Financial difference between the United States and other countries
Each year, the US produces more money per person than any other economy of the world. In 2015, the real GDP per capita was about $56,000 in the United States. However, the real GDP in the same year was about $47,000 in Germany. The GDP of other places are $41,000 in France and the UK and just $36,000 in Italy. In fewer words, the United States remains richer than its peers. Let us talk about the financial difference between the United States and other world countries:
1. An entrepreneurial culture
Individuals in the US have the desire to start their own business and grow it. They are also willing to take risks. However, there is less penalty in the US for failing and starting again. Even the students of schools and the colleges show their entrepreneurial skills.
2. World-class research universities
US universities spend a lot on the basic research that derives the high-tech entrepreneurship. Top research universities in the US attracts talented students from around the world. Also, many of those students stay in the US for a lifetime.
3. A financial system that supports entrepreneurship
When comparing the United States and Europe, the US has a more developed system of equity finances. It includes investors who are willing to invest in startups. The US has a very large capital market that helps the growth of these firms.
4. A growing population, including from immigration
American’s growing population involves a large number of youth. Therefore, this helps to have a more flexible and trainable workforce in the US. Although there are several restrictions on immigration in the US.
However, there are some rules which if followed, will help an individual to gain citizenship or green card. This is completely based on individual talent and industrial sponsorship.
5. A culture that encourages long hours and hard work
According to a survey, the average working hours of an employee in the US is 1,800 hours per year. This varies from different parts of the world. But in general, working longer in hours will lead to more productivity and higher real incomes.
6. A supply of energy that makes North America energy independent
Natural gas itself has provided the US with plentiful and also relatively cheaper energy. This helps the US to grow in terms of energy.
7. A smaller government than other industrial countries
According to the OECD outlays of the US government at the state and local totalled at about 38% of GDP. The corresponding figures stated about 51% in Italy, 44% in Germany, etc.
The higher GDP implies a higher level of income. It also highlights higher transfers of payment that helps reduce incentives to work. Therefore, there is no doubt saying that Americans work a lot and are paid a huge amount to do so.
8. A decentralized political system in which states compete
Competition among different states encourages work and entrepreneurship. States compete for business and individual residents. Also, they have their separate legal rules and tax regimes. States provide high-quality universities even for low income students. Different universities compete with their legal liability rules. Therefore, the US is unique with its high-income nations in the degree of potential decentralization.