Never thought I would see the day...but it has arrived. This study actually, finally, compares the standard of living and quality of life between the Socialist and Quasi-Socialist countries of Europe with the United States. Much credit goes to the New York Times for actually printing this story.
You might remember that once upon a time we posted a piece which compared at the economies of Europe to the economy of the United States. The tools used for this comparison were unemployment rates, productivity and other economic indicators. The figures indicated that European countries needed 25 - 70 years to catch the U.S. in certain economic categories based upon their current rate of growth. The time frames also assumed the U.S. remained stagnant in those categories.
Some of the feedback I received was quite negative, including snarky e-mails from liberals who disputed the contents and conclusions. That did not surprise me given that the study was the missle of reality exploding upon their fond socialist day-dreams. This study contains even more bad news for the liberal world view. I just love this summary line burried in the story:
Contrasting "the American dream" with "the European daydream," Mr. Norberg described the difference: "Economic growth in the last 25 years has been 3 percent per annum in the U.S., compared to 2.2 percent in the E.U. That means that the American economy has almost doubled, whereas the E.U. economy has grown by slightly more than half. The purchasing power in the U.S. is $36,100 per capita, and in the E.U. $26,000 - and the gap is constantly widening." (emphasis added)
When the European countries are compared to individual States in the U.S., an even clearer picture emerges. Those of us who live in the wealthy midwest states have exchanged e-mails and other web posts with some critics from European countries. It might interest these folks that the study backs up much of what we have been trying to explain to them. If the E.U. was a 'State' in the U.S., they would rank near the bottom in terms of output.
"Alternatively, the study found, if the E.U. was treated as a single American state, it would rank fifth from the bottom, topping only Arkansas, Montana, West Virginia and Mississippi."
I can hear the arguments about quality of life, etc... but if life's quality can be measured by disposable income, or private consumption the European's are being sold a bill of goods about their 'quality of life'. The international accounting firm KPMG completed a study which ranked the European countries and not surprising the more socialistic countries ranked the lowest in terms of adjusted income. Topping the list of European countries was Spain and Portugal, though Spain is likely to drop now that they have a new Socialist government. This is probably good news to the other Europeon countries who compare woefully to the economies of these two countries. It is always easier to drag everybody else down than it is to build yourself up.
The private consumption figures for a Danish study were even more one sided:
"While the private-consumption figure for the United States was $32,900 per person, the countries of Western Europe (again excepting Luxembourg, at $29,450) ranged between $13,850 and $23,500, with Norway at $18,350."
Now either the European public is not being told about the contents of these studies or there is some kind of bad news management going on with the media, but the general consensus of Europeans is not in line with the data. Recently a bleak picture has been painted of the U.S. which provides two classes of wage earner but has a great average. This is a fraud.
This media manipulation of the truth does not square of course with any of the publicly available census data. When median income figures are taken, even some of the poorest counties in the U.S. compare favorably to any of the European economies as a whole. Median income in poor Appalachian counties would actually help up the averages of most of the European countries.
It has been trendy for some of the blue state liberals to look down their noses at the life styles of residents of the red states. The disposable income figures do not support this view, but nevermind, that is the least of these folks problems with data. When the cries for European style health care, welfare and worker's benefits are made by these blue staters, a little research on their part would provide them with the truth. What they yearn for is an economic system which provides for a lifestyle like that enjoyed by the current residents of Mississippi, one of the poorest U.S. states. Next time you hear this blue stater liberal rant, just suggest they move to Mississippi and leave the rest of us alone.
There is a bleak future in these European socialist economies. The minority population will one day explode in rage if some serious changes are not made. Hopelessness and oppression will tend to do that.
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