It always amazes me that some Europeans look to the USA as some goal to aspire to. As an American, all I’m trying to do is get rich enough to move to Europe someday. There are greater goals than growth at all costs. Things like respecting the humans that live there and putting their well-being above corporations. If that thwarts “growth”, so be it.
I think the lack of social safety net in the US is a gun to the head of American workers that gets more productivity out of them (at the cost of well-being which isn't accounted for). The billionaires are necessary as aspirational opiate that allows those same people to work themselves to death with the balm that they too will soon join the ranks of the billionaires. Let's not even start on how the American economy depends on undocumented immigrants which function as disposable citizens. They function economically as citizens but don't consume resources and can be sent away as needed if they happen to be inconvenient.
I do not think there is an ethical way to challenge the American economy. It'd be like trying to beat the costs of Dubai's construction industry without enslaving Asians.
Japan had a similar turn in the 80s, but unlike Europe they seem to have more of an alternative view of society and future.
Europe seems to effectively follow American culture and practices with a dampener. Being America with healthcare and college funds has not been much of a vision for the future.
I hate these hit pieces against the EU, but I’ll give OP credit that theirs actually has a mixture of credulous proposals (Federal preemption, ending directives, commercial court) alongside the usual pro-billionaire insanity (a 28th regime just for business? Removing regulations on product standards? Are you fucking kidding me here?).
Europe has its fair share of issues, but a lot of them can still be traced back to unresolved wealth pumps and neoliberal policies weakening the state and labor force in favor of business and billionaire interests. There’s also unresolved questions about how much of America’s economic growth is tangible versus theoretical, given the dilapidated state of America’s infrastructure and ballooning national debt problem. Neutering what makes Europeans so much happier than their American peers just for the sake of “productivity” comes off as gallingly tone deaf to the practical realities on the ground.
I'm Dutch, the media narrative is a major problem. It's not being honest about the level of relative decline between USA & NL. 20 years of diverging growth rates has had a massive impact. This trend will continue, since NL missed most of the internet, mobile, social and AI startups.
Here in Colorado even people at entry level jobs can afford a nice home. Salaries are way lower in NL, and housing is incredibly expensive.
But the media just doesn't report on it. You don't notice it unless you live in both places. Still a beautiful country though and USA has it's own problems as well.
The measure of "output" is the problem. Output can be increased by more expenditures, not a real tangible benefit for the society.
The US had 6.3% GDP deficit in 2024, meanwhile it's 3% in the EU. The US is growing on debt, and on its way to become Japan.
Even on EU's worst debt crisis times, it didn't run such a big deficit as the US.
Add in the fact that the EU has accepted the Meta/Google tax in advertising, among other US' interests businesses. Which it can change its mind and get such businesses in trouble.
Not to forget about shale oil. The US became the biggest oil producer BY A WIDE MARGIN.
But it's all based on a $60 barrel, if the oil barrel goes back to $40, you'd see most of those companies filing bankrupcy and trillions disappearing. Here's another industry that the US government will need subsidize further with more US debt and taxpayers money.
There's a lot of risk attached to the US' recent growth, people would be naive to not consider them. We'd have to see if that trend lives for longer, and what are the tradeoffs.
The EU could decide to also destroy its country, feed people a lot of corn syrup and diabetes, and provide them GLP-1 drugs to increase its GDP.
Or just make the european believe that big cars are great, and they need a 5 bedroom house for 3 people.
All this would push that holy productivity number UP, but does it make rational sense to do that? Nope.
What is never mentioned in articles like this is that the post-war period was a truly exceptional period in one respect: literally almost everything was supply-limited. A bit less so in the US than in Europe.
Now it's the opposite: almost everything is demand-limited. If you asked a good economist "what factory needs building?", the answer would be none. Or the answer would be something like "the EU is about to outlaw calculator imports from China, build that factory".
One of these environments makes it much, much harder to grow.
> almost everything is demand-limited. If you asked a good economist "what factory needs building?", the answer would be none.
Could you give examples of economists saying that? There are current economic problems but those are self-inflicted. Before that, labor was in high demand in the US, in order to build and operate factories, etc.
A lot of (not all) European regulation is at it's core about trade.
Things this author feels are "obstructions to trade" are to enable trade of the things we value. For example Europe might regulate what fish species you can sell if you call a fish "Anchovy". Additionally some regulation applies minimal standards, for example regulation of the angle of what's visible in the rear view mirror of a car. On top of that some regulation is to guarantee certain standard of living between member countries. The countries themselves are separate governing states therefore they still have some agency on the standards they set on top of the European regulation. This all is required for equal trade between countries while not merging altogether.
On top of that not all regulation is about economics, sometimes we favor safety, standard of living or social safety nets above short term profit. Those factors will in the long run lead to more prosperity for the citizens.
No system is ideal and there are definitely problems within Europe however I feel like this article is written from a very pro USA perspective. At points it almost reads like a thread to the European government or pro-USA propaganda. I think the authors proposes a solution that will lead to a "race to the bottom" within European trade similar to how the current economic system is dysfunctional in the USA.
>sometimes we favor safety, standard of living or social safety nets above short term profit.
Did you read the whole article? The current European standard of living is built on debt and unsustainable without an increased rate of growth (to outgrow the debt). And it potentially poses an existential threat, because if Europe's GDP and industrial capacity relative to its neighbours continues to fall, it faces the risk of invasion by e.g. Russia.
I live in Europe and I am not sure what’s so terrible about us falling behind the US. Are people going hungry? Having a hard time finding a place to live? Traveling to nice places?? Not even that in my view. We live a happy fulfilling life. We are healthy . I would say even that most people are better off than most Americans. The US is ahead mostly because of a few giant corporations and billionaires. The average American is just not benefiting so much from all that wealth.
Also, please stop this colonialist nonsense about spreading our way of live elsewhere. If the world wants to use our model of life as an example, great otherwise leave them the hell alone! Want to help them out of poverty? Trade with them on fair conditions. Don’t give them scraps in exchange for doing as they’re told! China seems to be doing that much better than Europe ever did.
Eh idk if I should take the word of people who praise governement bailouts and try to protect big tech companies by saying they aren't really monopolies since they have some competiting elements
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[ 2.4 ms ] story [ 42.1 ms ] threadI do not think there is an ethical way to challenge the American economy. It'd be like trying to beat the costs of Dubai's construction industry without enslaving Asians.
Europe seems to effectively follow American culture and practices with a dampener. Being America with healthcare and college funds has not been much of a vision for the future.
That's a complete misunderstanding of Europe.
> Being America with healthcare and college funds has not been much of a vision for the future.
It provides much lower costs (healthcare) and a healthier and better educated citizenry and workforce.
Europe has its fair share of issues, but a lot of them can still be traced back to unresolved wealth pumps and neoliberal policies weakening the state and labor force in favor of business and billionaire interests. There’s also unresolved questions about how much of America’s economic growth is tangible versus theoretical, given the dilapidated state of America’s infrastructure and ballooning national debt problem. Neutering what makes Europeans so much happier than their American peers just for the sake of “productivity” comes off as gallingly tone deaf to the practical realities on the ground.
Here in Colorado even people at entry level jobs can afford a nice home. Salaries are way lower in NL, and housing is incredibly expensive.
But the media just doesn't report on it. You don't notice it unless you live in both places. Still a beautiful country though and USA has it's own problems as well.
The US had 6.3% GDP deficit in 2024, meanwhile it's 3% in the EU. The US is growing on debt, and on its way to become Japan.
Even on EU's worst debt crisis times, it didn't run such a big deficit as the US.
Add in the fact that the EU has accepted the Meta/Google tax in advertising, among other US' interests businesses. Which it can change its mind and get such businesses in trouble.
Not to forget about shale oil. The US became the biggest oil producer BY A WIDE MARGIN.
But it's all based on a $60 barrel, if the oil barrel goes back to $40, you'd see most of those companies filing bankrupcy and trillions disappearing. Here's another industry that the US government will need subsidize further with more US debt and taxpayers money.
There's a lot of risk attached to the US' recent growth, people would be naive to not consider them. We'd have to see if that trend lives for longer, and what are the tradeoffs.
The EU could decide to also destroy its country, feed people a lot of corn syrup and diabetes, and provide them GLP-1 drugs to increase its GDP.
Or just make the european believe that big cars are great, and they need a 5 bedroom house for 3 people.
All this would push that holy productivity number UP, but does it make rational sense to do that? Nope.
Now it's the opposite: almost everything is demand-limited. If you asked a good economist "what factory needs building?", the answer would be none. Or the answer would be something like "the EU is about to outlaw calculator imports from China, build that factory".
One of these environments makes it much, much harder to grow.
Obviously this is a general trend, not a rule.
Could you give examples of economists saying that? There are current economic problems but those are self-inflicted. Before that, labor was in high demand in the US, in order to build and operate factories, etc.
On top of that not all regulation is about economics, sometimes we favor safety, standard of living or social safety nets above short term profit. Those factors will in the long run lead to more prosperity for the citizens.
No system is ideal and there are definitely problems within Europe however I feel like this article is written from a very pro USA perspective. At points it almost reads like a thread to the European government or pro-USA propaganda. I think the authors proposes a solution that will lead to a "race to the bottom" within European trade similar to how the current economic system is dysfunctional in the USA.
Did you read the whole article? The current European standard of living is built on debt and unsustainable without an increased rate of growth (to outgrow the debt). And it potentially poses an existential threat, because if Europe's GDP and industrial capacity relative to its neighbours continues to fall, it faces the risk of invasion by e.g. Russia.
Also, please stop this colonialist nonsense about spreading our way of live elsewhere. If the world wants to use our model of life as an example, great otherwise leave them the hell alone! Want to help them out of poverty? Trade with them on fair conditions. Don’t give them scraps in exchange for doing as they’re told! China seems to be doing that much better than Europe ever did.