The Political Orphanage

Why Europe is Poorer than America

38 snips
Sep 24, 2025
In this discussion, Sam Bowman, Editor at Works in Progress and former executive director at the Adam Smith Institute, delves into why Europe’s economic performance lags behind the United States. He argues that Europe's issues are largely self-inflicted, covering everything from rigid labor laws to a lack of venture funding. Sam also highlights the cultural attitudes towards entrepreneurship, the impact of energy costs, and practical policy recommendations for boosting innovation. His insights challenge perceptions and suggest a more dynamic economic future for Europe.
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INSIGHT

Self-Inflicted European Slowdown

  • Europe suffers self-inflicted economic stagnation despite rich culture and cities.
  • Sam Bowman argues embarrassment can motivate reforms to restore growth and dynamism.
ANECDOTE

Ireland's Recovery Fueled By National Humiliation

  • Sam recalls Ireland's post-crisis reforms driven by national humiliation and urgency.
  • That shame motivated radical policy changes and rapid economic improvement.
INSIGHT

Labor Rigidity Chills Innovation

  • Rigid labor rules reduce firms' willingness to take risky bets that drive innovation.
  • Bowman links inflexible firing laws directly to fewer startups and slower industrial pivots.
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