Is the American state of Mississipi wealthier than the European Union? Sounds weird, but it may well be according to University of Michigan Professor Mark J. Perry.
By making a comparison between recently released data by the Bureau of Economic Analysis on the GDP per capita produced by U.S. states in 2010 with the output per capita in the European countries (adjusted for PPP), many conclusions can be drawn after a “top ten” GDP-per-capita rank is developed. Here is what Professor Perry came up with:
Some of his findings below:
“1.The European Union as a group ($32,700 GDP (PPP) per capita in 2010) ranks below America’s poorest state, Mississippi ($32,764).
2. Even relatively wealthy (by European standards) Switzerland would rank #32 as a U.S. state, behind Georgia. The countries of Belgium and Germany would rank even lower at #46 and #47, and the U.K., Finland, and France would be close to the bottom of American states, below #48 South Carolina.
3. Spain, Italy, Greece and Portugal all rank below America’s poorest state (Mississippi) for GDP per capita. “
And this is based in 2010 numbers, which probably look too good for Europe circa 2012.
Anyway, one must recall what Paul Krugman wrote back in 2010 in his NYT article called “Learning from Europe” (what’s not to learn, right?):
“The story you hear all the time about Europe — of a stagnant economy in which high taxes and generous social benefits have undermined incentives, stalling growth and innovation — bears little resemblance to the surprisingly positive facts. The real lesson from Europe is actually the opposite of what conservatives claim: Europe is an economic success, and that success shows that social democracy works. The European economy works; it grows; it’s as dynamic, all in all, as our own.”
Excellent remarks… if you were in the 19th century.
Source: Carpe Diem