Adam Tooze: Why the Economic Gap Between the U.S. and Europe Is Growing

Cameron Abadi

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The U.S. economy is now bigger than the EU and U.K. economies combined, at $25 trillion vs. $19.8 trillion—a reversal from just 15 years earlier, when Europe’s economy was $1.5 trillion larger. And it’s a trend that seems to be growing. The U.S. economy has low unemployment and continues to grow. The mood in Europe, meanwhile, is grim, with Germany staring down recession and still struggling with inflation. And that mood tracks with the anxieties of European policymakers, who swing from fear that the United States isn’t committed enough to the fight in Ukraine, to anger on its lack of coordination on economic issues ranging from China to climate policy.