Why is that a problem? Yes, it means less "amazing individuals who own N% of the economy", but it also means that none of my neighbors are starving or can't afford healthcare, definitively a tradeoff I (and most people I'm proud to call friends) are willing to make, even if it makes our own lives a small percentage less comfortable.
I'd say that why I personally prefer the (European) country over other places I've lived in the world, or could live. I don't want to live in a place where people don't help lifting all the boats, but instead are just interested in lifting their own boat, or want to lift a small amount of boats.
And that's amazing, and as an European I would never want to get rid of that. It's a cornerstone of our societies, a core belief if you want to call it that.
But I do think that there is a pervasive feeling of people being "ostracized" for wanting to do better than their neighbours. Like when someone says they are going to run a company the reaction is usually "why, isn't a normal job good enough for you?". Obviously this isn't universal, EU is far too big and diverse for this to be true everywhere. But I've met with this kind of attitude a lot personally, where people have directly asked me if I think I'm better than them by trying to do something good for myself and grow. So now I just don't tell people, or just say I work in software or something, there's no point. It's not even that tide lifts all boats, it's that "we're all in the same boat"(and don't you dare leave it) is a thing that exists.
But to be fair, I haven't really experienced that so much in other larger countries like Spain, France or Italy, at least not to that extent. Still I'd say it's different than the typical American Individual Exceptionalism, but probably a good difference, we don't to make the same mistake.
Probably a balance between the two is the right approach, you don't want to completely lack either sides, but also not be too dogmatic about it. But it's also hard for politicians to get votes on "You know, both sides have good points, lets figure out a balance", strong emotions sell votes and so on...
Even those who might accept this is no longer true intellectually find it hard to internalise.
The current complacency, one which we are currently still in the process of unwinding from (it will take years) is that of trade turning violent enemies into mutually beneficial growth opportunities. Russia was the first wake-up call there (but even then for the current situation not for Crimea), and over the last year also the USA. China is, I think, currently mostly seen as opportunity rather than threat.
War is expensive, and not doing it is good when possible. It is bad for everyone that we now feel the need to put 5% or whatever of our GDP into defence when it could have been spent on infrastructure, education, healthcare, or even startup grants.
Spending on defence is expensive, but its a lot cheaper than an actual war - "if you want peace, prepare for war"
Thats the only thing that works for the likes of russia (or anybody really) who is by far the biggest threat to Europe and would love to see it subjugated.
That was also the only reason Switzerland wasnt taken over by nazi Germany like Austria was, they mustered up to 800k voluntees/draftees in a country of 5 million, fortified and made it clear that Germany would bleed hard to gain that territory (they would invade anyway after defeating russia that was clear also from hitler&himmler's writings, top german brass hated Switzerland, what it represented and considered it a mortal enemy to 3rd reich but I am going off topic here).
5% is nothing if there is enough motivation. Overbuilt bureaucracy for nothing juse employing tons of rather useless paper pushers, ineffective social systems that are abused hard by those really not deserving it, bad budget management by politicians, corruption in megaprojects and ao on. Its really nothing.
The problems are security, sovereignty and economic stagnation. Being dependent on super powers and vulnerable to their whims is not good. Weak supply chains are not good. Neither are worsening standards of living.
You are proving the point. The avg. person gets an enormous benefit from it, even in countries like USA, Japan or Korea with far less generous welfare. The gap in standards of living of somebody in the US and somebody in Georgia or Vietnam are ridiculous.
How is this an argument? A poor person in the US has a massively better standard of living than a poor person in Vietnam.
Poverty is relative. If you have a small apartment in a city of McMansions, you're poor, but if you have a goat in a village of no goats, you're rich.
That worked before globalization. Nowadays, having a small apartment in a city of McMansions means you're upper middle class. Poor people in the west have no apartments and no goats.
What is equivalent adjusted income level? PPP between Russia and USA is around 1.8. Median annual salary in the US is $57 ($1196 per week), median salary in Russia is $13200. Even if you adjust it, it's roughly two times smaller.
As someone who lived in a bunch of countries, some rich and some poor, no, living standards among the avg. Joes of the world are not even remotely the same.
I choose to live in a richer country where I am relatively a lot poorer, but overall the advantages of a rich country outweigh the disadvantages.
Using money as a proxy doesn’t work perfectly because things can be more expensive, and trying to normalize with things like “living sq ft” doesn’t calculate externalities.
The best I’ve found is to track relative migration pressure - where do people want to go?
*compared using nominal exchange
>The best I’ve found is to track relative migration pressure - where do people want to go?
I like this approach. It's much more holistic and captures stuff that really cannot be quantified with prices and numbers, like freedoms and rights.
No, you need more than one goat if you want to be rich, regardless of what other people have. Really, you need a few dozen.
One goat can't do anything but age and die.
Poverty levels are measured relative to median. Poverty in US and poverty in Bangladesh, Russia or Vietnam are completely different things.
In the US poverty line is about $16k, while in Russia for example it is $2300. Even considering the PPP it's like 4 times the difference in living standards. I guess Vietnam or Bangladesh are far worse.
Upd: downvotes with no counterargument. Orange site is becomming more and more a reddit.
In Europe, innovation in the end help everyone. Better healthcare starts with the rich, and ends distributed to everyone. The same is true for everything else.
I wouldn't say it's a matter of complacency, but rather a convergence of problems. To solve those problems, there need to be radical changes, but radical changes are not popular. Politicians win elections by promising stability, not by disrupting lives. The politicians that rise to the top are the ones that don't have any visions for a better future nor the desire to make a difference, because the system does not reward that.
These boats may contain Tesla, Ramanujam, Röntgen and other talent people with poor circumstances.
Good social security is also investment in potential talent that could contribute to economy.
I disagree entirely. It's because most EU workers(at least in the richer most developed countries) don't get a proportional slice of the fruits of their labor, but only breadcrumbs after taxes. Working harder as an EU employee just means your boss/company gets to be richer and your government gets more of your taxes, while you get nothing more in return, just taking home a few extra bucks at the end of the month, making the juice not worth the squeeze, causing everyone to optimize for doing the bare minimum because why bother.
Especially when the big city CoL rises higher than your salary anyway, what's the point of working harder? You'll be more tired now and still won't be able to buy a nice house, ending up on the same standard of living and housing affordability as someone who optimized his life around extracting the most amount of welfare and benefits from the government while dodging work. So then why wouldn't you do the same?
Same story around entrepreneurship and VC funding or lack thereof. The taxes, risk and responsibilities of being a business owner with employees on your payroll are far higher that in other places on the planet like the US, making it a better deal to just not bother with all that and choose the cushy life of an employee in a old dinosaur company in an ageing and declining industry, rather than the stress of being the employer/innovator.
Geopolitical competition will not fix this because the monetary incentive structure around hard work still remains messed up. You can fix this by changing the tax laws to reward those working harder instead of punishing them with higher taxes and no gains to pay for the lifestyles of those who contribute the least in society.
Simply look at what Poland or Czechia did to become economic powerhouses in a short amount of time, and just do stuff like that. And you'll find out they didn't start off by giving their workers Scandinavian style of income taxes, welfare and benefits, that I can tell you, but more like cutthroat capitalism and the harder you work the more you can earn tax structures.
Our success story is the same as recent India one - we're just much smaller. We have educated population that was underemployed and poor, and western companies jumped at opportunity of replacing entry and mid level positions with cheaper workers, across both factory and office work.
At least that's the reason I've been given every time I've tried to take a contractor permanent!
Calling India a success story feels like a bit of a stretch compared to the better known Chinese case, or indeed Eastern Europe itself. They still have huge scope for further improvement.
If anything, big city CoL is the flip side of higher productivity inside the big city. If you're going to have an "idle" lifestyle, you'll be vastly better off moving to a small rural town where prices are a lot lower by default - same if you work fully remote. (Connectivity used to be a key barrier for the latter case, but fast mobile and sat-based connections have changed this quite dramatically.)
Productivity is only one of the smaller reasons. The other bigger ones are landlord rent seeking, nimbyism, mass migration, interest rates and real estate speculation, all of which aren't connected to your income progress. That's how productivity and employment in a city can stagnate or even decline while real estate prices can keep climbing.
You don't, (Western) Europe is just a rentier-place at this point, living on other people's backs. For example look at Maersk, from the much-beloved and relaxed Denmark, their business would crumble over night if it weren't for the Americans keeping the seas open for them.
USA is the only country that ever triggered article 5 of NATO and got military help out of it. And now acts like victims when others don't rush to help them with absurd badly planned war where they are clear aggressors.
The second real use of NATO was to send armies to greenland to discourage USA to attack it just 2 months ago. So, now is really not the time for America to pretend ever do something that is not primary for itself.
That was token help (the Brits excluded), let's be serious here, we're all grown-up men.
Lets be serious here.