I think regulation for big companies is not a bad thing but this regulations for start ups is killing them and making it more difficult for new companies to emerge in Europe.
I think the lack of investment is a much worse problem. Europe actually has a significantly more fragmented corporate scene, in fact the same economists talking about 'missing trillions' are usually also calling for allowing more mergers and larger corporations. Most EU directives have exemptions for smaller companies anyways.
I believe that blaiming regulation is a bad excuse. Regulation on digitalization was not even contemplated when Meta, Microsoft and Anazon were created.
@@larslarsen5414 Yeah a lot of people seem to forget that the hyper-growth of Big Tech _predates_ almost all EU tech regulations. Those came later as a response, they can't be the cause unless the EU can time travel. Also, most EU regulations are just things that either were or would be done by member states themselves. In fact, many member states complain that EU directives are de-facto deregulation, from their perspective.
What baffles me is, we produce the worlds best micro-chip machines and yet use hardly any of them ourselves. We don't invest enough in new industries it's a little sad. I think we are stuck in the mindset of; why make it when you can purchase it abroad.
may not be 100% correct, but you can look at the microchip machine's history. The best micro-chip machine makers were Japanese and at that time ASML was nobody. How ASML catch up? you should ask the American government.
Because we can’t afford the things we produce (allegedly, somehow there are billions spent for other matters, I won’t elaborate). We can’t even afford the top tier trains that Siemens builds for other countries
Making the machine requires a few high tech employees and a little energy. Running the machines require lots of energy. EU is not energy cheap - US & China are due to their more 'relaxed' environmental laws.
@@stanleyzhang8154That doesn’t really impact this conversation. Yes the US holds the patent for EUV technology, which is integral to ASML’s cutting edge machines… but it’s not like the US is blocking them from selling EUV to Germany or Sweden for instance, the problem is that those countries don’t have companies that would use one in the first place
Europe has a bureaucracy problem. Regulations can be fine, don't share private data, dont overly pollute environment. However the bureaucracy of enforcement absolutely strangles any business preventing growth.
If the energy price in EU is 4 times higher than Europeans must be 4 times smarter than Chinese/Americans. For example, EU people can invent machines that travel across universe at near lighting speed, or across time. Then even if they decide to work 1-day workweek, their GDP will be still higher than that of China/America.
The EU is killing everything with overregulation. I own two small businesses, and it’s not easy. Taxation is high, and everything is slow and painful. Bigger companies still have some power to compete, but smaller ones are deeply struggling. The saddest part of all this isn’t just the taxes, bureaucracy, or lack of digitalization-it’s the people who willingly accept this nonsense every day. No one sees the problem. It’s mind-blowing.
Now you can understand the reason and smart decision it was for the British to leave the EU. The EU is run by a bunch of bureaucrats who get richer by the hour for complicit regulations that they create. Just look at all the times they have sued American companies over BS issues for billions of Euros.
But we do have amazing startups, unfortunately they leave for the USA because of Europe's malignant bureaucracy. For some reason we also refuse to incorporate English as a mandatory second language for business
Not many people know this: English is easy to learn because it is easy, or because it is simplified? Due to it used everywhere in the world as non-native language, the grammar and tolelerance must be great to accommodate different people with different background. So English must be simplified UNINTENTIONALLY overtime. When you as a writer want to approach the WORLD audience, you'd be better to write simplified English. This is not true with German. Just 83 million Germans. Even in Austria and Swizerland, people talk a different language (not German). As an isolated place (just Germany), the German native speakers have no incentive to simplify it (it's just their OWN bubble, their own "thing").
@@oceanwave4502 Idk bro, im Austrian, im pretty sure i speak Hochdeutsch. And honestly idk whats ur yapping with simplified english, what are you on about?
@@oceanwave4502I would argue French or Italian are far far easier to learn and speak than English. And more beautiful as well, not to mention that they are both European
@@oceanwave4502 There's a reason why English still remains the most important international language. If U.S. economy looked like Germany or France people would rather learn French and German than English
Unlike the USA or China we aren’t a economically homogeneous country, france will not give advantage to a German company and vice versa, we dislike monopolies in Europe so our tech companies are “specialized” in a sector instead, multiple language, lots of small countries that makes expanding difficult or limited to neighboring countries with similar cultures, local regulations,tax laws ect. L
@@uhohhotdog Agreed. In fact I'll go a few steps further, Europe needs a common army, government, shared border, common debt and of course a common language. That is the only way forward. What do you think?
Europe faces a systemic issue as it lacks tech companies driving innovation, with leaders in technology, space, and electric vehicles mainly coming from the U.S., China, or Asia. This dependence weakens the continent, hampers growth, and exacerbates debt problems it cannot effectively tackle.
This happens then you let the whole world being Controlled by the united states of Israel who just want to create one world order and one currency the dollar just boycott the dollar and don’t buy american products!
Sweden is a leading innovator, we need to follow the Swedish model, we don't need to be like the US or China, we can follow our own path, but that means less regulation and less/smarter taxation.
that`s not the only problem BUT the companies could not grow could not reinvent themselves EU is not working as a whole Brussels does not have any power to change countries trajectories fundamentally europeans choosed NOT to be a country which => in fractures and companies can`t expand cant grow and progress eventually leads to lack of innovation and finally bankruptcy EU no longer has even 5 companies in top 100
The work force is shrinking cause the youth just want to be influencers and not put in the extra effort. They always have their hands out. The younger generation are lazy 😊
@@intuitivediane Thats the classic boomer narrative and plain false - at least in germany. If we look at the actual number, you can see that the german folks in employable age are currently working more working hours per week as anytime before in the last 50 years
@@intuitivedianenah, the ppl who become influencers are the type that wasn’t going to work anyway, they are just born rich and they can afford to play games all day
Shouldn't be comparing company valuation with country's GDP. GDP is wealth that's generated every year, whereas valuation falls when stock prices fall.
GDP can also fall when stock prices fall. See China’s collapsing real estate market for evidence, which at one point made up a quarter of the country’s GDP before it imploded.
You forgot about another important factor: ENERGY PRICES. Energy is becoming more costly and it's not affordable to produce things in many parts of Europe anymore, while at the same time energy prices keep rising even more, partially because of not being a "green energy".
It’s not just that - the euros are just too comfortable. The lack the drive and the hustle to do better. I was at meetings for Corus (steel) when it was in trouble and what struck me was that the company back then was going to go under, but the guys there instead of staying after 4, were more concerned about making it home on time than their employer going bust!!!
The biggest lie the US is constantly telling the world that world can‘t live with US while the whole world can live better and rise without US because who has built up US through hard work up the germans who are now living in US, they need to distance themselves from US because US will be nobody without them!
@@sophieblau845 U.S. dollar isn't your problem, the Euro is stronger. The issue is Europeans are more concerned about leaser, early retirement and social welfare programs.
5:33 why’s bloomberg of all publications conflating market capitalisations with GDP? for all their impressive market cap figures, their profits would be a better proxy for GDP (assuming all of profits emanate from value addition which’s pushing the envelope) and assuming an average PE of 25, the 8 trillion figure shrinks to 320 billion. Or on the other hand, if you’re to compare market caps, 61 trillion for the US equities compared to 56 trillion for the euronext
@@danielrojas399 Would be better to compare turnovers and profits. And in Europe larger proportion of services is produced/controlled by the government which explains some of this - and efficiently too. This is also comparing publicly traded companies and lacking other companies. Wouldn't pay much attention to this figure let alone any other single indicator.
@@McSlobo The facts speak for themselves. The economy in Europe has been stagnant the last ten years, basically we lost a decade. There hasn’t been any growth, any increase in wages and instead only losses to purchasing power. On the other hand, the Americans have multiplied their purchasing power and the American economy has tripled. I had to move from Spain to Switzerland because the EU economy is terrible. Switzerland is like an economic island in the heart of Europe where people can actually afford stuff. In Switzerland there’s people from all over the EU working here for the same reason. Economy.
@@danielrojas399 What about non-public companies? They should be added into the mix. But I am not sure what that will tell us. More like where it has been than where it is going.
I am a tech worker from Europe, worked in many places around the world. In my experience, Europe has the best engineering teams (yes, including the US) and no shortage of startups and ideas. But none of that seems to go anywhere. Part of it is lack of VC funding. But I think it's also a self-reinforcing culture. Startups fizzle out, so the best employees avoid them. Therefore startups fizzle out.
@@JT_ytspawn Maybe NASA could send some science and research crafts into space. Just to catch up with the ESA, hm? Instead of blowing money left and right. We love your JWST but keep in mind it will be surpassed with the two coming to service huge telescopes made by ESO.
@@HanSolo__ **Scope and Size**: NASA has a larger budget and scope compared to ESA, allowing for a broader range of missions and extensive human spaceflight capabilities. - **Focus Areas**: NASA emphasizes deep space exploration, planetary science, and human spaceflight, while ESA has a strong focus on satellite technology, Earth observation, and international collaboration.
@@JT_ytspawn "NASA has a larger budget and scope compared to ESA" And? What does that matter when the only thing they're experts at, is to waste money? The only reason USA has a functional spaceflight capability today is by relying on private corporations, which in turn only exists and works today as they do, thanks to buying up a lot of old Soviet spacetech in the 90s and 00s. "Best engineering teams" Better than USA on average, easily yes. "look at the research papers coming out of US universities and compare them to European universities in tech." Uh-huh, and WHO writes those papers? Generally not the natives of USA. 1/4 are Europeans, another 1/4 are Chinese.
Cultural difference. Europe has long benefited from it's early industrialization, when you look around nobody is working or wanting to start businesses. Compare that to America or China.
@@PentangleYT Would be nice if that was so, but usually it has more to do with the power relationship between employer and employed. If we were going off of value added, turning a bus that stands around into a bus that transports people where they want to (and need to) be certainly adds a lot of value to the overall value and functioning of a society.
Try to fabricate a car, an elevator or even a pressure vessel in the EU, and you'll have to hire Norm experts, pay certifications and inspections for every little process, while facing high salaries for many arrogant and lazy people, high taxes, and high energy costs. That is Europe's metalurgic industry at the moment.
you have to meet the same regulations if you import valves from China. It's not about requirements, but about the prices of materials, energy and margins for intermediaries.
Easy peasy. The formula for data centers is cheap energy, available land, access to rivers and infrastructure. European IT-developers are not worse than american ones, european scientists are not worse than american and chinese ones. On top of that all we got from the EU is more regulation, paper straws and no market integration, which was the main reason for the EUs existence. Big corporations on the european continent are old archaic constructs married to politicians that ensure no new players will ever enter an existing market. Old families hold old money and rather invest it in champaign bottles than into the future of europe. The EU burocratic machine pumps out regulation after regulation where only the big corporations can keep up, and new startups and challangers will simply go under a tsunami of sensless and worthless burocracy. This year alone over 60'000 !!!! new regulations were made 3x more than the US for something that isn't even a single market. In the EU we only have poeple sitting there that know how to regulate so they keep on regulation day and night to justify their existence in this cancerous system.
@HaxorMy that is totally wrong . Your " misinformation " is total , and according to the Masters of the EU and its deluded ,extremist lieing supporters , that is a criminal offence these days . Funny isn't it , how the EU is a dictatorship, and it's supporters just love enforcing dictatorship and jailing people Hmmmm
The EU is behind to some degree, but it's kinda funny that every year for the past 15 years there's been an article about how Europe is about to collapse and promptly every year nothing happens. Also, it's very strange to bunch together the USA and China because if the metric is nominal bigness of econometrics, the real GDP of Europe is still leagues ahead of China, which is still very poor (by those metrics).
@@Blaze6108 Actually, no. In nominal, they're roughly equal but, by PPP, China is higher. Obviously, it has 4x the population. But you're not wrong; that exact thought is applied to China as well.
Europe is overloaded with expensive governments. They should be reduced by 80% to Asian government sizes. Governments themselves in Europe are the problem.
@patrickgz It's true that china has less regulation then 🇪🇺 or 🇺🇸 . But it's nothing envy. I recommend you google China's Milk Scandal. Or listen to what joe rogan have to say about regulation
@@cinpeace353 And look at their PE ratio. Are trough the roof, so the market cap well lets say the prices for these stocks are way too high. Could collapse poof gone market cap.
It is. They only thing people don't know that their financial hubs are in Europe to evade tax. Google financial hub headquarters is in Luxembourg and Apple financial headquarters is in Ireland. All their money is there. The US has the shell company of Google and Apple.
@@samuel.andermattCompletely agree.. But revenue of Google is quite crazy, like Spain’s GDP is more or less 1.5T$ and Google’s yearly revenue is more or less 300B$, so with 5 Google’s you got the whole of Spain’s production.
Right, when economists talk about the “demographic collapse” they mean that of young, skilled, and mobile workers. The senior surge only makes it worse because their dominance in politics just prioritizes funding retiree benefits often at the cost of support for the youth and young families.
@@doujinflip Total population will still decrease but the percentage of the remaining population will still be getting older. That's the other big problem.
When u know u already lost EV industry, don’t focus on competition or tariffs, instead, seek cooperation for survival. To go against the flow is expensive n suicidal.
@@bobtuiliga8691i mean he's right. US is a nice country for 10 or some more % of it's population, maybe even 30 or 40. But for lower class it's way worse than Germany or Nordic countries for instance.
I was the business development manager for a successful US company. We were looking at expanding into Europe. We could not make it work because Europe was inferior in every aspect, meaning everything cost more, was less efficient, and could not support the pricing required to succeed. We made a no-go decision
@@victors4333 me neither ! Workers are respected and protected in Europe. You can't compete vs a country where human life is disposable and paper money is the king.
@@CarpeDiem13x And that is the sad part. We're protecting these things in Europe, so when we're lacking behind, it's because the US and China are more "lenient" and thus business friendly, leading to a business and brain drain
@@Sco10 China and US are like drug dealers making easy money and Europe is a decent worker. We need to find the way to adapt Europe to compete vs world sweat shops without destroying what is most important, humans.
"Workers are respected and protected in Europe" Obviously not by their governments, otherwise they wouldn't be taxing them at 50% for what is considered a lower middle class income (50k - 60k) in the US.
As a small business owner in Germany, I really have felt the bureaucracy everywhere. High taxes, overcomplicated tax systems, endless regulations that keep added so you are not on track anymore, highest energy prices in the world. They make it a nightmare here. No wonder why China and USA are so competitive and thriving.
Everyone wants a "digital era economy". Everyone wants to emulate the US. The thing is that the US economy has never been centrally planned or controlled. That is why innovation is strongest in the US. The nuances of that are a long and complex story. Just think about how many "Silicon ..." efforts there have been in Europe in the last couple of decades. The flaw is that these are government programs. That is not how it works in the US. That is not to say there are no innovative companies in Europe, but their scale is nowhere near that of the US in general. In addition, many of the companies have a US component. In my experience, and I have lived and worked extensively in Europe, I have run into no one in the US who wants to move to Europe to develop a technology company. On the other hand, I have met, both in Europe and the US, several European tech entrepreneurs that want to move to the US. I have even met family members (in-laws) in Germany who were very tied in with government and industry that wanted to move to the US even though they were high level executives in industry. Part of the issue is raw ambition. Sometimes you hear it called "animal spirits". As an example, when living in Europe working for a large US firm, I was doing a lot of work in Germany. I remember one time at a bar with a number of German colleagues. My ancestry is 100% Greek, so I don't look "American" whatever that means. I also dressed like a European and spoke some German. One time I even flew into Germany from Paris and the border control people started talking to me in German. I guess they thought I was a southern European working there. So, back to the story, after a few drinks some of these colleagues started to complain to me that their boss was "too American", by which they meant ambitious. It was not a compliment. My experience there was very valuable in this context. Europe does indeed have a problem. I would also not get too excited by what China has done. It was done with foreign money and included a lot of IP theft. There is also massive corruption there, and it is a core part of how the government works. In addition, the Chinese economy is going down. If the CCP stuck by the rules that Europe and the US follow they would already be bankrupt. Technically they are.
Europe would be more united today if Brussels didn't insist on acting like an Imperial Capital and foisting incredibly unpopular polices on member states, and the economy would be in better shape if they hadn't opened their borders to millions of unproductive migrants (which the media inaccurately refers to as "refugees" or "asylum seekers") who have become a drain on limited resources, not to mention inflaming tensions with the native-born populations. On every level, Europe's current situation is a self-inflicted wound. Time will tell whether it's a fatal wound.
Rooms full of the brightest bureaucrats telling people you are not productive enough while at the same time hitting them with constant regulation. Europe is dying due to a socialist mindset that has become a pervasive force in my opinion. Anywhere this happens just kills innovation and a will to do better and a more heavy reliance on government. It’s even happened here in NZ.
really bad for information, i.e. talking about the US focussing on solar early, which in germany had been doubling down on in 2000, and then later just dropped the ball due to a more conservative government. the problem wasn't regulations or anything like that but insufficient execution and dedication, bad coordination (hybrid solar, geothermal all lack in execution) if you don't name that, you point at the wrong issues.
Almost no one wants to start new businesses because doing so handicaps you! My dad started a business, and he was treated like a criminal by the tax authorities in France! They don’t believe your numbers and try to punish you every month. Plus, they don’t give you the same protections as if you were working for someone else,...less aid, less unemployment, and less retirement. But at the same time, they want more money from you. So, he gave up and ended up getting minimum wage job and aids!, now he earns more.
@@azulaquaza4916it's still an unsustainable problem. The spending has to slow down or else, and what happens when you shut off all that stimulating government money
If you want to look at value creation on a population adjusted basis you can look at GDP per capita, which tells you how much value is created per person in any given area, so it reflects productivity (ideally)
Regulation is a red herring. No doubt there is over regulation in a lot of places but the real place reason for EU falling behind the US is the politics of austerity that were instituted after the 2008 banking crisis that the US did not do. Also, the lack of effective taxation on the profits of multinational corporations operating in Europe and profiting from European consumers and producers is another huge drain on Europe showing a lack of regulation. Or rather, the problem is not over regulation, but rather the regulations being targeted in a way that benefits USA over Europe.
Europe needs to look around itself, see who's really pulling them down and who else they can depend on in the world stage, and make hard decision to protect their own interests.
U$: How to be a business man Step 1: create a problem (pipeline damage) Step 2: solve it (LNG 4X price) Then customers will treat you as their savior. Step 3: Wait for companies to go bankrupt. Step 4: Use the profit make from LNG to purchase these companies. = zero$purchase.
Poor energy and immigration policies, combined with sluggish innovation and unaffordable superannuation policies have led to such low productivity, high cost structures and unaffordable dependencies - that Europe is ruined.
You know, denial ain't just a river in Egypt. Europe has been cut off from affordable energy resources. THAT is the main reason. You NEED energy to produce things and if you have to buy expensive energy, you can't compete. It is as simple as that.
😂 We've lower corporate taxes than the US. So low that Google and Microsoft financial headquarters are in Luxembourg, X an META financial hubs headquarters are in Ireland an Netflix and Nike are in the Netherlands. And many more. The US companies are shells my friend. The money is in Europe for obvious tax reasons. Even Musk his money. We are a huge tax haven for rich people in Europe. We haven't even talked about the tax haven islands of Europe or places like Monaco or Switserland.
@@Joey-ct8bm Average corporate tax rate, not including those tax havens is ~25% in the EU, while only 20% in USA. VAT is also 20%-25%, which, while passed onto the consumer, does lead to less consumption and lower profits for the business. Also, not every small business can afford to have international holding company in Ireland with a tax subsidy in the Netherlands while having employees in France. 0% doesn't apply to 99% of businesses out there. Same big corporations have complicated setups in the US that allow them to pay close to 0 as well, but economy doesn't run on a few large corporations it runs on small businesses.
@Dragan224M We are talking profit tax they evade. It's after they sold something. That's not like VAT, which is import tax. Corporation income tax is what we are talking about. If you lower corporate income tax then you income tax goes higher or the put VAT on imports to fill the hole. What Trump does is lower corporate income tax and higher VAT. Lower income tax doesn't make your Tesla cheaper, it makes Elon Musk richer. A VAT you pay as a consumer, not Elon Musk. On top of that your own income tax is used to subsidize EV's, so Elon Musk can sell more. Then they use that evasion of tax to do stock buybacks and evade even more tax. After that they buy out the competitor who started as a small business or put them out of business by using the justice system by just killing them by lawyer costs.
We have a lot of problems here in Germany that people will face. Many people are still not aware of this. Ultimately, there has to be something the country can sell in order to then be able to buy things again. The middle class, the automobile and steel industries and the chemical industry were the guarantee for the German economy. All of these guarantors are currently having major problems. The only thing left is agriculture, but that too is being systematically destroyed by ever-increasing regulations. Added to the whole dilemma are increasing expenses due to many pensioners who will soon be retiring. If Germany falls, it will have a dramatic impact on all of Europe. I can only recommend that everyone make personal preparations, network regionally and grow as much as possible themselves. The more people do this the better. Also to be able to help others who cannot. Let's hope for the best.
"If Germany falls" Already a fact. "I can only recommend that everyone make personal preparations, network regionally and grow as much as possible themselves. The more people do this the better. Also to be able to help others who cannot. Let's hope for the best." +1. After seeing USA deliberately destroying the European economy, i can still hope for the best, but i have absolutely no greater expectations.
Not to be that guy but @5:33 it might be unfair to compare the GDP *per year* of countries with the *total market cap* of companies. Instead, perhaps it should be compared with the annual revenue of these companies? Please correct me if I'm wrong in my thinking 😅
You are totally right. But remember this is Bloomberg, and is an American I can guarantee you that these guys are not that Bright…. Government schooling, massive cheating in university, almost no one has really earned their college degree.
My part-time 🚴 tour guide was doing his PhD, in his mid 30s, never had a real full time job and never will take one. Europe has a well educated population that are not contributing to the economy. In the US 14 years old kids already started working in summers for their pockets $$.
GDP is not the best metric. Yes it reflects economy but imperfectly. Not realistic but let assume we snap fingers and all prices, salary… are multiplied by 1.5 in EU, then gdp would be 50% more but won’t change a thing to your life. I live in the US but I’m European and I know for sure that quality of life for median people is better in EU but it seems online that Americans mostly think themselves like if they are members of the 1% club (which in that case make sense, US is very favorable to rich people)
@@alexcastvix8823 GDP doesn’t tell the whole story now and you couldn’t tell much difference now but it will be telling in 10-15 years time. The state supported quality of lives in Europe won’t last very long before something’s got to give. Mario Draghi confirmed as much.
@@SoYappy I agree some changes need to be done in the social policies that might become hard to sustain (I am mostly to retirement policies due to an important decrease of workers/elderly ratio). But for the rest, I think most of the things contributing to EU quality of life are quite sustainable. Healthcare by being mostly public sector have lower cost, public sector prevent greedy corporations to make majors profits in place where « clients » have no choice/ are desperate (only US are scammed at that point by private insurers, labs…). Rents didn’t skyrocket as much as those in the US (even finance bros have roommates in NYC while many people can live by themselves in major EU capitals )…
US borowed 14 trillions in last ten years and got 8 trillion gdp growth out of it. Eu in total borowed 3.2 trillion and manage to get 6 trillion gdp growth.
it's honestly not that bad as this video makes it seem to be. Great education system, great and safe food. Great healthcare system. We innovate where we want and then we take a break from work and enjoy life. For them "the workers missed out on trillions", but we are happy and that's what matters.
@@politicallyincorrect2564 we are all Africa, my brother. If you and I go way back in time, both of us would end up with the same grandmother in Africa 🌍
There are some pretty big underlying issues: 1. Brain drain. While the number of Europeans moving to the US is relatively low, the individuals moving are often the very best and brightest on the planet. This is partly a zero-sum game I think - there can only be one America, only one San Francisco, only one New York. America is the economic and tech superpower and that's not going to change, so we shouldn't try to compete with them, we have to find another niche. 2. Languages. Regardless of the EU, we can never fully get over the fact that most people don't speak a useful foreign language fluently, although in younger generations educated people are increasingly likely to speak English. We need to invest more in that - Europe had a lingua franca once in Latin, now the lingua franca is English and it's time that was widely accepted in France and Spain, as much as it is in the Netherlands and Sweden. 3. Infrastructure. The USA has terrible infrastructure but it can get away with it, because it has very favourable geography - a huge flat area in the eastern half facing Europe, and another coastal area directly facing Asia. It has no major mountain ranges and friendly neighbours. Europe can overcome this barrier to a certain extant, especially in these days of digital infrastructure being equally as important as physical. But more continent-scale investment is needed. Regulations and taxes are obviously part of the problem too, but I think the first thing to do is streamline and simplify them rather than cutting them completely, because we don't want to sacrifice the higher quality of life we enjoy in much of Europe as that then defeats the purpose of having a larger economy.
The problem is our mentality. I moved from a European country X to another European country Y. I wanted to do some innovation, but got bullied and shown my place. Instead, I saw people with dubious qualifications rise up in company hierarchy. A guy who never wrote a line if code, but got to lead a software team. Multiply my case by 10,000, and you get the picture.
We have to make it possible for people to create and to build things that benefit people and that create jobs. Food should be regulated, because it's serious stuff and benefits people. But if let's say a company wants to create something useful, we can't make it impossible to do it. And we have a huge immigration, depopulation and inflation problem. We should immediately remove sanctions from russia, apologize and start buying energy from them (instead of buying it at 2x the price from USA), and at the same time heavily invest in solar energy in EU. Bills have to go down, if we want people to make kids we gotta give people an economy that makes them feel confident in the future. I think today nobody is confident in the future in EU
I think another major problem is how politically divided we are. It takes forever to decide upon anything because all European governments need to agree to it.
A business owner in Europe, especially starting out, is only slightly better off than someone on government assistance. Why would anyone do 60+ hours a week?
I think the problem isn't the lack of investment, that is a symptom of the underlying problem. Technological innovation is a race, winner takes all. European regulators put too many drags on scaling up innovations in Europe so European startups lose the race. We need a change of mindset to allow startups to move quickly and break things.
China speaks in one state overall and in one languages, likewise America. Eu multiple languages, multiple states and multiple red tape. What do you expect even if we have the brightest minds all of our minds just fly away eventually.
That's just not true. Alot of European bright minds flee away for 10-20 years, work in high stress high pay jobs, and return to Europe, with more experience for less salary, because life is in many regards still better. Immigration is heavily challenging that better easier life. Still, many european universties get profs that teach and do research at a high level with plenty of experience for cheap, because they already made their money.
@@MrXelaim So they retire in Europe or maybe do some part-time job to keep themselves occupied after they spent their prime years in the USA? How is that beneficial for the EU?
@Dragan224M Having very experienced people teach your youth is very strong. They also often take all the money and assets gained in the US to consume in the EU. Also, it shows that for all the money in the US, the life in Europe is nicer.
If you want to be an industry leader in cutting-edge tech, you first need to have a stable FOUNDATIONAL industry such as 5G technology and battery industry. How can you expect to be a leader in AI when there are some countries still using fax machines and are so tech averse.
As someone who used to work in finance (Investment Management) I can tell you that growth is being subdued by suffocating levels of taxation and regulation. It's obscene - MiFID alone has over 12,000 regulations in it!
Also Germany can't operate a single functioning courier service that actually delivers packages and has any sense of responsibility. It's mind-blowing.
What amazes me is how little we talk about the fact that Europe is not one country, while we try to compare it to China and the USA. While the EU-s burocracy can be problematic, national level burocracy is the main problem. Differing national regulation and laws makes it much more burdensome both for ventures and start-ups to scale up quick & protectionism makes inefficient businesses die much slower. Hopping from state to state in the USA or province to province in China is much quicker as business owners dont have to understand completly different financial and regulatory markets. No wonder why a sucessfull European start-up decides to relocate to the US. It gets access to a 330 million market with high liquidity and it only has to understand one additional regulatory framework. Unfortunately, the current populist wave will only introduce more fragmentation as populist regimes will always be for themselves and not for the whole EU. The second issue is geography. Both China, the USA has large reserves of natural resources and energy sources which makes them more independent. The US also having the added advantage of a relatively low population density which, makes extraction less noticable for the public. If the EU wants to stay competitive it has to 1) further integrate financial markets (much less national regulation, a bit more EU wide if neccessary), 2) diversify its energy dependence, while focusing on high-tech renewable development, 3) increase its common deffence development focusing on hybrid attacks (such as cyber attacks on infrastructure, social media infulence by other regimes) 4) and it has to attract educated talent from all over the world - as policy seems to be ineffective stopping falling birth rates. Having said that it is also important for the EU to not lose its core values, such as a social security system which provides its citizens a happy and healthy life.
Correct me if i’m wrong, but comparing market capitalization of a company to the GDP (production) of a country is completely irrelevant… Furthermore, if you look at the gdp adjusted to purchasing power, the gap between usa and eu is a lot narrower than 3tr$
When you combined the market cap of the 5 most valuable US companies and then compared this sum with GDP figures, you totally lost me. You compared apples with oranges. That is not to say that Europe is actually in big trouble. That is to say that even Bloomberg offers mediocre, at best, content. If I am allowed to offer a thought to my fellow people that will see this comment: Invest heavily to acquire knowledge and information.
As China has embraced even the smallest bits of capitalism, millions have been lifted out of poverty. Meanwhile, Europe doubles down on socialism and bureaucracy, becoming irrelevant.
Unfortunately in the real world you can either build wealth or you can have it easy. You can have a little of both but maximizing one reduces the other. But many Europeans think they can have 35 hour work weeks, 2 months paid vacation, and lavish welfare states and still build wealth on par with the US. It's just not going to happen no matter how much wishful thinking. Combine these bureaucratic and regulatory hurdles with high energy costs, demographic collapse, and security threats from Russia and elsewhere, and Europe has dark clouds on the horizon. If the US cannot get its own house in order it will be right behind Europe, the US spending and sovereign debt is nearing critical levels.
USA debt is horrible. The deficits are out of control. There is a chance, however slim, that the new administration will do something about this, Trump, Elon and Vivek. People can laugh and scoff, But the sad truth is that no one else would do anything until the whole house of cards collapses. We do have a slim chance here. That’s why I voted for the egomaniac Trump.
Europe also has a lot of non productive bureaucrats soaking up money via taxation that would otherwise be spent on R&D by companies and retail products by inderviduals... in Spain, anything over 60k gets taxed at 45% and anything you choose to buy has a sales tax of 21% got to pay all those bureaucrats somehow 🤷♂️
@ depends, I’m from a Western European country who’s tax money went to the Southern European countries when they were in dire straits and still waiting for the money to be payed back. The price of solidarity I guess. Long story short is that we would be in better shape if we didn’t have to pay for other peoples corruption.
The statistic at 5:38 is super misleading. You're comparing the market cap of the companies to the annual production of the countries. Instead if you compared annual revenue, the value of the companies would be much much smaller. Market cap represents something like the total projected future value of the company over all years, not just 1 year's worth of value.
So much is wrong with the assumptions behind this video. In fact, if you take these ideas to the natural next step, why not just declare all European workers as slaves without any benefits, certainly no summer vacation. Then European productivity will rocket through the roof and everything will be great according to economists.
Economics isn't everything but it is something. Better productivity = higher salaries, more profitable companies, more tax revenue = better public services. That's one of the economic stories of the 20th century.
@@ryanf6530 Actually, what you've written is contradicted by reality. E.g. France has a higher worker productivity than the US and yet salaries are much, much lower. Of course, the French can live a life while Americans must work, work, work... except for the executives that take home millions or billions and never break a sweat. Ireland is a perfect example of how a country can be rich on paper (one of the highest GDP/person in the world) but very few people enjoy that benefit (companies are HQ'd in Dublin but don't pay any corporate taxes).
@@rutessian Ha ha!!! I wonder where you live...🙄 Personally, I'm in the most heavily taxed part of the world (Scandinavia). My marginal income tax is 56% and there is a 25% VAT. However, even I don't pay anywhere near 60% of my income when all is said and done. Plus, I receive so much back in benefits...
I love how the document completly ignores the existance of east Europe countries. Relying on France and Germany only is part of the problem, not a solution.
Europe's carbon tax is a suicidal policy especially when half the world doesn't impose this on their citizens. Also, the VAT tax seems to make innovation difficult since production is taxed at every step. I am an American but I'm curious to see how Europeans view this.
Europeans who are ambitious and actually want to work and do something with their lives agree. However a lot of the leftist youth who has no real plans for life and haven't done anything ever don't see the point and will just call you a fascist
Businesses don't pay VAT. The US has similar taxes on consumers (Sales/trust taxes) These are done on a state level and therefore vary. Taxation in the US vs Europe isn't actually that different when you factor in having to pay for private healthcare etc Its still lower overall though. But thats not the main reason for less growth in Europe.
@@hikey7955 You are not looking around hard enough then. People that are 30 years old have zero in savings and investments are still living with their parents in "first world" countries like Germany, Netherlands and France. >Ohhhh but why should i have anything in savings the government will take care of me when I'm old Sure, buddy, you keep telling yourself that.
One of the things that makes it very difficult is the tax, tax is very prevalent even during growth. Extremely high salary taxes and high cost of services slows companies down.
Lack of venture capital, over regulation/bureaucracy, high tax rates, strength of labor unions, universities not focused on innovation, economies based on manufacturing, and a lack of dynamism. California has a progressive economy but is also home to Silicon Valley. A risk taking 20 year old entrepreneur that wants to grow a new business is going to move to the US.
Overregulation is one problem, but super expensive energy is another. Compared to USA or china, we have 2-3x higher energy costs and many extra fees like for green energy subsidies... And it all adds up. In my country the only Aluminum factory closed because of electricity prices.
I think regulation for big companies is not a bad thing but this regulations for start ups is killing them and making it more difficult for new companies to emerge in Europe.
That and venture capital.
They also don’t apply these regulations to companies that export into the EU, so you’re ham stinging yourselves.
I think the lack of investment is a much worse problem. Europe actually has a significantly more fragmented corporate scene, in fact the same economists talking about 'missing trillions' are usually also calling for allowing more mergers and larger corporations. Most EU directives have exemptions for smaller companies anyways.
I believe that blaiming regulation is a bad excuse. Regulation on digitalization was not even contemplated when Meta, Microsoft and Anazon were created.
@@larslarsen5414 Yeah a lot of people seem to forget that the hyper-growth of Big Tech _predates_ almost all EU tech regulations. Those came later as a response, they can't be the cause unless the EU can time travel.
Also, most EU regulations are just things that either were or would be done by member states themselves. In fact, many member states complain that EU directives are de-facto deregulation, from their perspective.
What baffles me is, we produce the worlds best micro-chip machines and yet use hardly any of them ourselves. We don't invest enough in new industries it's a little sad. I think we are stuck in the mindset of; why make it when you can purchase it abroad.
may not be 100% correct, but you can look at the microchip machine's history. The best micro-chip machine makers were Japanese and at that time ASML was nobody. How ASML catch up? you should ask the American government.
Because we can’t afford the things we produce (allegedly, somehow there are billions spent for other matters, I won’t elaborate). We can’t even afford the top tier trains that Siemens builds for other countries
@@stanleyzhang8154 the Americans or the Dutch?
Making the machine requires a few high tech employees and a little energy.
Running the machines require lots of energy. EU is not energy cheap - US & China are due to their more 'relaxed' environmental laws.
@@stanleyzhang8154That doesn’t really impact this conversation. Yes the US holds the patent for EUV technology, which is integral to ASML’s cutting edge machines… but it’s not like the US is blocking them from selling EUV to Germany or Sweden for instance, the problem is that those countries don’t have companies that would use one in the first place
But.... but... We forced apple to start using usb type C.
But at what cost..
Europe has a bureaucracy problem. Regulations can be fine, don't share private data, dont overly pollute environment. However the bureaucracy of enforcement absolutely strangles any business preventing growth.
It is 95% Ukraine!
All it's part of their arrogance. They think because they are Europe, they didn't need to change anything or innovate
@@HuyNguyen-yh6vcI agree. That's a big countributor of Europe's collapse
@@HuyNguyen-yh6vc of course not.
@@HuyNguyen-yh6vc europes been behind since 2000 if not earlier
Please look at energy prices in the EU compared to China and the US
They are sky high
varies highly. somewhere dirt cheap. somewhere expensive like Germany that destroyed its nuclear power.
Exactly the idiots in the US want us to "be like Europe" paying 2-3x for the same electricity
If the energy price in EU is 4 times higher than Europeans must be 4 times smarter than Chinese/Americans. For example, EU people can invent machines that travel across universe at near lighting speed, or across time. Then even if they decide to work 1-day workweek, their GDP will be still higher than that of China/America.
Somehow Korea and japan with no energy in state. Pay cheaper gas prices than Europe. Hey Europe stop taxing everything to death.
The war with Ukraine did not help either@@Redmanticore
The EU is killing everything with overregulation. I own two small businesses, and it’s not easy. Taxation is high, and everything is slow and painful. Bigger companies still have some power to compete, but smaller ones are deeply struggling. The saddest part of all this isn’t just the taxes, bureaucracy, or lack of digitalization-it’s the people who willingly accept this nonsense every day. No one sees the problem. It’s mind-blowing.
Now you can understand the reason and smart decision it was for the British to leave the EU. The EU is run by a bunch of bureaucrats who get richer by the hour for complicit regulations that they create. Just look at all the times they have sued American companies over BS issues for billions of Euros.
it is called socialism put in place by naive bleeding heart attitude politicians
Most Euros would rather criticize the US 4,000 miles away than talk about their own problems.
@@WillieFungoFunny thing is Americans dont think about Europe at all lol
We are working on that.
But we do have amazing startups, unfortunately they leave for the USA because of Europe's malignant bureaucracy.
For some reason we also refuse to incorporate English as a mandatory second language for business
Not many people know this: English is easy to learn because it is easy, or because it is simplified? Due to it used everywhere in the world as non-native language, the grammar and tolelerance must be great to accommodate different people with different background. So English must be simplified UNINTENTIONALLY overtime. When you as a writer want to approach the WORLD audience, you'd be better to write simplified English.
This is not true with German. Just 83 million Germans. Even in Austria and Swizerland, people talk a different language (not German). As an isolated place (just Germany), the German native speakers have no incentive to simplify it (it's just their OWN bubble, their own "thing").
Im not interested in 'keeping pace' with the US.
I dont care if someone is richer than me.
Im fine.
@@oceanwave4502 Idk bro, im Austrian, im pretty sure i speak Hochdeutsch. And honestly idk whats ur yapping with simplified english, what are you on about?
@@oceanwave4502I would argue French or Italian are far far easier to learn and speak than English. And more beautiful as well, not to mention that they are both European
@@oceanwave4502 There's a reason why English still remains the most important international language. If U.S. economy looked like Germany or France people would rather learn French and German than English
Try to do something with IT in Europe, 20+ languages and rules that favor locals. Of course they cant scale quickly
Right, blame the languages, EU is doing everything right
Unlike the USA or China we aren’t a economically homogeneous country, france will not give advantage to a German company and vice versa, we dislike monopolies in Europe so our tech companies are “specialized” in a sector instead, multiple language, lots of small countries that makes expanding difficult or limited to neighboring countries with similar cultures, local regulations,tax laws ect.
L
Europe figures out rules and regulations then make it, in America they make it then figure out the rules and many years later regulate
@@holdmybeer123language is definitely an issue. EU needs a common language
@@uhohhotdog Agreed. In fact I'll go a few steps further, Europe needs a common army, government, shared border, common debt and of course a common language. That is the only way forward. What do you think?
I have a solution! Lets make a department of growth, allocate billions of tax dollars to it and hire thousands of bureaucrats!
Add one more department, the one of supervision of growth.🤗
😂 this is way too real.
This new department needs oversight and regulation. Lets hire some more pencil pushers.
Europe faces a systemic issue as it lacks tech companies driving innovation, with leaders in technology, space, and electric vehicles mainly coming from the U.S., China, or Asia. This dependence weakens the continent, hampers growth, and exacerbates debt problems it cannot effectively tackle.
and relaxed working culture....
This happens then you let the whole world being Controlled by the united states of Israel who just want to create one world order and one currency the dollar just boycott the dollar and don’t buy american products!
Sweden is a leading innovator, we need to follow the Swedish model, we don't need to be like the US or China, we can follow our own path, but that means less regulation and less/smarter taxation.
War
It lacks the companies because it lacks the funding. EU startups move to the US.
Wages are completely obliterated by inflation and the work force is shrinking due to aging population. The result shouldnt be surprising
that`s not the only problem BUT the companies could not grow could not reinvent themselves EU is not working as a whole Brussels does not have any power to change countries trajectories fundamentally europeans choosed NOT to be a country which => in fractures and companies can`t expand cant grow and progress eventually leads to lack of innovation and finally bankruptcy EU no longer has even 5 companies in top 100
The work force is shrinking thanks to socialism. Why working if you get the same for not working?
The work force is shrinking cause the youth just want to be influencers and not put in the extra effort. They always have their hands out. The younger generation are lazy 😊
@@intuitivediane Thats the classic boomer narrative and plain false - at least in germany. If we look at the actual number, you can see that the german folks in employable age are currently working more working hours per week as anytime before in the last 50 years
@@intuitivedianenah, the ppl who become influencers are the type that wasn’t going to work anyway, they are just born rich and they can afford to play games all day
Shouldn't be comparing company valuation with country's GDP. GDP is wealth that's generated every year, whereas valuation falls when stock prices fall.
GDP can also fall when stock prices fall. See China’s collapsing real estate market for evidence, which at one point made up a quarter of the country’s GDP before it imploded.
Right, those 5 companies have under 2 trillion in revenue, their market cap is 8 trillion.
@@Alusky yes so pretty overpriced or people really think they will make such GDP in the future.
They are strongly correlated, especially in smaller countries with a few large companies, like Denmark and Novo Nordisk or Lego.
I agree it would be better to compare it to revenue
You forgot about another important factor: ENERGY PRICES.
Energy is becoming more costly and it's not affordable to produce things in many parts of Europe anymore, while at the same time energy prices keep rising even more, partially because of not being a "green energy".
It’s not just that - the euros are just too comfortable. The lack the drive and the hustle to do better. I was at meetings for Corus (steel) when it was in trouble and what struck me was that the company back then was going to go under, but the guys there instead of staying after 4, were more concerned about making it home on time than their employer going bust!!!
Europe will be getting cheap energy from America and Argentina starting in late 2025.
NATO WANTED WAR WITH RUSSIA WELL YOU GOT WHAT YOU WANTED TO FUND UKRAINE EVERY MONTH AND RISING OIL PRICE AND INFLATION.
What happened to NordStream Pipelines?
Europe can no longer prop up their economy with stolen goods and resources from Africa.
VW fired the guy who wanted to invest on it's evolution.
what's the name?
@@Mario-fn7po Herbert Diess. That decision will doom VW and Germany.
Oh its not missing, it just landed in the hands of the corrupt earners.
The euro cannot be maintained without a robust European industry, and that’s the core issue.
The biggest lie the US is constantly telling the world that world can‘t live with US while the whole world can live better and rise without US because who has built up US through hard work up the germans who are now living in US, they need to distance themselves from US because US will be nobody without them!
Whole world needs to boycott dollar!
@@sophieblau845 🇺🇸 🦅 deal with it!
@@sophieblau845 U.S. dollar isn't your problem, the Euro is stronger. The issue is Europeans are more concerned about leaser, early retirement and social welfare programs.
The Euro shouldn't be maintained over it's natural value that's damaging to the economy
5:33 why’s bloomberg of all publications conflating market capitalisations with GDP? for all their impressive market cap figures, their profits would be a better proxy for GDP (assuming all of profits emanate from value addition which’s pushing the envelope) and assuming an average PE of 25, the 8 trillion figure shrinks to 320 billion. Or on the other hand, if you’re to compare market caps, 61 trillion for the US equities compared to 56 trillion for the euronext
According to Eurostat, the EU publicly traded companies total market cap is 9 trillion. The US is 50 trillion. With much less population.
@@danielrojas399 Would be better to compare turnovers and profits. And in Europe larger proportion of services is produced/controlled by the government which explains some of this - and efficiently too. This is also comparing publicly traded companies and lacking other companies. Wouldn't pay much attention to this figure let alone any other single indicator.
@@McSlobo The facts speak for themselves. The economy in Europe has been stagnant the last ten years, basically we lost a decade. There hasn’t been any growth, any increase in wages and instead only losses to purchasing power. On the other hand, the Americans have multiplied their purchasing power and the American economy has tripled. I had to move from Spain to Switzerland because the EU economy is terrible. Switzerland is like an economic island in the heart of Europe where people can actually afford stuff. In Switzerland there’s people from all over the EU working here for the same reason. Economy.
@@danielrojas399 What about non-public companies? They should be added into the mix. But I am not sure what that will tell us. More like where it has been than where it is going.
GDP of the usa is largely more government borrowing. China's figures are unreliable.
I am a tech worker from Europe, worked in many places around the world. In my experience, Europe has the best engineering teams (yes, including the US) and no shortage of startups and ideas. But none of that seems to go anywhere. Part of it is lack of VC funding. But I think it's also a self-reinforcing culture. Startups fizzle out, so the best employees avoid them. Therefore startups fizzle out.
Best engineering teams 😂 look at the research papers coming out of US universities and compare them to European universities in tech.
@@JT_ytspawn Found the American.
@@JT_ytspawn Maybe NASA could send some science and research crafts into space. Just to catch up with the ESA, hm? Instead of blowing money left and right.
We love your JWST but keep in mind it will be surpassed with the two coming to service huge telescopes made by ESO.
@@HanSolo__ **Scope and Size**: NASA has a larger budget and scope compared to ESA, allowing for a broader range of missions and extensive human spaceflight capabilities.
- **Focus Areas**: NASA emphasizes deep space exploration, planetary science, and human spaceflight, while ESA has a strong focus on satellite technology, Earth observation, and international collaboration.
@@JT_ytspawn "NASA has a larger budget and scope compared to ESA"
And? What does that matter when the only thing they're experts at, is to waste money?
The only reason USA has a functional spaceflight capability today is by relying on private corporations, which in turn only exists and works today as they do, thanks to buying up a lot of old Soviet spacetech in the 90s and 00s.
"Best engineering teams"
Better than USA on average, easily yes.
"look at the research papers coming out of US universities and compare them to European universities in tech."
Uh-huh, and WHO writes those papers? Generally not the natives of USA. 1/4 are Europeans, another 1/4 are Chinese.
Cultural difference. Europe has long benefited from it's early industrialization, when you look around nobody is working or wanting to start businesses. Compare that to America or China.
USA industrialization was barely behind Britain.
When the workforce in high tech is payed the same as bus driver you get the EU economy.
europe´s unionized bus drivers keep winning
@@piromanaBG hm. Which of the two jobs benefit the common citizen more I wonder.
Sounds like Cuba 😂😂😂
@@broti705 Benefits are not considered when considering pay. Its economic value added that is considered when considering the fact about pay.
@@PentangleYT Would be nice if that was so, but usually it has more to do with the power relationship between employer and employed. If we were going off of value added, turning a bus that stands around into a bus that transports people where they want to (and need to) be certainly adds a lot of value to the overall value and functioning of a society.
Try to fabricate a car, an elevator or even a pressure vessel in the EU, and you'll have to hire Norm experts, pay certifications and inspections for every little process, while facing high salaries for many arrogant and lazy people, high taxes, and high energy costs. That is Europe's metalurgic industry at the moment.
There are no lazy workers. Only bad managers.
Not true, there are indeed lazy workers. Just go to any government office and you'll see.
@@IvanPetrov-k2k i think there are both actulaly
you have to meet the same regulations if you import valves from China. It's not about requirements, but about the prices of materials, energy and margins for intermediaries.
Not lazy worker but smart & high education people who dont like do physical work only do mind work.
Easy peasy. The formula for data centers is cheap energy, available land, access to rivers and infrastructure. European IT-developers are not worse than american ones, european scientists are not worse than american and chinese ones. On top of that all we got from the EU is more regulation, paper straws and no market integration, which was the main reason for the EUs existence. Big corporations on the european continent are old archaic constructs married to politicians that ensure no new players will ever enter an existing market. Old families hold old money and rather invest it in champaign bottles than into the future of europe. The EU burocratic machine pumps out regulation after regulation where only the big corporations can keep up, and new startups and challangers will simply go under a tsunami of sensless and worthless burocracy. This year alone over 60'000 !!!! new regulations were made 3x more than the US for something that isn't even a single market. In the EU we only have poeple sitting there that know how to regulate so they keep on regulation day and night to justify their existence in this cancerous system.
I agree to a 100%. Thank you. That was refreshing to read.
So what you suggest to dissolve the EU and live like the Brexiteers? because the UK hasn't done well ever since they got out of the EU
@@HaxorMy We need to reform the EU
@@victor95pc Into what?
@HaxorMy that is totally wrong . Your " misinformation " is total , and according to the Masters of the EU and its deluded ,extremist lieing supporters , that is a criminal offence these days . Funny isn't it , how the EU is a dictatorship, and it's supporters just love enforcing dictatorship and jailing people Hmmmm
"EU Economy is in tatters. In Tatters I tell you. IN TATTERS!" --- Ursula
What? Could you repeat that?
The EU is behind to some degree, but it's kinda funny that every year for the past 15 years there's been an article about how Europe is about to collapse and promptly every year nothing happens. Also, it's very strange to bunch together the USA and China because if the metric is nominal bigness of econometrics, the real GDP of Europe is still leagues ahead of China, which is still very poor (by those metrics).
@@Blaze6108 Actually, no. In nominal, they're roughly equal but, by PPP, China is higher. Obviously, it has 4x the population. But you're not wrong; that exact thought is applied to China as well.
I see what you did there😂😂😂
Find a doctor.
the established power holders in Europe, the property owners, do not want to give up their power to a new generation of growth.
So much regulations, it's becoming crazy. Everything requires permits
Europe is overloaded with expensive governments. They should be reduced by 80% to Asian government sizes. Governments themselves in Europe are the problem.
does its competitors like china have less regulations?
If EU could not turn it around during their best time (2000-2019), what makes them think they can just do it right now amid the PERFECT storm?
@patrickgz It's true that china has less regulation then 🇪🇺 or 🇺🇸 . But it's nothing envy. I recommend you google China's Milk Scandal. Or listen to what joe rogan have to say about regulation
@@patrickgz YES.
Comparing market capitalization of companies with the GDP of a country doesn't really make sense...
Especially when the magnificent 7 is about 1/3 of the US market cap. 😅
@@cinpeace353 And look at their PE ratio. Are trough the roof, so the market cap well lets say the prices for these stocks are way too high. Could collapse poof gone market cap.
Bureaucracy and regulation.... Europe and the UK never learn
comparing the market cap of apple and google with the gdp of a nation is mindblowing
It is. They only thing people don't know that their financial hubs are in Europe to evade tax. Google financial hub headquarters is in Luxembourg and Apple financial headquarters is in Ireland. All their money is there. The US has the shell company of Google and Apple.
A more fair comparison would have been the revenue.
@@samuel.andermattCompletely agree.. But revenue of Google is quite crazy, like Spain’s GDP is more or less 1.5T$ and Google’s yearly revenue is more or less 300B$, so with 5 Google’s you got the whole of Spain’s production.
1 in 5 people in Europe is 65 or older today in just 10 years it will be 1 in 4. You can't grow an economy with that many unproductive retirees.
We shoud import unproductive immigrants
Surely that will solve the issue
research "average age/demographic of new car buyer"
Right, when economists talk about the “demographic collapse” they mean that of young, skilled, and mobile workers. The senior surge only makes it worse because their dominance in politics just prioritizes funding retiree benefits often at the cost of support for the youth and young families.
@@doujinflip Total population will still decrease but the percentage of the remaining population will still be getting older.
That's the other big problem.
Why western countries need migrants to grow.
Places like Japan and South Korea may need to follow suit if they want to survive.
Energy prices have gone through the roof.
When u know u already lost EV industry, don’t focus on competition or tariffs, instead, seek cooperation for survival. To go against the flow is expensive n suicidal.
none of the decision makers are smart enough to see other alternative solution, unfortunately.
Hybrid is the way, not EV at the moment.
@ yes
The problem is that EU countries are still functioning on self interest instead of full cooperation.
EVs are niche product.
economy does not equal living standards. It's very silly, the us economy is growing but are living standards increasing? NOPE.
it would have taken you less than 5 minutes to research the actual numbers and answer your own question.
@@bobtuiliga8691i mean he's right. US is a nice country for 10 or some more % of it's population, maybe even 30 or 40. But for lower class it's way worse than Germany or Nordic countries for instance.
Europes debt burden and aging crisis will make things even worse in the future.
I was the business development manager for a successful US company. We were looking at expanding into Europe. We could not make it work because Europe was inferior in every aspect, meaning everything cost more, was less efficient, and could not support the pricing required to succeed. We made a no-go decision
Not surprised.
@@victors4333 me neither ! Workers are respected and protected in Europe. You can't compete vs a country where human life is disposable and paper money is the king.
@@CarpeDiem13x And that is the sad part. We're protecting these things in Europe, so when we're lacking behind, it's because the US and China are more "lenient" and thus business friendly, leading to a business and brain drain
@@Sco10 China and US are like drug dealers making easy money and Europe is a decent worker. We need to find the way to adapt Europe to compete vs world sweat shops without destroying what is most important, humans.
"Workers are respected and protected in Europe" Obviously not by their governments, otherwise they wouldn't be taxing them at 50% for what is considered a lower middle class income (50k - 60k) in the US.
Comparing market cap with gdp is nonsensical
Yeah just compare revenue. At least revenue is a component of GDP.. Market Cap is whimsy
GDP is useless, what matters is National income
GDP has been created to fool the people
As a small business owner in Germany, I really have felt the bureaucracy everywhere. High taxes, overcomplicated tax systems, endless regulations that keep added so you are not on track anymore, highest energy prices in the world. They make it a nightmare here. No wonder why China and USA are so competitive and thriving.
Everyone wants a "digital era economy". Everyone wants to emulate the US. The thing is that the US economy has never been centrally planned or controlled. That is why innovation is strongest in the US. The nuances of that are a long and complex story. Just think about how many "Silicon ..." efforts there have been in Europe in the last couple of decades. The flaw is that these are government programs. That is not how it works in the US. That is not to say there are no innovative companies in Europe, but their scale is nowhere near that of the US in general. In addition, many of the companies have a US component.
In my experience, and I have lived and worked extensively in Europe, I have run into no one in the US who wants to move to Europe to develop a technology company. On the other hand, I have met, both in Europe and the US, several European tech entrepreneurs that want to move to the US. I have even met family members (in-laws) in Germany who were very tied in with government and industry that wanted to move to the US even though they were high level executives in industry.
Part of the issue is raw ambition. Sometimes you hear it called "animal spirits". As an example, when living in Europe working for a large US firm, I was doing a lot of work in Germany. I remember one time at a bar with a number of German colleagues. My ancestry is 100% Greek, so I don't look "American" whatever that means. I also dressed like a European and spoke some German. One time I even flew into Germany from Paris and the border control people started talking to me in German. I guess they thought I was a southern European working there. So, back to the story, after a few drinks some of these colleagues started to complain to me that their boss was "too American", by which they meant ambitious. It was not a compliment.
My experience there was very valuable in this context. Europe does indeed have a problem.
I would also not get too excited by what China has done. It was done with foreign money and included a lot of IP theft. There is also massive corruption there, and it is a core part of how the government works. In addition, the Chinese economy is going down. If the CCP stuck by the rules that Europe and the US follow they would already be bankrupt. Technically they are.
Europe would be more united today if Brussels didn't insist on acting like an Imperial Capital and foisting incredibly unpopular polices on member states, and the economy would be in better shape if they hadn't opened their borders to millions of unproductive migrants (which the media inaccurately refers to as "refugees" or "asylum seekers") who have become a drain on limited resources, not to mention inflaming tensions with the native-born populations. On every level, Europe's current situation is a self-inflicted wound. Time will tell whether it's a fatal wound.
Rooms full of the brightest bureaucrats telling people you are not productive enough while at the same time hitting them with constant regulation.
Europe is dying due to a socialist mindset that has become a pervasive force in my opinion.
Anywhere this happens just kills innovation and a will to do better and a more heavy reliance on government. It’s even happened here in NZ.
really bad for information, i.e. talking about the US focussing on solar early, which in germany had been doubling down on in 2000, and then later just dropped the ball due to a more conservative government.
the problem wasn't regulations or anything like that but insufficient execution and dedication, bad coordination (hybrid solar, geothermal all lack in execution)
if you don't name that, you point at the wrong issues.
Oh dear gas prices rise 300% let's pretend it hasn't....
Because the US blew up Nordstream and put as to war with Russia.
Now proof your point because gas prices has been dropping since 2022. Why do you use populism to make your point and not factual numbers?
gas price nowadays is less than pre war. Be serious.
Almost no one wants to start new businesses because doing so handicaps you! My dad started a business, and he was treated like a criminal by the tax authorities in France! They don’t believe your numbers and try to punish you every month. Plus, they don’t give you the same protections as if you were working for someone else,...less aid, less unemployment, and less retirement. But at the same time, they want more money from you. So, he gave up and ended up getting minimum wage job and aids!, now he earns more.
what would the comparison look like if we took out the us governments 35 trillion deficit spending?
36 trillion debt now everyone is afraid to say it
You don’t understand US debt clearly. 70% of it is owed to Americans the other 30 foreigners but it’s mostly Japan, China and UK
@azulaquaza4916 ok but why they pay more than 1 trillion a year on interest???
@@azulaquaza4916it's still an unsustainable problem. The spending has to slow down or else, and what happens when you shut off all that stimulating government money
@@quietus13In Europe debt is rampant just the same, and I would say in some EU countries it’s worse, because of the huge implicit debt of pensions.
compare life expectancy. they chose life over money
Lol you talk of the old one, prior to new generation. But I think they choose LIFE + MONEY.(as both goes together!)
Ah yes, 81 years vs 79 years. lol great choice, now enjoy your lower quality of life because your bureaucracy doesn’t want you to thrive too much.
And health, / lifestyle
I doubt that being poorer makes you live longer. If anything it's just a difference in car culture vs walking everywhere.
Money isn’t all that matters, and that’s what differentiates EU
it makes no sense to compare country gdp to valuation… pet peeve but there are other ways to illustrate the point
If you want to look at value creation on a population adjusted basis you can look at GDP per capita, which tells you how much value is created per person in any given area, so it reflects productivity (ideally)
Yeah that kinda throws this whole video into doubt, as sensationalist nonsense
And if comparing they should’ve subtracted the Tech companies from the overall US economy.
@@jonathanandrew2909why they are 70 percent of the reason usa has lapped europe
Regulation is a red herring. No doubt there is over regulation in a lot of places but the real place reason for EU falling behind the US is the politics of austerity that were instituted after the 2008 banking crisis that the US did not do. Also, the lack of effective taxation on the profits of multinational corporations operating in Europe and profiting from European consumers and producers is another huge drain on Europe showing a lack of regulation. Or rather, the problem is not over regulation, but rather the regulations being targeted in a way that benefits USA over Europe.
Europe needs to look around itself, see who's really pulling them down and who else they can depend on in the world stage, and make hard decision to protect their own interests.
But we have so many doctors and engineer's 😂😂😂😂😂😂
U$: How to be a business man
Step 1: create a problem (pipeline damage)
Step 2: solve it (LNG 4X price)
Then customers will treat you as their savior.
Step 3: Wait for companies to go bankrupt.
Step 4: Use the profit make from LNG to purchase these companies. = zero$purchase.
Last big company from Germany was founded over 50 years ago, let that sink in.
Poor energy and immigration policies, combined with sluggish innovation and unaffordable superannuation policies have led to such low productivity, high cost structures and unaffordable dependencies - that Europe is ruined.
You have 50k on your account, you can't even rent a flat. That's obvious.
You know, denial ain't just a river in Egypt. Europe has been cut off from affordable energy resources. THAT is the main reason. You NEED energy to produce things and if you have to buy expensive energy, you can't compete. It is as simple as that.
100%, it starts with the cost of energy.
If you’re discussing olive oil production in Europe and focus on Italy (
Jaén ❤
That's because Spain produces colored water, not oil.
Excess taxes have damaged generations and it's only getting worse.
😂 We've lower corporate taxes than the US. So low that Google and Microsoft financial headquarters are in Luxembourg, X an META financial hubs headquarters are in Ireland an Netflix and Nike are in the Netherlands. And many more. The US companies are shells my friend. The money is in Europe for obvious tax reasons. Even Musk his money.
We are a huge tax haven for rich people in Europe. We haven't even talked about the tax haven islands of Europe or places like Monaco or Switserland.
@@Joey-ct8bm Average corporate tax rate, not including those tax havens is ~25% in the EU, while only 20% in USA. VAT is also 20%-25%, which, while passed onto the consumer, does lead to less consumption and lower profits for the business. Also, not every small business can afford to have international holding company in Ireland with a tax subsidy in the Netherlands while having employees in France. 0% doesn't apply to 99% of businesses out there. Same big corporations have complicated setups in the US that allow them to pay close to 0 as well, but economy doesn't run on a few large corporations it runs on small businesses.
@Dragan224M We are talking profit tax they evade. It's after they sold something. That's not like VAT, which is import tax.
Corporation income tax is what we are talking about. If you lower corporate income tax then you income tax goes higher or the put VAT on imports to fill the hole.
What Trump does is lower corporate income tax and higher VAT. Lower income tax doesn't make your Tesla cheaper, it makes Elon Musk richer. A VAT you pay as a consumer, not Elon Musk. On top of that your own income tax is used to subsidize EV's, so Elon Musk can sell more.
Then they use that evasion of tax to do stock buybacks and evade even more tax.
After that they buy out the competitor who started as a small business or put them out of business by using the justice system by just killing them by lawyer costs.
We have a lot of problems here in Germany that people will face. Many people are still not aware of this. Ultimately, there has to be something the country can sell in order to then be able to buy things again. The middle class, the automobile and steel industries and the chemical industry were the guarantee for the German economy. All of these guarantors are currently having major problems. The only thing left is agriculture, but that too is being systematically destroyed by ever-increasing regulations. Added to the whole dilemma are increasing expenses due to many pensioners who will soon be retiring. If Germany falls, it will have a dramatic impact on all of Europe. I can only recommend that everyone make personal preparations, network regionally and grow as much as possible themselves. The more people do this the better. Also to be able to help others who cannot. Let's hope for the best.
@Selbstversorger-Kanal re open nuclear
@Selbstversorger-Kanal also gut brod video
"hope for the best" that's the most European thing I've ever heard.
"If Germany falls"
Already a fact.
"I can only recommend that everyone make personal preparations, network regionally and grow as much as possible themselves. The more people do this the better. Also to be able to help others who cannot. Let's hope for the best."
+1.
After seeing USA deliberately destroying the European economy, i can still hope for the best, but i have absolutely no greater expectations.
@DIREWOLFx75 are you saying EU is helpless in protecting it's economy or just surrendered ?
Not to be that guy but @5:33 it might be unfair to compare the GDP *per year* of countries with the *total market cap* of companies. Instead, perhaps it should be compared with the annual revenue of these companies?
Please correct me if I'm wrong in my thinking 😅
You are totally right. But remember this is Bloomberg, and is an American I can guarantee you that these guys are not that Bright…. Government schooling, massive cheating in university, almost no one has really earned their college degree.
My part-time 🚴 tour guide was doing his PhD, in his mid 30s, never had a real full time job and never will take one. Europe has a well educated population that are not contributing to the economy. In the US 14 years old kids already started working in summers for their pockets $$.
What a BS. All over Europe kids of 14 are doing exactly the same.
@ if you do the same things but different outcomes then something is broken somewhere.
GDP is not the best metric. Yes it reflects economy but imperfectly. Not realistic but let assume we snap fingers and all prices, salary… are multiplied by 1.5 in EU, then gdp would be 50% more but won’t change a thing to your life. I live in the US but I’m European and I know for sure that quality of life for median people is better in EU but it seems online that Americans mostly think themselves like if they are members of the 1% club (which in that case make sense, US is very favorable to rich people)
@@alexcastvix8823 GDP doesn’t tell the whole story now and you couldn’t tell much difference now but it will be telling in 10-15 years time. The state supported quality of lives in Europe won’t last very long before something’s got to give. Mario Draghi confirmed as much.
@@SoYappy I agree some changes need to be done in the social policies that might become hard to sustain (I am mostly to retirement policies due to an important decrease of workers/elderly ratio). But for the rest, I think most of the things contributing to EU quality of life are quite sustainable. Healthcare by being mostly public sector have lower cost, public sector prevent greedy corporations to make majors profits in place where « clients » have no choice/ are desperate (only US are scammed at that point by private insurers, labs…). Rents didn’t skyrocket as much as those in the US (even finance bros have roommates in NYC while many people can live by themselves in major EU capitals )…
US borowed 14 trillions in last ten years and got 8 trillion gdp growth out of it. Eu in total borowed 3.2 trillion and manage to get 6 trillion gdp growth.
As an American who loves Europe, I’m rooting for you guys 💙
it's honestly not that bad as this video makes it seem to be.
Great education system, great and safe food. Great healthcare system.
We innovate where we want and then we take a break from work and enjoy life.
For them "the workers missed out on trillions", but we are happy and that's what matters.
Well, you are mostly Europeans anyways 😂
@@politicallyincorrect2564 I’m an African American
@6inthepocket is the same African but not an American. None of you is American. You just migrated there.
@@politicallyincorrect2564 we are all Africa, my brother.
If you and I go way back in time, both of us would end up with the same grandmother in Africa 🌍
There are some pretty big underlying issues:
1. Brain drain. While the number of Europeans moving to the US is relatively low, the individuals moving are often the very best and brightest on the planet. This is partly a zero-sum game I think - there can only be one America, only one San Francisco, only one New York. America is the economic and tech superpower and that's not going to change, so we shouldn't try to compete with them, we have to find another niche.
2. Languages. Regardless of the EU, we can never fully get over the fact that most people don't speak a useful foreign language fluently, although in younger generations educated people are increasingly likely to speak English. We need to invest more in that - Europe had a lingua franca once in Latin, now the lingua franca is English and it's time that was widely accepted in France and Spain, as much as it is in the Netherlands and Sweden.
3. Infrastructure. The USA has terrible infrastructure but it can get away with it, because it has very favourable geography - a huge flat area in the eastern half facing Europe, and another coastal area directly facing Asia. It has no major mountain ranges and friendly neighbours. Europe can overcome this barrier to a certain extant, especially in these days of digital infrastructure being equally as important as physical. But more continent-scale investment is needed.
Regulations and taxes are obviously part of the problem too, but I think the first thing to do is streamline and simplify them rather than cutting them completely, because we don't want to sacrifice the higher quality of life we enjoy in much of Europe as that then defeats the purpose of having a larger economy.
The problem is our mentality. I moved from a European country X to another European country Y. I wanted to do some innovation, but got bullied and shown my place. Instead, I saw people with dubious qualifications rise up in company hierarchy. A guy who never wrote a line if code, but got to lead a software team. Multiply my case by 10,000, and you get the picture.
We have to make it possible for people to create and to build things that benefit people and that create jobs. Food should be regulated, because it's serious stuff and benefits people. But if let's say a company wants to create something useful, we can't make it impossible to do it. And we have a huge immigration, depopulation and inflation problem. We should immediately remove sanctions from russia, apologize and start buying energy from them (instead of buying it at 2x the price from USA), and at the same time heavily invest in solar energy in EU. Bills have to go down, if we want people to make kids we gotta give people an economy that makes them feel confident in the future. I think today nobody is confident in the future in EU
Us infrastructure is only bad when compared to Europe compared to anywhere else it's above avg
I think another major problem is how politically divided we are. It takes forever to decide upon anything because all European governments need to agree to it.
The Rocky Mountains aren’t major?
A business owner in Europe, especially starting out, is only slightly better off than someone on government assistance. Why would anyone do 60+ hours a week?
I think the problem isn't the lack of investment, that is a symptom of the underlying problem. Technological innovation is a race, winner takes all. European regulators put too many drags on scaling up innovations in Europe so European startups lose the race. We need a change of mindset to allow startups to move quickly and break things.
Don't forget Russia supplies 25% of coal, 25% of oil, 40% of natural gas and 40% of uranium fuel to the EU.And you guys ban it
Disband Brussels apparatus for beginning. Including useless eu parlament. States by self did much better
China speaks in one state overall and in one languages, likewise America. Eu multiple languages, multiple states and multiple red tape. What do you expect even if we have the brightest minds all of our minds just fly away eventually.
That's just not true. Alot of European bright minds flee away for 10-20 years, work in high stress high pay jobs, and return to Europe, with more experience for less salary, because life is in many regards still better.
Immigration is heavily challenging that better easier life. Still, many european universties get profs that teach and do research at a high level with plenty of experience for cheap, because they already made their money.
Justin: diversity is our strength
That's not true, USA doesn't have an official language, and in fact 22% of US citizens don't speak English at home.
@@MrXelaim So they retire in Europe or maybe do some part-time job to keep themselves occupied after they spent their prime years in the USA? How is that beneficial for the EU?
@Dragan224M Having very experienced people teach your youth is very strong. They also often take all the money and assets gained in the US to consume in the EU.
Also, it shows that for all the money in the US, the life in Europe is nicer.
Market cap is not same as GDP, Net Profit or at least, Yearly Revenue of the companies can be a better indicator for comparasion
Europe seems happier and healthier than US isnt that more desirable?
There are startups, but there is a weak financing private system, unlike Silicon Valley that has its own investment system
EU needs people! And technology not Luis Vuitton or Parmesan cheese!
😂😂
Importing 10 million unskilled men from MENA won't turn the nursing home continent into Sillicon Valley, agent
Never understood why nations literally have to purchase their security from third party for-profit entities.
If you want to be an industry leader in cutting-edge tech, you first need to have a stable FOUNDATIONAL industry such as 5G technology and battery industry. How can you expect to be a leader in AI when there are some countries still using fax machines and are so tech averse.
Europeans live in the past
5:30 That is the market cap not the GDP per year. The GDP would be something like 800billion dolars
Less, closer to €350×10⁹.
As someone who used to work in finance (Investment Management) I can tell you that growth is being subdued by suffocating levels of taxation and regulation. It's obscene - MiFID alone has over 12,000 regulations in it!
germany cant even build an airport
Why ?
Also Germany can't operate a single functioning courier service that actually delivers packages and has any sense of responsibility. It's mind-blowing.
@@leakyabstraction but why ? These are not tough asks, but rather simple tasks
Belgium spend 500 million on a small trainstation in Bergen.
@@ducx23 i mean its not small but its definitively not worth the money
Europe is a great place for old people.
The US is a great place for nobody. Elon Musk, Bill Gates and Jeff Bezos have all their money stashed in European tax havens. So yes, for old people.
The whole continent is a continental sized museum
But but but… we want our 30 hour work weeks, 3 months vacation, and 5 years maternity leave.
What amazes me is how little we talk about the fact that Europe is not one country, while we try to compare it to China and the USA. While the EU-s burocracy can be problematic, national level burocracy is the main problem. Differing national regulation and laws makes it much more burdensome both for ventures and start-ups to scale up quick & protectionism makes inefficient businesses die much slower. Hopping from state to state in the USA or province to province in China is much quicker as business owners dont have to understand completly different financial and regulatory markets. No wonder why a sucessfull European start-up decides to relocate to the US. It gets access to a 330 million market with high liquidity and it only has to understand one additional regulatory framework. Unfortunately, the current populist wave will only introduce more fragmentation as populist regimes will always be for themselves and not for the whole EU.
The second issue is geography. Both China, the USA has large reserves of natural resources and energy sources which makes them more independent. The US also having the added advantage of a relatively low population density which, makes extraction less noticable for the public.
If the EU wants to stay competitive it has to 1) further integrate financial markets (much less national regulation, a bit more EU wide if neccessary), 2) diversify its energy dependence, while focusing on high-tech renewable development, 3) increase its common deffence development focusing on hybrid attacks (such as cyber attacks on infrastructure, social media infulence by other regimes) 4) and it has to attract educated talent from all over the world - as policy seems to be ineffective stopping falling birth rates. Having said that it is also important for the EU to not lose its core values, such as a social security system which provides its citizens a happy and healthy life.
Each U.S. state has its own regulations as well. There's a reason companies are leaving California and Chicago to move to Texas and Florida.
The consequence of expensive energy is poverty!
which is a consequence of having no army
Correct me if i’m wrong, but comparing market capitalization of a company to the GDP (production) of a country is completely irrelevant…
Furthermore, if you look at the gdp adjusted to purchasing power, the gap between usa and eu is a lot narrower than 3tr$
When you combined the market cap of the 5 most valuable US companies and then compared this sum with GDP figures, you totally lost me. You compared apples with oranges. That is not to say that Europe is actually in big trouble. That is to say that even Bloomberg offers mediocre, at best, content. If I am allowed to offer a thought to my fellow people that will see this comment: Invest heavily to acquire knowledge and information.
Why? Because the USA blew up Nordstream 1 and 2.
As China has embraced even the smallest bits of capitalism, millions have been lifted out of poverty. Meanwhile, Europe doubles down on socialism and bureaucracy, becoming irrelevant.
I am a trying to be an entrepreneur in europe. I literally had to stop my business because new regulations made it unfeasible to keep doing it.
Unfortunately in the real world you can either build wealth or you can have it easy. You can have a little of both but maximizing one reduces the other.
But many Europeans think they can have 35 hour work weeks, 2 months paid vacation, and lavish welfare states and still build wealth on par with the US. It's just not going to happen no matter how much wishful thinking.
Combine these bureaucratic and regulatory hurdles with high energy costs, demographic collapse, and security threats from Russia and elsewhere, and Europe has dark clouds on the horizon.
If the US cannot get its own house in order it will be right behind Europe, the US spending and sovereign debt is nearing critical levels.
USA debt is horrible. The deficits are out of control. There is a chance, however slim, that the new administration will do something about this, Trump, Elon and Vivek. People can laugh and scoff, But the sad truth is that no one else would do anything until the whole house of cards collapses. We do have a slim chance here. That’s why I voted for the egomaniac Trump.
@steveperreira5850 I agree 💯
Europe also has a lot of non productive bureaucrats soaking up money via taxation that would otherwise be spent on R&D by companies and retail products by inderviduals... in Spain, anything over 60k gets taxed at 45% and anything you choose to buy has a sales tax of 21% got to pay all those bureaucrats somehow 🤷♂️
Europe is not a country! There’s no United States of Europe. We’re a bunch of countries with some similarities and more differences.
That doesn't really change the real fiscal challenges presented here, does it?
@ depends, I’m from a Western European country who’s tax money went to the Southern European countries when they were in dire straits and still waiting for the money to be payed back. The price of solidarity I guess. Long story short is that we would be in better shape if we didn’t have to pay for other peoples corruption.
@@yellowboeing6030 Thats not much though. That's not the main problem.
I loves how this guy says China problem, when Chinese EV came from a nobody to today number 2, and all German car manufacturers are number????
The statistic at 5:38 is super misleading. You're comparing the market cap of the companies to the annual production of the countries. Instead if you compared annual revenue, the value of the companies would be much much smaller. Market cap represents something like the total projected future value of the company over all years, not just 1 year's worth of value.
EU (and Britain) Needs to stop paying for a illegal immigrant to come over
The US has far more illegal migrants than the EU… but they are doing much better
So much is wrong with the assumptions behind this video. In fact, if you take these ideas to the natural next step, why not just declare all European workers as slaves without any benefits, certainly no summer vacation. Then European productivity will rocket through the roof and everything will be great according to economists.
Economics isn't everything but it is something. Better productivity = higher salaries, more profitable companies, more tax revenue = better public services. That's one of the economic stories of the 20th century.
@@ryanf6530 Actually, what you've written is contradicted by reality. E.g. France has a higher worker productivity than the US and yet salaries are much, much lower. Of course, the French can live a life while Americans must work, work, work... except for the executives that take home millions or billions and never break a sweat.
Ireland is a perfect example of how a country can be rich on paper (one of the highest GDP/person in the world) but very few people enjoy that benefit (companies are HQ'd in Dublin but don't pay any corporate taxes).
Considering the state takes about 60% of my income, saying that working people are slaves to the state is not that big of an exaggeration.
@@rutessian Ha ha!!! I wonder where you live...🙄 Personally, I'm in the most heavily taxed part of the world (Scandinavia). My marginal income tax is 56% and there is a 25% VAT. However, even I don't pay anywhere near 60% of my income when all is said and done. Plus, I receive so much back in benefits...
One thing is to increase production, however if there are no buyers to your products, you have just increased the cost of your production.
The European Union is in terminal decline. Stagnating economy, poor demographics and over regulation of its businesses.
Cash is king! In the Netherlands they are pushing HARD to get rid of cash.
Payments in cash above 3000 euros are now illegal.
You don't need cash in a tax paradise for corporations.
And why exactly are cash transactions better for an economy than bank transactions?
Nope they aren´t illegal. Banks are abligated to inform the gouverment of these payments
I love how the document completly ignores the existance of east Europe countries. Relying on France and Germany only is part of the problem, not a solution.
East Europe countries are the only ones deregulating and growing.
Europe's carbon tax is a suicidal policy especially when half the world doesn't impose this on their citizens. Also, the VAT tax seems to make innovation difficult since production is taxed at every step. I am an American but I'm curious to see how Europeans view this.
Europeans who are ambitious and actually want to work and do something with their lives agree. However a lot of the leftist youth who has no real plans for life and haven't done anything ever don't see the point and will just call you a fascist
I agree with the sentiment, but thats not how VAT works. It's only paid by the end consumer. Businesses deduct what they pay from what they collect.
China also have very high VAT tax,just not told out to you.
Businesses don't pay VAT. The US has similar taxes on consumers (Sales/trust taxes) These are done on a state level and therefore vary. Taxation in the US vs Europe isn't actually that different when you factor in having to pay for private healthcare etc Its still lower overall though. But thats not the main reason for less growth in Europe.
No cheap Russian gas for a year and everything collapses
And EU still tries to convince themselves that those 'renewables' can work.
No cheap russian gas in EU means high prices for russian fertilisers, metals etc. 😂
I think I missed the part where the EU collapsed?
Renewables a long term investment and will eventually help the EU. Gas and oil is not infinite
You realize they replaced the Russian Gas with American gas right? Renewables aren't the problem.....
@@hikey7955 You are not looking around hard enough then. People that are 30 years old have zero in savings and investments are still living with their parents in "first world" countries like Germany, Netherlands and France.
>Ohhhh but why should i have anything in savings the government will take care of me when I'm old
Sure, buddy, you keep telling yourself that.
One of the things that makes it very difficult is the tax, tax is very prevalent even during growth. Extremely high salary taxes and high cost of services slows companies down.
Lack of venture capital, over regulation/bureaucracy, high tax rates, strength of labor unions, universities not focused on innovation, economies based on manufacturing, and a lack of dynamism. California has a progressive economy but is also home to Silicon Valley. A risk taking 20 year old entrepreneur that wants to grow a new business is going to move to the US.
Overregulation is one problem, but super expensive energy is another. Compared to USA or china, we have 2-3x higher energy costs and many extra fees like for green energy subsidies... And it all adds up. In my country the only Aluminum factory closed because of electricity prices.
I hear this since 40 years. Wir schaffen das!