Is the US economy so solid?
The solidity of the US economy and the weakness of the European economy are often mentioned : growth is stronger in the United States, its new technologies sector is larger, its standard of living is higher, it is in the United States that the new companies are emerging, where the elite universities are, etc. But upon closer inspection, one might wonder whether the US economy is indeed so solid: The employment rate and the participation rate have fallen considerably compared with Europe; The overall quality of the education system is very low; The skewing of income and wealth distribution in favour of the wealthiest , which has been accelerated by the COVID crisis, creates economic inefficiency (weak demand among the middle and working classes, unproductive use of wealth); The savings shortfall creates a dependence on external borrowing, which will eventually reach a limit; Corporate concentration and the proliferation of dominant companies neuter research and innovation; The very high required return on capital has also led to financially fragile companies and weak long-term investment (infrastructure, etc.). One may therefore have reason to not be optimistic about the medium- to long-term outlook for the US economy.