4 ms·
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
by thiago_fm 11mo ago
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.