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No, Americans Aren’t Better Off Than Western Europeans

By
Matt Bruenig

You were born on the wrong continent. Yes, the United States has a greater GDP per capita than Western Europe. But that GDP has not translated into broader prosperity in time and well-being for ordinary workers.

A man reads a newspaper on the terrace of Paris's landmark Café de Flore on May 19, 2021.

When factoring in things like hours worked, retirement ages, and relative inequality, the data are clear: Western Europeans are better off than Americans despite lower GDP per capita. (Bertrand Guay / AFP via Getty Images)

There has been a weird debate over the last few months about whether the United States is better off than Western Europe. The participants of this debate tend to operate under the shared premise that people in the United States are richer than people in Western Europe, and then quibble over whether that means it is better. But this shared premise is incorrect. Once you adjust typical economic aggregates for hours worked and inequality, Western Europe clearly pulls ahead of the United States.

Gross Domestic Product

Most of these debates start by comparing the GDP per capita of various countries. Below, I have graphed these figures using OECD data.

GDP per capita, Europe and the United States

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