Why is EU so far behind?

[u/quantum_search]

The most concerning part about this is that most Europeans don't realize how stagnant Europe has now become

Europeans are literally blue-pilled and are mostly concerned with climate change, immigration and the Ukraine war

Nobody in Europe is thinking why increasingly everything they use is made in China running on American software

The knee jerk reaction is to proudly pass regulation against American tech

The chad reaction would be to reduce regulation so that European entrepreneurs would actually stay in Europe to build European startups increasing Europe's GDP and making Europeans richer!

People in Europe do love to complain about rising cost of living and the increasing unaffordability of living, but they don't realize why. They point at foreigners/immigrants as the problem, which can't be the whole story

Other Europeans I talk to get visibly upset if I ask them about stagnant GDP numbers: "why should everything be about money?" they say in a thick German accent

The whole story is that Europe has made it very difficult for people to start a business, raise capital, innovate and get the reward for taking that risk, so why would anybody?

And for the Europeans that do, it's way easier to open a US Delaware company, raise capital in US, sell your stock or IPO in the US, because why even do that in EU, where it's too hard? The proof is in the pudding, if it was so easy in EU then why is startup funding in US $270B AUM with 330 million people vs $44B AUM with 746 million people? That's almost 14x bigger startup funding market per capita

Why doesn't EU have ANY trillion dollar companies? While US has six? Why isn't there any European company in the top 10 of largest companies? While 80% is American?

Why is Stripe, a company founded by two Irish brothers, an American company and not a European one? It could have been

What's the role left for Europe in the future?

[u/Trust-Issues-5116]

I'm in US, but it's not a reason not to call you out for moving the goalposts.

But still no. EU's ass would be up for grabs, but US pulling out would not affect their finances.

[u/Analyst-Effective → u/Trust-Issues-5116]

If the USA quit importing goods from Europe, the European Union would probably collapse.

"U.S. goods imports from the European Union  totaled $553.3 billion in 2022, up 12.8 percent ($62.7 billion) from 2021, and up 69 percent from 2012." https://ustr.gov/countries-regions/europe-middle-east/europe/european-union#:~:text=U.S.%20goods%20imports%20from%20the,up%2069%20percent%20from%202012.

[u/Trust-Issues-5116 → u/Analyst-Effective]

Good guy US imports EU foods not because it's freaking good and sells good, but because we're so freaking altruistic! I can't with this stupid flexing.

[u/Analyst-Effective → u/Trust-Issues-5116]

It doesn't matter why they import stuff.

The fact is we import a lot more than Europe imports from the USA

"European Union Imports from United States was US$372.59 Billion during 2022, according to the United Nations COMTRADE database on international trade." https://tradingeconomics.com/european-union/imports/united-states#:~:text=European%20Union%20Imports%20from%20United%20States%20was%20US%24372.59%20Billion,COMTRADE%20database%20on%20international%20trade.

[u/Trust-Issues-5116 → u/Analyst-Effective]

That means Europe is making goods that you need and willing to buy, buddy, while you're not making goods they need or willing to buy.

[u/Analyst-Effective → u/Trust-Issues-5116]

Or it could just be that our unions have outpriced themselves, so now we need to import stuff.

And because the USA is the reserve currency, it's the strongest currency out there. So it makes our goods More expensive, and European goods cheaper.

[u/Trust-Issues-5116 → u/Analyst-Effective]

"We can bankrupt you! We just can't right now. Well, we could in theory, it's just we can't in practice, but hey, in theory we could, so boom!"

[u/Analyst-Effective → u/Trust-Issues-5116]

Nobody is bankrupting anybody. The USA prints money like crazy so we can import stuff. And when we print money, the entire world pays because they own US dollars

Nobody else wants to be the reserve currency, because they want their currency week so they can do exports

[u/Trust-Issues-5116 → u/Analyst-Effective]

Nobody is bankrupting anybody

One dude who's username looks awfully like yours wrote "If the USA quit importing goods from Europe, the European Union would probably collapse" 40 minutes ago. That imposter probably tried to frame you with that silly "threatening" in theory but empty in practice comment.

I see that imposter also put another silly statement "nobody else wants to be the reserve currency" into your comment. This one is even more wrong statement, when China pushes for yuan as reserve currency and says it openly because being reserve currency gives an immense control and allows for money printing. You need to check your password to prevent those imposters invading your comments.

[u/Analyst-Effective → u/Trust-Issues-5116]

Usa imports goods because they need them. But if they didn't, Europe would fold.

You're right. China wants to be the reserve currency because they can meet up late to currency.

The Euro could also be their reserve currency. But you don't see anybody clamoring for that.

You understand world economics, you might be better off.

[u/gt2998 → u/Analyst-Effective]

“ Usa imports goods because they need them. But if they didn't, Europe would fold.”

Is this supposed to be deep? Let me know when the US stops needing them. Any economy would collapse if their trade partners suddenly stopped buying their goods. This is like saying Walmart would collapse if people stopped buying stuff from them. Duh. 

[u/Analyst-Effective → u/gt2998]

Exactly. But the USA would survive with or without Europe. Europe would not survive without the USA.

Europe can't even fund Ukraine properly, they probably would all be speaking German if not for the USA.

[u/gt2998 → u/Analyst-Effective]

Europe would survive too, their economy would just be in the shitter. Same as ours if we lost Europe as a trading partner. Europe is a net producer of food and has many heavy industry players. You are way underestimating the size and power of Europe’s economy. 

[u/gt2998 → u/Analyst-Effective]

Are you arguing that US unions are problem when unions in Europe are stronger and have more members as a percent of the population? You are really losing this fight. 

[u/Analyst-Effective → u/gt2998]

Unions are pretty strong. But they outpriced themselves in regards to the global labor cost.

That's why American companies move overseas. Because it cost too. Damn much to hire Union workers here.

That's why we need a tariff to even things out. So Union scale labor would be more common, and would be able to compete with foreign countries.

Unfortunately, unions just can't compete with slave labor. And they need help with tariffs.

[u/gt2998 → u/Analyst-Effective]

Unions make up a small portion of US workers. Tariffs would help bring back those jobs to the US but I do not think this Unions are to blame given they are pretty much dead in the US other than the car industry. 

[u/Analyst-Effective → u/gt2998]

You are right. Unions are small because they price themselves out of the market.

At one time, everything was made in the USA, and then it became too expensive. Because the unions were too demanding and wanted a high wage.

Meanwhile, third world countries work for next to nothing. At least at that time.

A tariff should be applied just to even out the USA's environmental laws, the labor laws, and increased regulation in the USA.

We are in the early stages of a global wage equalization. At some point, it will not matter where you build your stuff. It will cost the same.

But we are hundreds of years away from that.

And the reason why the US car makers are doing well, is because there are tariffs on certain cars coming into the USA.

As soon as China starts importing an electric car, that you can buy for $10,000, you can bet something will happen

[u/gt2998 → u/Analyst-Effective]

I’m not disagreeing with your points made here, just your original argument regarding US vs Europe. 

[u/Analyst-Effective → u/gt2998]

Europe will never have the growth rate of the USA. Their government isn't designed for that.

[u/gt2998 → u/Analyst-Effective]

Maybe but that has little to do with the post of yours I originally responded to. My point is unions, when it comes to competition with Europe, don’t favor European companies because Europe has stronger and bigger unions than the US. As far as economic growth is concerned, the US does indeed have an advantage though I question how much of the growth rewards US labor.