/biz/ - Business & Finance

[Anonymous No.55824678]

In 1980 Europe's economy was about 40% of the world's economy and now it's about 15%.
One might argue that this was due to the rise of asia but that is simply not true since the US economy remained a stable 25% of the world's economy from 1980 to right now.

Why did this happen, financially speaking?

[Anonymous No.55824721]

>>55824678
america brain drained all the smart people and jews

[Anonymous No.55824778]

>>55824678
US growth since the 1970s is really a lot of accounting shenanigans and not real productivity. All of the significant real growth since 1980 has been in developing countries.

[Anonymous No.55824826]

greens and leftists were succesful. the 200 biggest companies in europe were founded prior to 1980

[Anonymous No.55824837]

>>55824678
Europe became non-competitive in global markets and deindustrialized much more strongly than the US did. Unlike the US, it took full advantage of globalization by dismantling all of its factories (e.g. textiles, heavy industry). The only country with a large industrial base was Germany, and even it only had that heavy industry for exports. (Western) Europe also has extremely generous social programs and pension schemes, and it also did not have a large Millennial generation, thus is suffered to a great degree from labor shortages and a lack of consumption in recent years.
In the end, globalization turned out to have been a trap, in effect, if maybe not intent, by the US: it created a fantastically vulnerable, globally stretched-out supply-chain that's now breaking down. Europe's BEST future, if it has any at all, is to become a poor vassal of the US, with the median living standard being around that of maybe present-day Kazakhstan (though richer pockets may continue to exist).

[Anonymous No.55824875]

>>55824678
Eastern Europe's economy collapsed for about a decade in the 90s after mostly stagnating through the 80s, which balanced out Western Europe's growth and kept things overall stagnant on the continent for about 20 years while other regions grew. In the 2000s Europe's economy was exploding and briefly Western Europe overtook the US in GDP per capita at the end of the decade, but the financial crisis in 2008 hit the continent really hard. Now Eastern Europe is where most of the continent's growth is happening but it's from a low base, while Western Europe has been struggling to grow and is often in brief recessionary periods. So the continent overall hasn't been able to grow despite some regions growing relatively rapidly.

Meanwhile since 1980 the US has had pretty steady 2% - 4% growth per year with even the 2008 Financial Crisis wasn't able to cause the US economy to stall out. It's a combination of factors like the US having some of the biggest companies in the world, being pretty much the unparalleled pioneer of the digital age, and having relatively favorable demographics in regards to working age population. Additionally both the more and less developed parts of the US have seen consistent economic growth, rather than regional variations like in Europe, so there's no effect of say the South holding things back while the North grows, or vice versa. It's more like individual regions growing faster than others in spurts due to shifting economic priorities, but even the slower-growing regions still growing. That's how the US overtook the entire economy of Europe even including Russia and Turkey in the definition just a few years ago.

[Anonymous No.55824927]

>>55824678
American economy has been entirely carried by finance and software since the late 90s. The automotive and heavy industry is effectively defunct (Rust Belt) and nothing is manufactured here anymore.
All of this is reflected in the fact the American middle class has been severely eroded since then while a new class of billionaire has exploded.

[Anonymous No.55824964]

>>55824678
its their communistic mindset and the overall stranglehold the government has on the people with taxes and entitlement programs. and its coming here now

[Anonymous No.55824993]

>>55824837
Delusional, Europe outcompetes the US in every single manufacturing sector: planes, vehicles, heavy machineries, medical tools, chip making, chemicals, ships, etc…

The US completely gave up on all these at the profit of Asia and its entire economy basically relies on services, cheap natural resources and the dollar. The only exception being Musk who somewhat resurrected a brain dead aerospace and automotive industry.

[Anonymous No.55824997]

>>55824927
The US is actually still the #2 manufacturing country in the world, it's just that the vast majority of that manufacturing is high-tech goods that you don't normally see in daily personal use, and often exported to other countries. Like the US makes a fuckload of plane engines for international markets, you're not exactly going to be seeing that when you use the bathroom though. As an overall percentage of GDP it's been in decline for years though, that's pretty undeniable and like you said is probably a major factor in why the American middle class has become so hollowed-out.

Really curious to see what all the manufacturing construction going on right now will do in the long-term. The US is going through a massive boom in manufacturing construction at the moment, the largest in history and over triple the rate it was just a couple of years ago, but most of those factories won't be completed until 1 - 3 years out and a lot more are planned in the next 5 - 7 years. We won't even begin to see the effects of this until next year and won't really see the full swing of it until near the end of the decade.

[Anonymous No.55825011]

Welfare state, aka socialism.

[Anonymous No.55825014]

Because central banks.

[Anonymous No.55825034]

At least we have free healthcare and walkable cities

[Anonymous No.55825076]

>>55824997
Airbus literally has a 65% market share vs Boeing (35%).
Manufacturing is in the shitter right now due to Germany retarded energy choices but it was comfortably in front of the US during the 10s.

[Anonymous No.55825093]

Locals don't want to work, aging population, refugees sucking government money, covid money printing frenzy thus very high inflation, extremely lagging IT sector, very high taxes and stagnating salaries, leftist propaganda "muhh money isn't everything" which overall results in lowering consumption while smart and ambitious people are fleeing for US/UK. In the meantime "chill-lifestyle" folks keep making non-competitive IT products which affects more and more economy sectors every year.

[Anonymous No.55825105]

>>55825076
Yeah fair, I just find it kind of amusing that in spite of the US gutting their manufacturing more or less that there's a scenario that allows them to still be #2 right now. Like I said I think they're about to pull even further away though, it seems like the US is investing extremely heavily in its manufacturing sector again while Europe is doing relatively little in comparison.

[Anonymous No.55825128]

>55825093
Most folks can't save money, can't invest, can't buy a house or even a car. Outsiders aren't eager to invest because of the above reasons.

To be honest i'm not sure how they manage to get away with this so far but i have strong feeling that shit will hit the fan in the next 5-10 years.
>t. Russian living in Germany

[Anonymous No.55825408]

>>55824993
You might be right, though it's just my impression that, except for some relatively niche sectors, most manufacturing has shifted away from from Europe, e.g. steel and textiles. The claim that Europe outcomes the US in heavy machinery is a bit dubious, but I don't have the data in front of me.

[Anonymous No.55825428]

>>55824678
Europe refused to grow so they could pay for migrants healthcare.

[Sean No.55825441]

>>55824678
All you had to do was unbridled capitalism. It was so easy. Now it’s too late and you have to wait for Asians to get cocky too. It’s their game to lose now.

[Anonymous No.55825465]

>>55824927
It makes sense to have more growth in new sectors rather than old. Also there was nothing stopping europe from getting into software in fact it has a lot less barriers to entry and higher profit potential than manufacturing.

[Anonymous No.55827039]

>>55824678
Europe is a shithole that despises innovation and is still living 500 years in the past thinking that tradition will get them through.
Why do think the Asians have come up so quickly? They took the American way and adapted to their cultures and economies and as a result have had a boom.
Even the camel fucking shitskins of the Middle East figured out they had to step into the modern world to survive and as a result the entire MENA region is growing and moving forward. Why? By adopting western ways and innovation that’s it.
Europe on the other hand is literally rebelling against the future by trying to hold onto the old ways. And what’s worse they are proud of it like it’s a badge of honor.
They are fucking done for, short Europoors and get rich.

[Anonymous No.55827094]

>>55824993
Umm what fucking world are you living in anon.
I am an American living in Europe and I can tell you they do NOT outcompete us for shit.
Zero innovation and Europeans other than the Germans are some of the stupidest people on the fucking planet. The EU is basically a welfare state where the top countries pay to keep the eastern block afloat, they use the Eastern Europeans as their labor and they are losing as a result.
Believe me on this, Mexican laborers are harder workers, smarter and more dedicated than any Romania, Hungary, Polish or any of those shitty countries labor any day.
Even Switzerland (where I live) is a facade, it’s the German, American, and French who have immigrated here that make the country run.
Europe is a joke, and is very much on the decline, with no hope as they are unwilling to change.

[Anonymous No.55827135]

>>55824678
Socialism and leftist politics

[Anonymous No.55827157]

>>55824678
>Why did this happen, financially speaking

because of foreign invaders and globohomo

[Anonymous No.55827158]

>>55824678
Hello Whatifalthist

[Anonymous No.55827170]

>>55824678
its funny when you guys diss europe, america has esentially all the same problems as europe but they have super inflated stem salaries(mostly tech and medicine) and a cheaper cost of living(because of all the corner cutting and goy slop) you guys overlook it. All these Republicans treating Dallas and Houston like some untouched bastion in the United States when its basically a cosmopolitan Tijuana is hilarious

[Anonymous No.55827183]

Europe doesn't have a gorillion dollars flowing through healthcare, pharmaceutical, and insurance usury scams or spend one hundred billion dollars a day to blow up bombs in the middle of the desert for fun

not defending europe, just different problems

[Anonymous No.55827210]

>>55824678
Brown people. Also fuck off Janny.

[Anonymous No.55827230]

>>55824993
Every random ho-hum suburb in America is filled with these massive inconspicuous industrial parks that produce every widget and gadget known to man. True we’ve outsourced most heavy manufacturing, and the toxic fumes and materials that go with it, to the third world but the scale of light manufacturing in America is beyond anywhere else in the world. Most people don’t even realize the amount of shit being produced within a couple miles of their house.