3 ms·

> Will Europe ever start asking why it is falling behind the USA? Compared to when exactly? The USA has played a major role in winning World War II when most W

> Will Europe ever start asking why it is falling behind the USA? Compared to when exactly? The USA has played a major role in winning World War II when most Western European countries were occupied (read: lost already). Then, they funded the rise of the United Kingdom, France, and Germany through the Marshall Plan in 1948. Then, the USA pushed against Russia. Honestly, no Western democracy was really interested in becoming part of the Soviet Union, so having some USA backup was not bad. The USA flew circles around the Soviet engineering. Literally actually since the USA spy planes first flew too high for Soviet rockets to shoot down and when that didn't work anymore they flew too fast for Soviet rockets to shoot down. Then the USA military helped invent computer chips during the Vietnam war (a war which on itself is a bit more questionable, but okay), went to the moon first, and invented the internet. When in this story was Europe not behind the USA?

TheCoelacanth 3y ago
2008ish things were much closer. In 2008, US GDP per capita was comparable to many large western European countries with the US at $48k, UK $47k, France $45k, Germany $45k, Italy $41k, Sweden $56k. In 2022, the US was at $76k, UK $46k, France $41k, Germany $48k, Italy $34k, Sweden $56k.
- apexalpha 3y ago
  You're expressing it in USD, while European economies use the Euro. In the timeframe you mention the USD/EUR exchange rate went from $1.50 per €1 to $1.09 per €1. This alone accounts for most of the difference. You should look at GDP PPP for a better idea of actual economic impact. There will still be a difference as the US is simply a more competitive economy. But it isn't nearly as big as in these numbers.
  - TheCoelacanth 3y ago
    Exchange rates change for a reason. The stronger exchange rate is a reflection of a stronger economy.
    - apexalpha 3y ago
      It's mostly a factor of interest rates. And the USD is also the global reserve currency, helping it rise in times of instability, more so than the Euro. But none the less, it still enormously skews your numbers in favour of the US, to the point they're practically useless. According to your numbers the economy of France and Italy have shrunk over a period of 15 years. This is simply not the case. You should look at GDP PPP.

TheCoelacanth 3y ago

2008ish things were much closer. In 2008, US GDP per capita was comparable to many large western European countries with the US at $48k, UK $47k, France $45k, Germany $45k, Italy $41k, Sweden $56k. In 2022, the US was at $76k, UK $46k, France $41k, Germany $48k, Italy $34k, Sweden $56k.

apexalpha 3y ago
You're expressing it in USD, while European economies use the Euro. In the timeframe you mention the USD/EUR exchange rate went from $1.50 per €1 to $1.09 per €1. This alone accounts for most of the difference. You should look at GDP PPP for a better idea of actual economic impact. There will still be a difference as the US is simply a more competitive economy. But it isn't nearly as big as in these numbers.
- TheCoelacanth 3y ago
  Exchange rates change for a reason. The stronger exchange rate is a reflection of a stronger economy.
  - apexalpha 3y ago
    It's mostly a factor of interest rates. And the USD is also the global reserve currency, helping it rise in times of instability, more so than the Euro. But none the less, it still enormously skews your numbers in favour of the US, to the point they're practically useless. According to your numbers the economy of France and Italy have shrunk over a period of 15 years. This is simply not the case. You should look at GDP PPP.