This paper deals with the gap between the economic developments of the United States with respect to the main Western European Countries in the last two centuries. In the mid-nineteenth century, Europe and the U.S. had similar GDP and productivity levels.
However, over a period of time the balance of power has gradually turned in favor of the Americans. In 1950, the indicators cited above, were only half those of the United States. The efforts of the European powers to close the gap were partially successful. They achieved the targets on productivity, but were unable to match GDP and the per capita income. The average standard of living of Europeans is only ¾ that of the Americans. The level of GDP per head is important because it reflects the standard of living of the population, and the general well-being.
[...] A synopsis of two centuries of economic growth Statistical Data The growth accounts, compiled by A. Maddison provide a record of the economic performance of U.S. and Europe since 1820 using indicators such as GDP, per capita income and productivity. A steady growth of GDP and per capita income was witnessed in the United States. Although in the 1820s and 1870s this growth was rather weak as it shows a rise in living standards every 38 years. However, the period during which the increase in U.S. [...]
[...] While the importance of Europe increases, the dominance of U.S. is decreasing. U.S. industries, like the steel industry, are becoming "antiquated" downtown ghettos, while Europe closes the gaps in its education system. Inequality in the United States is increasing, resulting in an increase in the number of students acquiring a higher education. This has resulted in a decline in unskilled labor and a return to immigration. In addition, United States faces competition from the increased supply of cheap manufactured goods. [...]
[...] The Second World War however marked a turnaround for then, as well as for Europe that began to realize its goal of catching up with American progress. Third Part: Post World War II: the economic turning point for U.S. and Europe The European situation Europe suffered many consequences of the war that it faced until 1945. It led to a decline in living standards. Europe will need to catch up on the United States in many areas. Initially, it will need to catch up with technological advances. [...]
[...] The benefits of political union American fields are spread over large areas and thus support the use of modern agricultural machinery (unlike Europe which has small enclosed fields) which is a factor of development. This has spurred innovations in farm machinery since 1850. But it was not until the combustion engine was invented that the total mechanization of farming was possible. This led to an increase of more than of GDP in the 50's. In addition to agriculture, the United States has many forests which are the primary source of fuel wood, construction material and raw materials for industry. [...]
[...] in 1963 and 1973 was due to higher availability of labor, mostly young women, while the decline in number of hours worked in Europe was in 1950 due to the social policy development implemented by governments (including the increase in the duration of paid leave). Besides the statistical data however, one must also consider the level of well-being of the average European and American. Comparison between welfare activities of Europe and the United States 1945 to 1973 was the period of post-war reconstruction. [...]
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