Member-only story
The Stagnation of Europe
Why the Old Continent is becoming increasingly irrelevant
In 2008, US and European productivity was hand in hand, but since then, the gap has only increased, and at the time of writing this article, it is now 20% higher in the US than it is in Europe.
What are the reasons behind this?
Regulatory environment
The EU regulations burden growth and innovation. While regulation is desirable in some areas, too much regulation can make it hard for companies to grow and compete globally.
For example, the US and China are focusing on the development of artificial intelligence while the EU only focus on regulating it, even though there’s no relevant development related to AI in Europe. The cake is divided between China and the US while Europe is just a mere spectator.
Not only that, regulations in this area delay the usage of new AI technologies in Europe as was the case with Apple Intelligence.
Another example would be the adoption of the USB-C charger as universal, now compulsory for all mobile phones. While this might seem like a good idea (using the same charger for all devices), it will prevent the development of new and better chargers and potentially also prevent the use of better ones developed by…
