Wall Street Journal: Europeans have a new economic reality

Europeans are getting poorer, and this is their new economic reality. At the same time, Americans continue to get richer, according to The Wall Street Journal.

Europeans are facing a new economic reality they haven't seen in decades. They are getting poorer… Finns are encouraged to visit saunas on windy days when electricity is cheaper. Across Germany, consumption of meat and milk fell to its lowest level in three decades. Europe has slipped into recession, reinforcing the sense of economic, political and military decline that began at the turn of the century

— emphasized in the publication.

The ills of European society were exacerbated by the crisis that arose from the destruction of global supply chains and caused a sharp rise in energy and food prices. The problem became even more serious after the reaction to the crisis of European governments, the newspaper notes.

In his view, high energy costs and runaway inflation at levels not seen since the 1970s are reducing producers' price advantage in international markets. Europe's weakness is its heavy dependence on exports, which account for about 50% of eurozone GDP compared to 10% in the US.

The WSJ pointed out that in Brussels, one of Europe's richest cities, teachers and nurses are queuing for half-price groceries off the back of a truck. Similar services are distributed throughout the continent.

Over the past 15 years, measured in dollars, the eurozone economy has grown by about 6% and the US economy by 82%. The average EU country per capita has become poorer than any US state except Idaho and Mississippi. If this trend continues, by 2035 the gap between per capita output in the US and the EU will be as large as it is now between Japan and Ecuador.

As European governments need to increase defense spending and borrowing costs rise, economists are expecting higher taxes. Taxes in Europe are already high. American workers take home almost three-quarters of their wages, while French and German workers take home only half

- the article says.
  • Photos used: Alex Proimos/wikimedia.org
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  1. Irek Offline Irek
    Irek (Paparazzi Kazan) 26 July 2023 14: 55
    Enough, in the nineties we were robbed and ate, now the feeder has closed, live on your own.
  2. strange guest Offline strange guest
    strange guest (Strange Guest) 26 July 2023 15: 21
    And I would also stand in line to buy groceries at half price. No one is selling
  3. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 26 July 2023 22: 49
    The following factors have a negative impact on the EU economy:
    1. If earlier the dominance of the United States did not leave a choice, then the growth of the PRC economy provided such a choice
    2. Attempted political economic blockade of the Russian Federation led to an increase in production costs
    3. Different levels of economic development and an increase in outright dependents reduce the economic performance of the EU
  4. Sergey Sergey_2 Offline Sergey Sergey_2
    Sergey Sergey_2 (Sergey Sergey) 29 July 2023 07: 58
    We still didn’t have enough refugees in rainbow shorts ...