J.D. Tuccille argues that despite flawed U.S. economic policies, Americans are surging ahead in wealth compared to Britain, Europe, and Canada. The divergence is so stark that many Britons are unaware of how far they have fallen behind.
Misperceptions of Wealth
A recent paper by the Institute of Economic Affairs (IEA) reveals that most Britons believe the average UK resident is as rich as those in Switzerland, the United States, or Germany. In reality, the UK ranks behind every U.S. state in GDP per capita, including Mississippi. IEA pollsters noted reactions of shock and anger when participants learned this fact.
Widening GDP Gap
According to World Bank data, from 2008 to 2023, EU GDP grew by 13.5% while U.S. GDP surged 87%. The UK’s GDP increased only 15.4%. As a result, EU GDP fell from 110% of U.S. GDP to 67%. Per capita, Americans now enjoy $84,534 compared to $53,246 in the UK and $54,340 in Canada.
Canada has fared slightly better than the UK, but still lags. The Economist reported that between 2019 and 2024, Canada’s provinces fell from being slightly richer than Montana to worse off than Alabama. The gap continues to widen as the U.S. economy outpaces its peers.
Reasons for Divergence
The IEA attributes the U.S. advantage to freer markets, more business startups, and greater job mobility. Britain’s economy has become less dynamic, with fewer new businesses and less labor flexibility. A return to free-market principles could help other nations catch up.
