents are not geographical. They are political
10:25 "people prioritize free time and job security more than higher earnings"
That's so false. Job insecurity has been on the rise, workers are experiencing more and more part-time job conditions (less job security). While at the same time overtime (extra hours) has become a norm.
Implying that workers are the ones refusing to have higher earnings is such a joke.
It's so funny to hear that europeans prefer to earn less 🤣 when in reality they are facing worse work conditions in order to keep their shrinking wage due to inflation and their social security.
Oh God, thanks for sparing me the american education.
Does the four-day work week have something to do with this? I'm from the US, and the work culture is more intense than I've seen in Europe. Europeans value a relaxed life more, so maybe don't worry about being number 3.
3:14 why is Belgium not an advanced economy?
Or Denmark, Ireland, Portugal, Sweden... lol
All the coloured countries are trillion dollars I guess
and since when is moldavia in the eu wtf
Portugal? lol :))))@@joaomramalho1
@@joaomramalho1Portugal💀
USA is blessed
We’re soo blessed but we’re our own worst enemy. The USA makes its own problems.
Europe needs federalization.
The problem with the European economy is the EU burocratic regime in brussels. Europe is closed for business.
EU's prioritization of free time and job security over higher earnings is not a "challenge" but a worthwhile goal.
Exactly, overworked employees are much less productive than well-rested employees. Plus, I feel like it's a cultural thing too.
Really? Why is the US more productive then ? And the gap increases.
@wouldnt_you_like_to_know EU is more quality over quantity than their counter pairs from thr US.
@@olairmao what quality man ? In car manufacturing it is already falling behind. It has lost the train for electric vehicles. No tech giants, clumsy financial sector. Stupid environmental goals that hinder development, crazy complicated regulations that make emerging company to fail and existing ones to lag behind.
What quality are you talking about?
Wake up!
That maybe so but as long as Europeans are aware of the tradeoffs to this then by all means pursue it.
I actually think there are two major reasons for European growth being lacklustre relative to the US. The first has to do with debt. The US has borrowed trillions to keep growing. In the last quarter alone it borrowed 1.5 trillion USD. Without this stimulus there is zero growth and at any rate this would bankrupt the country long-term in as little as two years. Secondly Europe is reliant on manufacturing and less on high technology. Europe needs an Apple, Alphabet, Microsoft, Amazon to fuel growth. Finally the biggest challenge is resources. Europe has a limited availability of resources...on the other hand if it were ever able to persuade Russia to join the EU it could have a near infinite resource. Europe is not dead just lacking direction is my conclusion.
Europe has always had a nack for stability. But stability in terms of economics may often lead to a status quo. It's also in the nature of the EU itself, it grew from a postwar union of industry, to a cultural union focusing on human values and sustainability.
More likely Russia will "persuade" the rest of Europe to join Russian federation😅
So it all boils down to individual talent and creativity - much of Europe is reliant on manufacturing based on chemistry and mechanical engineering - and both could be replicated by other emerging economies likes of China, India, Vietnam.
@verysimple9767 Perhaps they should shift their efforts into AI and online shopping etc. Like the Americans. Realistically these are companies that could be even more readily transferred.
europe need to be more competitive
The problem is the public spend, and you suggest increase that(?. Nice video but, UE is not a free market, what about the ilegal immigration?, taxes to production like CO2, and suicidal climate policies?
So slower economic growth but much better quality of life than the USA. Id choose better life any day
Um, you are deceiving yourself. You have no choice in the matter, so you are saying it is better.
Yes I’m sure all of the rich people in America envy your quality of life. 😂😂
The problem is that welfare needs a good economy to sustain otherwise you'll end up with a larger and large tax bill that cripples your economy.
The problem is that people come to rely on Someone Else to produce. Argentina is the queen of this attitude.@@deezeed2817
@@daxtynminn3415 Also the 40 percent that are crippled with credit card debt, the 60 percent that can't afford a medical emergency
To be fair, I'd rather have free education, healthcare, and strong unions that fight for my wages than having to fight tooth and nail for my wages to just combat inflation, get wrecked by student loans and medical bills, and literally not being able to get anywhere without a car while paying relatively similar taxes...
Eh the UK has higher student loan rates, most Americans don’t go to uni. As far as unions and healthcare and walkable cities, depends on the state. States like California and Massachusetts have social goods that rival any European country. Other states like Texas and Florida don’t have that but are cheaper.
problem is you are fucking up things for future europeans for your own comfort.
Old people stealing the young people's future
@@mharley3791Yeah Florida, the state of culture lol. Talk about bs laws, california is first
@@mharley3791 buddy, I've been to all the places you mentioned. Just because there are few historic sites that may resemble similars in Europe, doesn't make them European. It doesnt come anywhere close. Concerning unionism and healthcare, it might as well be another planet.
If the european way of life were that great, you wouldn’t need to throw passive aggressive jabs at America. You’re clearly trying to convince yourself
I wonder how much more the US can increase its public debt compared to Europe, since the US dollar is the worlds reserve and trade currency. The Us has a huge debt burden, but it hasn't affected the value of the dollar. One could argue that the US most important export is the US dollar.
12:44 it's all coming at a cost, too. (VAT)
00:16 Europe's economy has been stagnant and is being surpassed by the US
02:10 Europe's economy lags due to slow economic growth
04:19 Productivity growth in Europe has been driven by capital deepening but Total Factor Productivity (TFP) growth has declined.
05:55 Austerity in Europe has led to low investment and declining private consumption.
...gess what: can we talk about the huge DEBT of the USA ????
07:42 Europe's economy is lagging in manufacturing and digital technologies.
09:24 European economy struggles with global competition
11:01 Europe's heavy reliance on exports is becoming a weakness.
12:37 Europe leads in equality, social progress, and life satisfaction
In France with have the left calling for "décroissance" aka "ungrowth / decay" so ...yeah it makes sense that Europe chosed socialism and life balance rather than economic growth...
The left isn't calling for a "décroissance" but just some ecologists
And it has nothing to do with socialism to call of a "décroissance" (it is even kinda the contrary since socialist countries also try to grow their economy, especially since they have more expenses to pay for their people...)
But an environmentalist take as they think ungrowth is necessary (on a large scale, not just france, but the entire planet) in order not to reach a point where the world economy would collapse (collapsology theory, which is being supported by more and more scientists nowadays)
"Europe chose socialism" 😂😂😂 dude is stuck in the 1950s
The Neo-Liberals have been in power since the 90s dude, wtf are you talking about?
Was the 2008 crisis the fault of the left too? Austerity, which has decreased economic growth, has been the lefts doing too?
🤣 Wake up buddy
Danke Merkel!
Energy affects all aspects of an economy as an economy as an added cost. Americans do work more. That’s part of it, but they also have energy independence. With fracking they now have more oil than any other country and more natural gas than Saudi Arabia. With a mix of renewables and modern nuclear power plants, Europe could become energy independent. This would greatly drive economic growth for Europe. Europe needs to deregulate where manufacturing is concerned to promote it. Offer tax incentives for manufacturing. Tax companies that outsource manufacturing jobs. Put tariffs on China to protect your domestically produced products.
Way too much taxes that is killig a firm before it even started....
First impression is that this is a poorly researched and biased analysis. For one thing there is no mention of changes in E.U membership during this period. Since 2008, Croatia joined (2013) and the U.K. left (2020 officially). This would have naturally resulted in a large decline in total European GDP as the U.K was one of the largest European economies at the time and Croatia relatively impoverished when it joined.
In addition, there is no mention of of the euro’s steep decline during the period. In 2008, the euro was worth almost 1.5 times the U.S dollar. By 2022 it was almost at parity. This is significant because the gdp comparisons here are in U.S dollars. When you consider other factors such as gdp adjusted for purchasing power parity (PPP), per capital GDP or productivity per hour worked, the European economy looks much better.
Adjusted for PPP, the E.U output fell only 4% behind that of the U.S over the last 20 years. In terms of gdp per capita the E.U grew faster than the U.S thanks to Eastern Europe catching up while Western Europe held steady. Europe definitely has it problems - such as an aging demographic, a deterioration in the competitiveness of its technology sector and it’s lack of conventional energy resources, but the situation is nowhere as dire as this video makes out.