https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2024...
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2024...
> if that gamble pays of the US is still in trouble (as is the rest of the world)
Which will probably strengthen the relative position of the US.
True, however, the US does more export manufacturing than the EU and at higher profit margins to boot. So even without the AI industry, the US is still in a far stronger place economically than EU.
The EU's massiv offshoring efforts, lack of innovation investments, red tape, environmentalism and high energy prices have left its domestic industry weaker and more vulnerable to foreign competitors and malicious foreign dependencies it can't control since it doesn't have any hard power to use as leverage to protect its industry.
Sure, the EU started to remilitarize and move away from fossil fuels to renewables, but this titanic effort is gonna pay back and maybe restore balance in 5-15 years time, and it remains to be seen if by then its economy will have just fallen further behind, since investors and the world aren't standing still waiting for the EU to catch up with them, but are instead exploiting the EU's current weakness to pull further ahead.
Like Germany's exports are now back to 2006 levels, and its domestic giants like BASF is further downsizing operations in Germany and building a massive 10 billion $ factory in China which is totally not gonna make Germany's policies tied to the whims of the CCP the same way they were tied to Russia's gas. BOSCH just announced 20k more job cuts in Germany and moving abroad till 2030. etc
Remains to be seen if this damage can be undone in the future, as things are currently patched up by massive government spending to cover up the private industry lack of spending, which isn't sustainable and eventually the cracks will get bigger.
China's security establishment has gone public with the view that their purpose is no longer to find answers to the question 'how do we survive the US?', but instead to something like 'how do we manage the US?'.
In the coming years US power projection is not going to look anything like the stuff we grew up with, that social and military influence just does not exist anymore. Right now, things are pretty good, compared to what they'll be in a year or two. It's likely we'll get a brutal el Niño, fertilizer and lubricant shortages, gnarly energy prices and more, all at the same time. The US is closing down food production at a rate that would keep me up at night if I lived there.
The EU has some issues, the economy isn’t the most dynamic, but the quality of life is great and has been improving. It is a large global market and has cultural influence. Our democratic institutions have survived ok so far. I think we are doing quite ok. We will see if we can deal well with issues caused by our aging population, that’s pretty challenging but I think we are in a reasonable position (and actually a more than great position if we compare worldwide)
To put it politely, America is just not, at this moment in time, with a predictable actor with rational self interest.
If things continue to fail, then its simple to assume we return to the spheres of interest stage of things, at which point the EU still functions as a bloc which everyone trades with.
Plus, American GDP figures are matched with a K shaped economy, and a population with a deep sense of unease and unhappiness.
The US has very little influence today compared to a decade or more ago. To the extent that the world at large cares about the US it's because they are committing genocide and destroying global trade logistics. All of their former allies are trying to substitute them out, or at least hedge with other international relations.
As far as I can tell, outside certain parts of the Occident, no one cares about new US movies or television series anymore. The Oscars gather some interest because some people want to know if any entertainment industry people will go against the regime and say something negative about mass murder of children, but that's about it. Future generations will be shaped more by chinese and indian movies than usian ones.
When apartheid South Africa was about to crumble it also initiated nasty military campaigns and faked political and military supremacy for a while, as did Idi Amin's Uganda. I'd bet something similar is going on in the US.
Some people are still stuck in the late Cold War, notably EU politicians like von der Leyen and Kaja Kallas, as well as most swedish top politicians. They cannot imagine a world where the US is not calling the shots and will drag Europe further into global irrelevancy by idiotically paying tribute and kneeling for the US. Pretty much the rest of the world is disgusted and horrified by the bumbling nastiness of contemporary US empire.
I find it a little hard to believe that Russia or China or whoever in the East or South is quietly puppeting all the bullshittery happening now. Maybe a little less hard to believe that the West has just collectively decided to huff lead gas fumes and lose our collective minds for a generation.
Maybe this is just how corrupt capitalistic societies die and the East is happy to sit back and watch us burn ourselves to the ground.
Of course, that is mostly paid for via massive amounts of debt, not from savings of military spending. But government spending on healthcare is more than twice (2.5 to 3 times) that of military spending. So slashing military spending to zero would just mean the amount of government-provided healthcare spending could go from 47% to 56% or so. (Not taking into account that a lot of "military spending" is actually healthcare spending!)
Single payer would be drastically cheaper than the current system.
The other benefits are just policies that slightly reduce GDP per capita based on a first order analysis.
We are able to afford so many other subsidies, so unclear why housing would be different.
