New numbers say the European Union has joined Japan in the “lost decades” brigade, with per-person gross domestic product in dollar terms nearly flat since 2008.
According to the Organization for Economic Cooperation and Development, while disposable household income in the U.S. is $51,000, it’s just $39,000 in Germany, $34,000 in France, $29,000 in Italy, and $21,000 in Greece. For perspective, Mexico is about $16,000.
Why is Europe fading? Simple: Government took over. Government spending is nearly half of Europe’s GDP, which hogs physical resources—steel, workers, etc.—while predatory tax rates punish production and welfare tempts workers away. Nobody produces, everybody takes.
Add in mandates from environment to social policy that hike prices and slap straitjackets on companies, and the smart ones leave, the rest grimly soldier on, staying in business till their factories wear out, then it’s lights out.
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