In a world where industry constitutes a large share of GDP and is ruled by increasing returns to scale, we would expect more demand US translate into higher productivity growth.
What happened in 2010 that had US grow and EU decline ?
Isn’t this partly because the US decided to fuel their growth with debt and printing money, where as the EU reaction to the financial crisis in 2008 was austerity and regulation.
US workers exploitation has also risen much faster lately.
Yeah and they dont give a fuck about envornment in the US
What is the Y axis supposed to be?
In any case, is “higher productivity” better for an average citizen or worker? US is more productive but wealth inequality is even worse than Europe. Seems like it only benifits the rich. Poor workers rights seem to be the trick to unlocking high productivity.
EU has to be aware of not over-doing regulations to ensure business can survive here, but I would hate to see US style work conditions here. That would be a race to the bottom.
The numbers from Ourworldindata are so different that I’m lost.
All Europe needs to do is to scrap the labour laws and go back to 1857 and we can turn this around.
US as an economy invests massively into making its workers and businesses more efficient. Any industry you can imagine, take a look at the American equivalent and it’s amazing how similar but how much more efficient many parts of their processes are. There’s a reason they lead in global innovations.
Now do EU including non Eurozone countries of the EU
how is productivity measured?
How about salary?
Very very misleading chart, without labels. **Productivity** has not risen much faster in the US. **Production** (GDP) has. Productivity gains in the US and Europe has been comparable (1)
The much faster rise in GDP and GDP per capita in the US has primarily to do with the labor force structure. More people are retiring in Europe, lowering the GDP per person, but **not per worker** (Productivity). So all of these theories of people “why the US has increased its productivity” are wrong, it’s just that more people retired in Europe.
How was the 2008 financial crisis a SPIKE in productivity?
Edit: and the COVID pandemic too.
USA grows so much because they keep deficit spending a lot even when there is economic booms.
The slump is real.
Yeah, but I have a better work-life balance.
11 weeks’ holiday a year. 😎
Speaking as an American, I can attest that this has been accomplished at least in part by bleeding our middle class, natural systems and infrastructure dry. There’s going to be a reckoning, where the piper has to be paid, and I don’t look forward to it.
Probably the massive finance and tech sector that is rising productivity so much. I doubt the average american can build a car or serve KFC so much faster than the EU citizen.
And still our life quality is much higher. Now what does one value more? Productivity or life quality?
ITT: Same European elitism that plagues any discussion about economic issues. It’s fine to acknowledge that Europe is behind in some areas without dismissing the positive things that we do have.
And yes, some of the growth the US enjoys is fueled by debt and questionable working practices, but also keep in mind that many of the major innovations that happened in the past few decades happened in America.
The US: personal computers (and almost all their operating systems), transistors, integrated circuits, smartphones, the internet, satelite internet, reusable space rockets, electric vehicles, AI, cloud computing, GPS, VR, e-commerce, streaming, crypto
Europe: cookie banners
People don’t realize that the quality of life us Europeans enjoy doesn’t come for free, and it won’t last unless we drop the elitism when discussing economic issues.
Lots of cope in this thread. This is one of hundreds of articles pointing out that the EU productivity and GDP has slowed a great deal and it’s not improving.
People are in such denial on this sub it’s terrifying, with such mentality it can only get worse
28 comments
Source
https://www.ft.com/content/22089f01-8468-4905-8e36-fd35d2b2293e
US: expansionary fiscal policy
Eurozone: austerity policy
In a world where industry constitutes a large share of GDP and is ruled by increasing returns to scale, we would expect more demand US translate into higher productivity growth.
What happened in 2010 that had US grow and EU decline ?
Isn’t this partly because the US decided to fuel their growth with debt and printing money, where as the EU reaction to the financial crisis in 2008 was austerity and regulation.
US workers exploitation has also risen much faster lately.
Yeah and they dont give a fuck about envornment in the US
What is the Y axis supposed to be?
In any case, is “higher productivity” better for an average citizen or worker? US is more productive but wealth inequality is even worse than Europe. Seems like it only benifits the rich. Poor workers rights seem to be the trick to unlocking high productivity.
EU has to be aware of not over-doing regulations to ensure business can survive here, but I would hate to see US style work conditions here. That would be a race to the bottom.
The numbers from Ourworldindata are so different that I’m lost.
What is real, rebased? Is that the difference?
[https://imgur.com/d8z33bP](https://imgur.com/d8z33bP)
Edit: and also starting at 2004 like FT:
https://i.imgur.com/nVSJHE9.png
All Europe needs to do is to scrap the labour laws and go back to 1857 and we can turn this around.
US as an economy invests massively into making its workers and businesses more efficient. Any industry you can imagine, take a look at the American equivalent and it’s amazing how similar but how much more efficient many parts of their processes are. There’s a reason they lead in global innovations.
Any chart with China shown as a comparator?
Thanks Merkel.
They also have other rises unfortunately.
[https://imgur.com/a/RKYyoBE](https://imgur.com/a/RKYyoBE)
[https://ourworldindata.org/suicide](https://ourworldindata.org/suicide)
How about quality of life?
Now do EU including non Eurozone countries of the EU
how is productivity measured?
How about salary?
Very very misleading chart, without labels. **Productivity** has not risen much faster in the US. **Production** (GDP) has. Productivity gains in the US and Europe has been comparable (1)
The much faster rise in GDP and GDP per capita in the US has primarily to do with the labor force structure. More people are retiring in Europe, lowering the GDP per person, but **not per worker** (Productivity). So all of these theories of people “why the US has increased its productivity” are wrong, it’s just that more people retired in Europe.
(1) [https://data.oecd.org/lprdty/gdp-per-hour-worked.htm](https://data.oecd.org/lprdty/gdp-per-hour-worked.htm)
1) Productivity is linked to GDP per capita (and probably, in nominal USD). This is a stupid metric.
2) The US national debt grew like 8% last year for 2.5% GDP growth.
[https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.KD?end=2022&locations=US-EU&start=2006](https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.KD?end=2022&locations=US-EU&start=2006)
You only need to look at this to realise how stupid these ‘US vs Europe’ comparisons are, the US has grown 16% and the EU has grown 15%.
By [current international dollars](https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?end=2022&locations=US-EU&start=2007) .. the EU has grown 75% and the US has grown 58%.
How was the 2008 financial crisis a SPIKE in productivity?
Edit: and the COVID pandemic too.
USA grows so much because they keep deficit spending a lot even when there is economic booms.
The slump is real.
Yeah, but I have a better work-life balance.
11 weeks’ holiday a year. 😎
Speaking as an American, I can attest that this has been accomplished at least in part by bleeding our middle class, natural systems and infrastructure dry. There’s going to be a reckoning, where the piper has to be paid, and I don’t look forward to it.
Probably the massive finance and tech sector that is rising productivity so much. I doubt the average american can build a car or serve KFC so much faster than the EU citizen.
And still our life quality is much higher. Now what does one value more? Productivity or life quality?
ITT: Same European elitism that plagues any discussion about economic issues. It’s fine to acknowledge that Europe is behind in some areas without dismissing the positive things that we do have.
And yes, some of the growth the US enjoys is fueled by debt and questionable working practices, but also keep in mind that many of the major innovations that happened in the past few decades happened in America.
The US: personal computers (and almost all their operating systems), transistors, integrated circuits, smartphones, the internet, satelite internet, reusable space rockets, electric vehicles, AI, cloud computing, GPS, VR, e-commerce, streaming, crypto
Europe: cookie banners
People don’t realize that the quality of life us Europeans enjoy doesn’t come for free, and it won’t last unless we drop the elitism when discussing economic issues.
Lots of cope in this thread. This is one of hundreds of articles pointing out that the EU productivity and GDP has slowed a great deal and it’s not improving.
People are in such denial on this sub it’s terrifying, with such mentality it can only get worse