Prosperity drops to Oklahoma levels

The German economy is lagging behind the United States. The numbers show where there is room for improvement, and where the United States can still learn from Germany.

WASHINGTON — The United States is economically dependent on Germany. In terms of GDP, wages, and economic performance, Americans have long been ahead of the Germans. But it’s not just economic metrics that matter. While Germany has still caught up in innovation and efficiency, Americans lag behind in satisfaction and a good quality of life. A comparison of the two countries reveals stark differences.

Economy Comparison: US Companies Lagging Far Behind DAX

Microsoft, Apple, Nvidia, Google and Amazon – the world’s five largest companies – are all American. At $3.39 trillion, software company Microsoft alone is worth twice as much as all 40 DAX companies combined. Foreign investment in Germany has also fallen, while foreign investment in the US has continued to rise.

The GDP per capita in the United States is around $69,231, while in Germany it is only $50,795. This is what the Federal Statistical Office figures show as of 2021.

Analysis of Frankfurter Allgemeine Zeitung (FAZ) He continues to show that US GDP fell sharply after the financial crisis (by nine percent), but has fully recovered compared to its pre-Covid trend. The German economy has yet to recover from the coronavirus pandemic and is about six percent lower than it was before the pandemic.

Working hours and productivity are higher in the United States than in Germany.

In addition, the analysis shows that had wonAmerican employees can afford about a third more than German employees. In 2022, the average American earned about $77,000, while Germans earned only about $59,000. The fact that the average cost of living in the United States is higher than in Germany is also taken into account.

The number of hours worked per employee in Germany has also fallen since 1990, while it has fallen slightly in the United States. According to OECD figures, Germans will work about 1,341 hours per employee in 2022. In 1990, it was still 1,600 hours. The United States will have 1,811 hours in 2022, compared with 1,878 hours in 1990.

This is cited as a reason for the rise in wages in the United States. Handelsplatz High demand for skilled workers. The report continues that high demand could slow the United States in the long run. However, there is also a shortage of skilled workers in Germany and Europe. According to the report, this is exacerbated by the uncertain economic outlook.

Now, it is not only the hours worked that are crucial, but also the productivity of the two countries. However, productivity in Germany has also declined. According to the Long-Term Productivity Database, productivity per hour in Germany is about 117 index points. In 1997, productivity in both the United States and Germany was 100 index points. In the United States, productivity is now 129.

How does Europe compare economically to the United States?

Europe as a whole is also economically backward compared to the United States. “If European countries were satellite states of the United States, many would be among the poorest countries,” says a report by the European Centre for International Political Economy (ECIPE).

The report goes on to show that the US economy is about 31 percent larger than the European economy. In 2008, it was only about 15 percent. In 2021, Germany’s GDP per capita has fallen to the level of prosperity of the 38th US state, Oklahoma.

“If this trend continues, the wealth gap between the average European and the average American in 2035 will be as wide as it is between the average European and the average Indian today,” the European Centre for International Entrepreneurship warns in its report.

The US economy is stronger – Germany can still score some points

Economically, the United States may be doing better than Germany, but it’s not always the economic indicators that matter. In the OECD’s “Better Life Index,” the United States received an overall rating of 7 out of 10 points, while Germany received a score of 7.3.

Also according to the analysis US News Germany is better off than the United States in terms of quality of life and social aspects. Germany ranks 9th in the world in the quality of life ranking, while the United States is only 23rd. In areas such as gender equality, religious freedom and anti-discrimination, which are summed up under the social purpose aspect, Germany ranks 13th, while the United States is 19th. Perhaps the United States could also learn something from Germany.