Why Europe is Facing Decline — and What America Can Do to Avoid a Similar Destiny

There is a growing consensus among some politicians across party lines that America requires stricter regulations to safeguard workers.

Republican Senator Josh Hawley advocates for regulations that bolster union powers.

Barack Obama’s former secretary of labor points out the lack of fairness, equity, safety, and even consideration for children in current policies.

They argue that European nations enact more comprehensive worker protection laws, claiming that “Europe is better.”

Economist Sven Larson sharply disagrees, stating, “If you’re a worker, you don’t want to live in Sweden!”

One major issue is that the unemployment rate is at 10%.

Larson comments, “If you lose your job, you’re unlikely to find another one.”

There was a time when the economic growth rates of the United States and the European Union were comparable. However, around 15 years ago, Europe’s growth stagnated.

Today, the U.S. boasts a 50% higher wealth level—even with Europe having an additional 100 million people.

Europe resembles a large museum; it relies on tourism for income, and due to minimal growth, even Mississippi, the poorest state in America, is now wealthier than many European countries.

The origin of this disparity lies in policies that some Americans wish to emulate, such as increasing taxes on the wealthy.

Larson poses a rhetorical question: “What happens when affluent individuals are no longer available for taxation? You start taxing the ‘almost rich’—and eventually, you deplete this group too.”

Yet, there are indeed individuals in the U.S. who are incredibly wealthy.

“Even if you total up their worth,” he explains, “it’s still insufficient to cover the federal government’s commitments.”

Consequently, taxes are levied on the average worker.

He remarks that in Sweden, “Average workers pay a higher percentage of taxes than someone earning $400,000 in the U.S.”

But at least healthcare is free there.

Larson counters, “You are entitled to free healthcare, but receiving that care can be a different matter. I know individuals who have died in the Swedish healthcare system due to delays in treatment.”

However, Europe is known for its generous welfare programs.

I tell Larson, “They support their citizens!”

He retorts, “But that can also trap you. People become stuck in lower-paying jobs and aren’t inspired to start businesses like we do.”

One of the barriers to entrepreneurship is that European regulations designed to “protect” workers make it difficult to dismiss underperformers.

Larson states, “You need to navigate an incredibly bureaucratic process.”

“The government determines whether your claim about an employee’s ineffectiveness is valid. Why would anyone hire anyone when you’re held accountable for them for life?!”

That’s a significant factor contributing to Europe having an unemployment rate that is 50% higher than that of the U.S.

I often express concerns regarding America’s overreaching regulations. However, Europe enforces even stricter regulations.

“In America,” Larson observes, “You can slap a sticker on a pickup truck that says ‘Bob the carpenter,’ and you have a business. You can begin earning money. In Europe, you deal with fees and have to engage with bureaucrats.”

EU regulations also heavily favor unions.

Larson explains that in Sweden, unions “can act almost like a mafia,” coercing utility companies into cutting off electricity, halting garbage collection, and preventing banks from processing payments.

They have taken actions against non-union companies like Tesla by blocking the delivery of new license plates.

This union power, coupled with excessive bureaucracy and high taxes, has resulted in Europe having no representation among the world’s largest corporations.

As it stands, no European company breaks into the top 20; American firms dominate that list.

I ask Larson, “Don’t European governments recognize the damage these policies inflict on their economies and adapt their regulations?”

“No,” he responds. “Many politicians benefit from having a populace that relies on government assistance, as this secures votes. In America, there’s still a sense of independence and the belief that individuals can improve their own circumstances, a mindset that is less prevalent in Europe.”

Currently, we retain that spirit.

Yet, it is under threat from the 300,000 bureaucrats who create and enforce regulations.

And that’s just at the federal level; states and local governments employ even more!

That’s a significant number of individuals who feel that unless they are imposing additional rules, they are not fulfilling their responsibilities.

We must stop them before they render America as stagnant as Europe.

John Stossel is the author of “Give Me a Break: How I Exposed Hucksters, Cheats, and Scam Artists and Became the Scourge of the Liberal Media.”