US High School Economics class: How is the US economy managing to power ahead of Europe?

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How is the US economy managing to power ahead of Europe?

Discussion Questions

  • What are the IMF’s growth forecasts for the US, the eurozone and the UK for 2024?

  • What are some of the reasons for the persistent economic divergence between the US and Europe?

  • How has the invasion of Ukraine by Russia differently affected the economies of the US and Europe?

  • What structural advantages does the US have over Europe in terms of industry and technology?

  • Why is access to finance more straightforward in the US compared to Europe, and how does it affect economic growth?

  • How do demographic trends and labour market dynamics contribute to the economic growth gap between the US and Europe?

  • What fiscal challenge is the US facing that could threaten its economic growth, and what does it imply for future policy decisions?

Economic Research

  • Go to the World Bank’s website to compare historical rates of GDP per capita. What is the current GDP per capita for both the Euro Area and the United States? (To find answer, place your mouse over the line for both areas, on the farthest area to the right) 

  • Look again at the same chart. What do you notice about the growth rates between the two areas from 2008 until the present? 

  • Which Euro area country had the lowest GDP per capita in 2022, and how does it compare to the United States’ GDP per capita in the same year?

Joel Miller and James Redelsheimer, Foundation for Economic Education.
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