GDP Growth in U.S. Outpaces Europe, But Productivity Gap Narrows When Adjusting for PPP and Hours Worked
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GDP per person has grown faster in the U.S. than in Western Europe, but productivity growth is similar when adjusting for purchasing power parity and hours worked.
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Goods and services cost more in some countries than others, so GDP comparisons should use purchasing power parity, not just market exchange rates.
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Europeans work fewer hours than Americans partly due to demographics, unemployment policies, and vacation time.
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On an hourly basis, countries like Austria, Belgium, and Denmark are more productive than the U.S.
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Europeans may prefer more leisure time over higher GDP, even if it means lower overall economic output.