Europe vs. US: Who’s Winning?
People love to cherry-pick statistics to show that the US, or Europe, is winning the growth game. That got me curious: if you look at all the possible growth periods, who’s ahead (most)? Short answer: no clear winner. The results look pretty random. Over the longest periods, Europe is consistently ahead. But some shorter but still lengthy periods give the US the advantage.
Change in real GDP per capita (PPP), difference between EU and US
US growth percentage minus EU15 growth percentage (positive numbers=US ahead)
Starting years at left, ending years, top. Gray is >29 years. Outline is >19 years.
Here’s the same table expressed as a percentage difference.
(US growth %-EU growth%)/EU growth %
All data is from the OECD. I just did the arithmetic.
Related posts:
oldfaithless: “How were the benefits of growth distributed in Europe vs US?”
Some of the answer is here, showing “absolute” poverty rates:
http://www.asymptosis.com/us-poverty-were-2.html
In nine countries (including the US), 7.6% of households live on less than 32% of the US median. In the US, 12.4% live below that level.
Kenworthy has shown that transfer payments and social support are the primary reason for less inequality and poverty in developed countries.
Market-driven inequality/poverty is about the same, US versus Europe. Europe corrects for it with transfer payments and social support programs (health care, child care, etc.)
And they continue to grow as fast as we do. Go figger.
A related question: How were the benefits of growth distributed in Europe vs US?