I’m dubious. If cross-Atlantic productivity is roughly equivalent, then why are living standards so much higher in the U.S.? Why do people in 46 of our 50 states live better from their labor than the average European?
Some possiblities come to mind:
1. In Europe, some small group is benefiting disproportionately from the labor of others, leaving the rest exploited and impoverished. Since Europeans claim to have built a system that makes that impossible, we’ll let it pass.
2. Much of Europe’s productivity, as measured by GNP figures, does little to help and perhaps even harms living standards. An obviously example would be EU regulations that generate quite a bit of economic activity (by regulators and those who carry out their mandate), but that do nothing or may even lower living standards.
There’s also the unemployment issue. If the French are so productive in a real sense rather than simply an artifact of GNP numbrs, they should be finding markets and putting more and more people to work. That doesn’t seem to be happening.
