So while US broke the glass and did our bail-outs, the EU tried to extend & pretend for years longer. Kind of the Japan bubble response.
The rest can probably be explained by 1)regulatory differences causing huge disparity in industries driving growth where you had substantially all the growth coming from tech in US and 2) demographic differences where Europe is older and aging more rapidly than US, so you have a higher budget burden.
And also labor laws and the red tape in company regulations.
US did bailouts & stimulus, and now compared to COVID arguably far too little stimulus for partisan reasons. Meanwhile the EU was implementing austerity due partially to Germans incessant inflation fears.
But at least the sign was in the right direction.
I remember at the time reading what the European Central Bank was doing and going it's not acting like a central bank. Was trying to squeeze blood out of the less economically developed southern countries to protect French and German Banks from their own underwriting failures.
So that austerity means their response was destructive.
Reaching for a New Deal: Ambitious Governance, Economic Meltdown, and Polarized Politics in Obama's First Two Years
21st Century Monetary Policy: The Federal Reserve from the Great Inflation to Covid-19
The European Central Bank Between the Financial Crisis and Populisms
Remaking European Political Economies: Financial Assistance in the Euro Crisis
Political and Economic Dynamics of the Eurozone Crisis
(I saw a claim here on HN the other day that the state of mississippi has a higher GDP/capita than europe in general; while I don't know if that be true [my corner of western europe being over twice on that scale], the two potential explanations [based on my memories of a neighbouring state] which sprung to mind were: (a) the benefit of the general productivity of mississippi may be concentrated [and perhaps not even among those living there], or (b) GDP/capita is a better indicator for finance than prosperity)
Its a very rough indicator. Silicon Valley and the poorest county in Mississippi are in deep contrast to each other. California has one of the highest GDPs per capita in the world. Mississippi has the lowest in the USA.
As a French, I can tell you that the reason the GDP doesn't grow is because France is absolutely failing at any sort of innovation. So are most EU countries.
This is self-inflicted damage, nothing to do with 2008.
Not in the tweet, but the austerity policies pushed by the ECB in the aftermath of the crisis has been shown to have significantly slowed down economic growth [0]
[0] - https://www.nber.org/system/files/working_papers/w23147/w231...
Take a look at the polling booths today to see those who remember the Eurozone crisis.
Since "they" were for Brexit "we" must be against it, with "it" thus resulting in an ever-firmer embrace of all that the EU says and does. Since then we've seen every single ailment in the UK blamed on Brexit (while every single time the UK does better than continental Europe blithely ignored), even while similar pressures/desires elsewhere are ignored. Macron admitted in 2018 that the French would probably have voted to leave in a UK-style referendum. <https://www.theguardian.com/world/2018/jan/21/emmanuel-macro...>
Because if i look at the politics and the topics that are a huge problem in the USA right now, it's that those struggle equally or even more then the european households.
And this meshes with the knowledge the USA has basically gone on a money printing rampage since 2008, more than any other country that shows up on these graphs. By the amount of money printing and the hypothesis that money printing is the cause of inflation, the US$ should be worth half.
It meshes with the rise of the USA's stock market indices while most of the rest of the world was flat. If the US$ had halved in value (since 2008) but publicly traded companies were still producing the same real profits, indices would have about doubled (since 2008). They have.
So why isn't the currency exchange rate reflecting that?
Secondary EU and USA interests are different, simply, we have still a bit of industry but not natural resources and space, Russian Federation have them and with our tech we could be again a balanced (no one of the two can oppress/rule the other) superpower no one in the world, USA and China combined, could beat us. We committed suicide with two world war, maybe it's time to avoid a third one.
Tertiary UE dense cities are simply untenable and have no reasons to be kept in modern time, after globalization and IT/TLC revolution it's about time to stop wasting enormous resources in concentration and spread again. USA need cities to have large slice of poor easy to be used as Ford model workers because USA have domestic resources, we have not, we can't compete in that term, but we are capable of crafting things together, meaning we can cooperate in a spread and very diverse system, with different languages and laws as well.
Sorry guys, that's is. The world is vary and anyone have it's own interests.
