Posted on 06/20/2004 2:52:07 AM PDT by Kaslin
The growing split between the U.S. and Europe has been much in the news, mostly on foreign policy. But less well understood is the gap in economic growth and standards of living. Now comes a European report that puts the American advantage in surprisingly stark relief.
The study, "The EU vs. USA," was done by a pair of economists--Fredrik Bergstrom and Robert Gidehag--for the Swedish think tank Timbro. It found that if Europe were part of the U.S., only tiny Luxembourg could rival the richest of the 50 American states in gross domestic product per capita. Most European countries would rank below the U.S. average, as the chart below shows.
The authors admit that man doesn't live by GDP alone, and that this measure misses output in the "black" economy, which is significant in Europe's high-tax states. GDP also overlooks "the value of leisure or a good environment" or the way prosperity is spread across a society.
But a rising tide still lifts all boats, and U.S. GDP per capita was a whopping 32% higher than the EU average in 2000, and the gap hasn't closed since. It is so wide that if the U.S. economy had frozen in place at 2000 levels while Europe grew, the Continent would still require years to catch up. Ireland, which has lower tax burdens and fewer regulations than the rest of the EU, would be the first but only by 2005. Switzerland, not a member of the EU, and Britain would get there by 2010. But Germany and Spain would need until 2015, while Italy, Sweden and Portugal would have to wait until 2022.
Higher GDP per capita allows the average American to spend about $9,700 more on consumption every year than the average European. So Yanks have by far more cars, TVs, computers and other modern goods. "Most Americans have a standard of living which the majority of Europeans will never come anywhere near," the Swedish study says.
(Excerpt) Read more at opinionjournal.com ...
In other words poverty is relative, and in the U.S. a large 45.9% of the "poor" own their homes, 72.8% have a car and almost 77% have air conditioning, which remains a luxury in most of Western Europe. The average living space for poor American households is 1,200 square feet. In Europe, the average space for all households, not just the poor, is 1,000 square feet.
If you believe the democRats the poor here are living in squalor (sp)
I believe that hell freezes over before they get the message
So how much is average salary in USA?
Maybe you have lower prices?
Hard to beat the triple whammy of higher salary, lower taxes, and what's left over goes to spend on lower priced goods.
The not only don't get the message, but they finalized their "Union" with their insipid Constitution. The United Socialist States of Europe, or Soviet Union v2.0. Like all the rest, it will fail - and probably fail violently in the end.
(Take note, China.)
The Europeans gave their hearts to national socialism in the 1930s, and have never changed.
Two new developments are that they are trying to change the definition of "nation" to equal "Europe", and they are trying to subcontract the final solution of the Judefrage to the islamic Internationale.
Other than that, it's 1933 all over again.
The Euros will be at each other's throats again within 25 years - guaranteed. This "Union", Muslimification, and the misery of socialism will be the causes.
Sadly, the children of the US will be sent into the grinder to save Europe from itself once again.
Hey Europe. Real Capitalism works! Socialism doesn't. Get a clue!
Not until DanPeterTom say so.
Living here in Bavaria is puzzling.
The locals all seem to be doing fine.
They enjoy a 34 hour work week.
They enjoy extensive vacations, sick days and holidays.
But one telltale sign is shopping habits - they shop like hungry animals being herded - as if consumer goods of all sorts are in short supply.
I say this as one who lived here for 4 years in the early 90s and returned six months ago.
I am saving this article in case any Euroweenies pull the old shinola about poverty in the USA being so bad.
At some point the US will refuse to intervene in Europe's murderous squabbles. Or else we'll come to the point where we'll use some kind of gas that turns combatants into peaceloving nerds.
Average wages was $36,764 in 2002. For hourly employees it was $520.00 a week or $27,040 a year but that includes part time employees as well as full time.
Maybe you have lower prices?
I believe we do, along with lower taxes. Which does mean lower prices.
There are other differences as well. In the US we work an average of a 46-hour work week only the UK comes close to this figure with an average of a 45-hour work week.
There is also a big difference in spending habits. In the EU vacations mean going to the beach or doing something else that is not work. In the US you ask some one what they are going to do on their vacation and half the time they will tell you that they are planning to work around the house, painting, putting a new roof on, landscaping or adding a new room onto the house for example. The end result is in the US you are more likely to spend your time off continuing to build wealth even if you don't see it that way.
Belief in socialism--and other harebrained utopian schemes, including the worldwide Islamic theocracy, with the shariah as international law, which the critical mind recognizes as blueprints for disaster without having to try thm--are delusions. Like all delusions, the more they are threatened by truth, the more aggressively, even violently, they are defended.
Those who advocate socialism are blind to the realities.
History, the fall of the Soviet Union, the success of capitalism in America, the darkness of North Korea and the brightness of South Korea when photographed from space--the endless demonstration that capitalism brings prosperity and socialism causes disaster--only make the deluded more determined to make it work--or destroy the world trying.
This is no cause for complacency - we need to do more to lower our taxes and regulations, but it is promising.
Regards, Ivan
What is so terribly sad is how the Euros cling to the silly notiton that their relaxed lifestyle - paid for by taxes and high prices - can be perpetuated ad infinitum.
Its great to lolligag around on all the holidays and have such short work hours, but at some point the game will be over. Too, I think we all know what happens when a generation or two gets too much of this easy life - they end up being spoiled brats.
Add to this the low rate of childbirth and you have a serious crisis on our hands.
My wife and I wander around with our six children - well behaved and clean and neatly-dressed - and its as if we were a paid sideshow.
bookmark bump
"The not only don't get the message, but they finalized their "Union" with their insipid Constitution."
Now they can tax themselves to prosperity!
Bonus: With tax harmonization, they will all be makings circles around the bowl.
IMO when the EU goes down it will damage our economy.
Let' see how well this has worked for them in 20 years...
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