EU vs. USA - A New Swedish study compares GDP and Growth
A new Swedish study by Dr Fredrik Bergström, President of the Swedish Research Institute of Trade, and Mr Robert Gidehag, until recently Chief Economist of the same institute and now President of the Swedish Taxpayer's Association shows that if the European Union were a state in the USA it would belong to the poorest group of states. France, Italy, Great Britain and Germany have lower GDP per capita than all but four of the states in the United States. In fact, GDP per capita is lower in the vast majority of the EU-countries (EU 15) than in most of the individual American states. This puts Europeans at a level of prosperity on par with states such as Arkansas, Mississippi and West Virginia. Only the miniscule country of Luxembourg has higher per capita GDP than the average state in the USA. The results of the new study represent a grave critique of European economic policy. Stark differences become apparent when comparing official economic statistics. Europe lags behind the USA when comparing GDP per capita and GDP growth rates. The current economic debate among EU leaders lacks an understanding of the gravity of the situation in many European countries. Structural reforms of the European economy as well as far reaching welfare reforms are well overdue. The writers of the report say the Lisbon process lacks true impetus, nor is it sufficient to improve the economic prospects of the EU. EU-Digest: GDP is an economic formula: In the study the writers do not show how a better GDP compares to the overall quality of life. It seems questionable when 3 people in a family have to work 10 hrs a day at several jobs to increase their spending power and consequently improve the overall GDP, if this benefits the quality of life. It seems more democratic when people are given choices as to how they want to work and live, and not be forced into what captains of industry consider quality of life to be. The study can be downloaded at http://www.timbro.com/euvsusa/pdf/EU_vs_USA_English.pdf
1 comment:
This is complete nonsense...the GDP in America might be higher, but this doesn't show how the wealth is distributed ..and America is also below Switzerland, not only below Luxembourg.
The thing what you should look at is the HDI index, but even then you can't tell if a Country really has a better living standard, because there's no doubt that Luxembourg has a way better living standard then the US, at least judging by my personal observations.
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