Europe is often put face-to-face with the USA. As Americans are in favor of free economy with laws promoting entrepreneurship, Europe still lives decades past. Below few reasons why I think that Europe will fall behind the USA in future:
1) Work culture: Americans work a lot which obviously brings wealth. It is estimated that an average European works only 70% of the time of an average American. And few Europeans would work without 4 week summer and one week winter holidays. In Scandinavia it’s impossible to get anything done in July, and the whole Southern Europe is having a vacation in August. Americans usually take only two to three weeks off a year, and some manage the year without holidays that of course is not advisable. People need to get holidays but thinking from the entrepreneur’s side what is the point of paying people for drinking beer at their cottage for 4 weeks?
2) Social welfare system: It is common saying in Finland that it is a jackpot to be born in Finland. I have to add that it is also a jackpot to be unemployed in Scandinavia, at least comparing to many other areas. Government will take care of you until one dies even one wouldn’t have any medical reasons for unemployment. In order to provide all this the taxation is high and for instance a person earning €100,000 a year in Finland will have around €58,000 to spend after taxation. In the USA with the same income one would have around €72,000 for spending. My point is not to put down tax system as I’m getting value for my money in hospitals, in well-maintained roads etc. Good question though is whether it motivates to work? And even a better question: How an earth aging European countries can sustain current welfare systems when the supported age groups are growing, and the age group of people who pay all this is decreasing…?
3) Immigration policies: The USA has welcomed immigrations from all over the world for over a century, and is currently taking around 1 million legal immigrants annually. These immigrants learn fast that in order to survive one must work hard to realize an “American dream”. The USA is the place where the worlds most talented come and enjoy the same opportunities as Americans itself. European countries are patriotic and the settlement of immigrants has gone truly wrong which has provided the uprising of xenophobic political parties. People are frightened to lose their jobs to immigrants. Wrong. Legal immigrants should be seen as opportunities instead of threads, and honestly saying the immigrants are the future of Europe. Currently Europe is not providing a lot of opportunities for the worlds talented that needs to be changed through law enforcement and especially inside people’s minds.
4) Entrepreneurship: European history has always urged on unity and solidarity. Labor unions have a lot of power, and there has been a contrast between the labour and leaders. Maybe the best example of this is France where people go on strike with slight reasons, and take factory directors as hostages after lay-offs. Europe is bureaucratic and establishing a company is made difficult and expensive. In my opinion government’s job is not to provide full employment for everyone. Instead its job is to provide an opportunity for entrepreneurs and new companies to grow profitably that ultimately creates new jobs. The USA is the land of entrepreneurs and if one endeavor fails, another is already in entrepreneurs mind.
5) History: Europe is often referring to its historical heritage in the areas of culture, arts, renaissance, sports, wars etc. In order for Europe not to be mainly a tourist destination in future, we have to start living the moment. This means more cooperation between the countries and upright decisions to motivate people to innovate and work hard. It also means accepting immigrants to help the work needs of aging population.
Being a European I truly wish that my prognoses are wrong but for that we need to walk the talk and take action.
-Mikael
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Alas, I think you are correct in many of the points. I definitely think that Europe should take a new attitude and think why we have gone this far. I feel those reasons are fading. I also as a citizen of Finland would like to see Europe continue its rise even further.
ReplyDeleteOne thing I do disagree. That is the point 3. immigration. Now this would be a long chat but tight controlled immigration is wise on my mind. If you look at Switzerland and Norway, they do have a tight immigration. Here in Canada they take a lot of people in, but e.g. many doctors from India have to make their living by driving a cab. This is not sustainable. Also countries like Spain and Ireland have been taking a lot of immigrants in recent years to balance the coming pensions of the Baby Boomers. In Spain this has lead to financial problems with their Caja (small/deposit bank) system. I feel controlled tight immigration without racism is the right way to operate. Too fast, too soon is not the right way to increase multicultural demographics.