The continuous and mostly unnoticed European impoverishment
Anyone who has had the opportunity to recently travel around the United States will have easily noticed a widespread increase in prices, particularly perceived by those whose reference currency is the Euro. Is it just the logical effect of the continued revaluation of the Dollar over the Euro, from 0.70 Euros to one Dollar at the most virulent outbreak of the 2008 crisis, to the current 0.95?
The exchange rate alone does not fully explain the current price disparity between Europe and the United States, and it is necessary to analyse the overall behaviour of the two major economies since the crisis and, in particular, in recent pandemic and post-pandemic years. In fact, it is not just the verification of the gap in relative prices but the general and more relevant perception that economic activity and living standards have shifted enormously in favour of Americans.
GDP figures do not deceive and if they do (anticipating the perennial mistrust of a territory's main economic activity indicator) they are equally imprecise on one side or the other of the Atlantic. The truth is that in 2008 the GDPs of the Eurozone and the United States were equivalent at current prices and at around 14.5 trillion Dollars each. Currently, the GDP of the Eurozone is around 15 trillion (18 trillion if we add the United Kingdom) while the GDP of the United States is today almost 27 trillion. In summary, two-thirds of the gap generated is caused by the revaluation of the Dollar (in any case equally significant) and ...
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