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A just released EU Observer report states the obvious: If income (GDP per capita) would grow in the US at 2 percent per year and in the EU at 3 percent per year, meaning a 1 percent higher growth of the EU, the EU would catch up with the US around 2045. Europe is a full generation behind and poorer than the Americans. Imagine the furor in the States if CNN reported that Americans lived in 2007 on 1977 living standards versus their European rivals. There would be a revolution.

Europe has many problems. A six layered over-taxed, over-governed post-modern concept is sure to fail. That much is obvious. Structural weaknesses are apparent that will ensure Europe remains far poorer than North America. High marginal tax rates and 50% of GDP taken by government is the manifestation of deeper malaises. Poor university education; restrictions on labor and capital; corruption; and a cultural ethos that is anti-American, anti-work, anti-civilisational and anti-modern are the core problem areas that need reform. But this will never happen.

Take education as one example. Europeans dont understand that a higher degree is an investment that must be paid back through higher wages. Such a simple premise escapes them.

University or college is a longer term project of personal growth and income accumulation. If the education market is distorted the investment becomes either worthless or of low quality. Nothing good in life is for free. The average graduation age for a 4 year degree in Europe is 28. In North America it is 22. North Americans typically start working part-time as teenagers no such impulsion to work exists in Europe.