I'm German.
16 years ago, the EU and US economies were neck and neck.
Today, the US economy is 50% larger than the entire EU combined.
Here's the devastating truth behind Europe's ongoing economic suicide 🧵:
16 years ago, the EU and US economies were neck and neck.
Today, the US economy is 50% larger than the entire EU combined.
Here's the devastating truth behind Europe's ongoing economic suicide 🧵:
First, let's look at the numbers:
• US GDP: $25.5 trillion
• EU GDP: $16.6 trillion
But in 2008, they were nearly equal.
What the hell happened over the past 16 years?
It's simple:
• US GDP: $25.5 trillion
• EU GDP: $16.6 trillion
But in 2008, they were nearly equal.
What the hell happened over the past 16 years?
It's simple:
Europe chose security over growth.
America chose innovation over regulation.
The results?
America has produced 9 trillion-dollar companies (9/10 of the most valuable companies in the world).
Europe? ZERO. Nowhere to be found:
America chose innovation over regulation.
The results?
America has produced 9 trillion-dollar companies (9/10 of the most valuable companies in the world).
Europe? ZERO. Nowhere to be found:
But it goes deeper than numbers...
European talent is fleeing en masse.
I see most European entrepreneurs choosing between two paths:
• The US for higher salaries ($350k+ tech jobs)
• Southeast Asia for lower cost of living to build startups
Why?
European talent is fleeing en masse.
I see most European entrepreneurs choosing between two paths:
• The US for higher salaries ($350k+ tech jobs)
• Southeast Asia for lower cost of living to build startups
Why?
Because Europe made it impossible to win at home.
Take Berlin's startup scene (where I used to live):
Founders are often viewed with suspicion. "Entrepreneur" = exploiter
I witnessed tech founders being called "capitalist parasites" at local meetups.
Take Berlin's startup scene (where I used to live):
Founders are often viewed with suspicion. "Entrepreneur" = exploiter
I witnessed tech founders being called "capitalist parasites" at local meetups.
Meanwhile in places like Silicon Valley and NYC:
Founders are celebrated. Risk-taking is rewarded.
Failure is seen as education, not embarrassment.
To make matters even worse...
Founders are celebrated. Risk-taking is rewarded.
Failure is seen as education, not embarrassment.
To make matters even worse...
Europeans are drowning in red tape:
• Employment laws making hiring/firing impossible
• Tax rates crushing small businesses
• Compliance costs killing innovation
To start a company in France takes 84 days
In America? 4 days.
• Employment laws making hiring/firing impossible
• Tax rates crushing small businesses
• Compliance costs killing innovation
To start a company in France takes 84 days
In America? 4 days.
Even French president Emmanuel Macron admits it.
When comparing Europe to the American and Chinese markets, he said:
When comparing Europe to the American and Chinese markets, he said:
The anti-innovation mindset is killing Europe.
For example, when Elon Musk built Giga Berlin, Germans protested:
"No techno-colonialism"
Tesla almost cancelled the project due to regulatory hurdles and community opposition.
This happens daily with smaller companies too.
For example, when Elon Musk built Giga Berlin, Germans protested:
"No techno-colonialism"
Tesla almost cancelled the project due to regulatory hurdles and community opposition.
This happens daily with smaller companies too.
Europe's regulatory culture created an economic spiral of doom:
• Talent leaves
• Companies avoid investing
• Innovation dies
• Economy stagnates
• More regulation follows
This is why memes like "Europoors" exist.
• Talent leaves
• Companies avoid investing
• Innovation dies
• Economy stagnates
• More regulation follows
This is why memes like "Europoors" exist.
The numbers are brutal:
• 90% of EU tech talent would move to US for right offer
• European tech salaries: 50% lower than US
• Startup funding: 5x higher in US
And Europe's few tech successes?
• 90% of EU tech talent would move to US for right offer
• European tech salaries: 50% lower than US
• Startup funding: 5x higher in US
And Europe's few tech successes?
Most of them move to America:
• Spotify (now NYC-based)
• Klarna (major US operations)
• ARM (being acquired by NVIDIA)
The theme here is obvious:
• Spotify (now NYC-based)
• Klarna (major US operations)
• ARM (being acquired by NVIDIA)
The theme here is obvious:
While Europe debates the ethics of AI...
America builds it.
While Europe regulates cryptocurrencies...
America innovates them.
While Europe protects old industries...
America creates new ones.
America builds it.
While Europe regulates cryptocurrencies...
America innovates them.
While Europe protects old industries...
America creates new ones.
The solution? In my eyes, Europe must:
1. Slash regulations
2. Embrace risk-taking
3. Support entrepreneurs
4. Lower taxes on innovation
But will they?
1. Slash regulations
2. Embrace risk-taking
3. Support entrepreneurs
4. Lower taxes on innovation
But will they?
As a European, I unfortunately doubt it.
The regulation addiction is too deep.
The anti-business culture too ingrained.
As one French friend/entrepreneur told me:
"I love Europe, but I can't build my future here. The system won't let me."
The regulation addiction is too deep.
The anti-business culture too ingrained.
As one French friend/entrepreneur told me:
"I love Europe, but I can't build my future here. The system won't let me."
This is why America keeps winning.
Not because Americans are smarter.
But because their system benefits those who build.
Not because Americans are smarter.
But because their system benefits those who build.
Europe has become a museum:
• Great at preserving the past
• Terrible at building the future
Unless Europe slashes regulations and embraces risk-taking, the gap will only widen.
As a German, this pains me deeply. I love Europe...
• Great at preserving the past
• Terrible at building the future
Unless Europe slashes regulations and embraces risk-taking, the gap will only widen.
As a German, this pains me deeply. I love Europe...
The rich culture and history.
The incredible cuisine.
The best techno scene on Earth.
The fact a 2-hour flight takes you to new worlds with new language, new culture, new country.
I'm rooted here.
The incredible cuisine.
The best techno scene on Earth.
The fact a 2-hour flight takes you to new worlds with new language, new culture, new country.
I'm rooted here.
But beneath this beautiful diversity lies a common problem:
Every European country shares the same anti-entrepreneurship mindset.
It doesn't matter if you're in Berlin, Paris, or Stockholm...
The system is designed to hold builders back.
Every European country shares the same anti-entrepreneurship mindset.
It doesn't matter if you're in Berlin, Paris, or Stockholm...
The system is designed to hold builders back.
This is forcing a generation of Europeans to make an impossible choice:
Stay in a culture we love but can't build in?
Or leave everything behind to chase opportunity?
Stay in a culture we love but can't build in?
Or leave everything behind to chase opportunity?
The question isn't if Europe will fall behind. It already has.
It's on its way to irrelevancy. And its a reason why I'm currently looking to move out of the continent.
The real question is....
Will they change course before its too late?
It's on its way to irrelevancy. And its a reason why I'm currently looking to move out of the continent.
The real question is....
Will they change course before its too late?
I write more about tech + AI trends and how you can capitalize on them in my newsletter.
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