Europe outperforms US in academic test scores, US trounces Europe in wealth creation

[BabyBoomer50s]

You have a reading comprehension problem. I am not surprised.



Innovative high-tech companies continue to spawn in California. Look at how many of those $30 trillion companies you cited are located there.

You didn’t address why those companies continue to grow in relatively high tax California but not in low tax red states like Mississippi and West Virginia. The truth is there is no proof that tax rates are a determining factor in entrepreneurship or innovation.

The article draws distinctions between America and Europe, not between individual states. What do you attribute the huge gap in wealth creation to?

 

[SebastianHolt]

Smart editorial in today’s WSJ. Excerpts below. Risk taking culture coupled with growth oriented taxation and immigration policies matter. The last paragraph is really important. The importance of merit-based immigration cannot be understated.

Why the U.S. Economy Is Trouncing Europe’s
Americans do worse in education scores, but the Continent lacks the U.S. risk-taking culture.
——————-

According to data released last week by the Organization for Economic Cooperation and Development, only about 12% of Americans score at the highest levels on internationally administered academic tests, while 34% score at the lowest levels—nearly three low scorers for every high scorer. Germany’s figures are nearly even: 18% score at the highest levels and 20% at the lowest. Put another way, Germany’s ratio of high to low scorers is almost three times America’s. Scandinavia’s is five times; Japan’s, seven.

Yet America excels relative to Europe despite these enormous differences. While Europe has created 14 companies worth more than $10 billion in the past 50 years, with about $400 billion of market value in total, Americans have created nearly 250 such companies, worth $30 trillion.

That success has driven up America’s middle-class incomes. The median disposable U.S. household income, according to the OECD, is now 25% greater than the median German household and 60% greater than the median household in Italy.

Europeans’ incomes would be even lower if they weren’t free-riding on American innovation, defense spending and higher drug prices, which incentivize research. America’s median incomes would be higher if we had more talent devoted to supervising and creating jobs for blue-collar workers or Northern Europe-like distribution of test scores.

The outsize success of America’s talented entrepreneurs doesn’t stem from their superior intelligence. It comes from working at companies such as Google and Microsoft , which mine the technological frontier and expose employees to valuable knowledge, insights and opportunities. Apple is worth more than the 30 largest German companies combined. Apple’s employees and its alumni use their knowledge and training to create more value than their counterparts in Europe.

Unlike Europe, the enormous success of American entrepreneurs motivated an army of talented Americans to get valuable on-the-job training, work longer hours, take risks and succeed. A small amount of success bubbles up from a large pool of failure.

The belief that taxing success more heavily will scarcely slow inevitable progress ignores the importance of being first to market and founding successful companies in America rather than the rest of the world, the enormous difference in the training and expected payoffs for successful risk-taking that it creates for America’s talented workers, and the motivational effect higher expected payoffs for successful risk-taking have on our talented workers.

Studies of short-term tax elasticity laughably miss the enormous difference between the success of the U.S. and Europe. Even if Europe cut its tax rates, it would have a trivial short-term effect on the expected returns to risk-taking, because without companies such as Google, entrepreneurs wouldn’t come up with ideas worthy of investment regardless of the tax rate. It takes decades of successful risk-taking to create companies and workers who can spawn the next generation of success.

The argument that we can heavily tax the tail of the distribution of payoffs without discouraging prudent risk-taking—since entrepreneurs such as Bill Gates and Steve Jobs took risks without expecting the enormous success they achieved—fails to recognize that outsize payoffs at the tail of the distribution critically drive overall expected risk-adjusted returns above break-even. Even with these successes, the returns to venture capital over the last 20 years have been mediocre at best.

When entrepreneurs capture as little as 5% of the value they create for others, it makes little sense to encourage successful risk-takers to quit working long before they achieve outsize success. With the effect technological success has on the productivity of talented American workers, who are our constraint to growth, and the effect of their productivity on the growth of middle-class incomes relative to Europe, that’s not a “policy failure.”

The fastest way to accelerate America’s growth and increase tax revenues is to let high-skilled immigration expand our talent pool. Forty percent of America’s billion-dollar startups were founded by high-skilled immigrants—roughly the same percentage of STEM doctorates held by foreign-born American workers.
https://www.wsj.com/opinion/the-us-...55c7a?st=Q8xtDZ&reflink=article_copyURL_share

USA kids were #1 in the world till we created the Department of Education, and the world passed us by. Thank you fucking jimmie carter

 

[SebastianHolt]

They are not from Mexico .... the south and central America bring us down

The fastest way to accelerate America’s growth and increase tax revenues is to let high-skilled immigration expand our talent pool. Forty percent of America’s billion-dollar startups were founded by high-skilled immigrants—roughly the same percentage of STEM doctorates held by foreign-born American workers.
https://www.wsj.com/opinion/the-us-...55c7a?st=Q8xtDZ&reflink=article_copyURL_share

 

[SebastianHolt]

You have a reading comprehension problem. I am not surprised.



Innovative high-tech companies continue to spawn in California. Look at how many of those $30 trillion companies you cited are located there.

You didn’t address why those companies continue to grow in relatively high tax California but not in low tax red states like Mississippi and West Virginia. The truth is there is no proof that tax rates are a determining factor in entrepreneurship or innovation.

people want to live in CA due to the weather

 

[Wilson23]

USA kids were #1 in the world till we created the Department of Education, and the world passed us by. Thank you fucking jimmie carter

RWs are always demanding the abolition of the DOE, but they can never name anything objectionable that it does.

In fact, they can never name anything that it does.

 

[SebastianHolt]

RWs are always demanding the abolition of the DOE, but they can never name anything objectionable that it does.

In fact, they can never name anything that it does.

well the DOE has failed and is failing. We need to terminate everyone and start over

 

[MajorRewrite]

RWs are always demanding the abolition of the DOE, but they can never name anything objectionable that it does.

In fact, they can never name anything that it does.

Replying to the mentally disabled OryginalnyHolt just enables his ignorant rants.

 

[Wilson23]

I hope we all can agree here that knowledge is of greater value than wealth, IF you have to choose.

 

[Wilson23]

well the DOE has failed and is failing.

How, EXACTLY?

 

[nowisthetime]

How, EXACTLY?

You can't reason with that poster, it seems to seek attention like that Ann troll.They are not interested in logical debates, this was noted ever since people got on him in the affordable housing thread whining about "blacks, illegals, and crackhead whites" and in the primaries thread, called Jasmine Crockett out of her name being the racist gutter dweller that he is.

The Republicans who seemed to have a brain either kicked the bucket or left, so all we have now are magat alts and trolls.

 

[Philthy_Phil]

Yeah but Americans are pro pedophile so they lose every time.

 

[Olderwiserstillhorny]

So the US is becoming a country of rich ignorant people?
I figured that out years ago.
Look at Minnesota, Walz brags about grad numbers up, intelligent level down.

 

[Philthy_Phil]

So the US is becoming a country of rich ignorant people?
I figured that out years ago.
Look at Minnesota, Walz brags about grad numbers up, intelligent level down.

Maga is the definition of low IQ. Every magats seems to be an imbecile.

 

[GuiltyCowboy]

So the US is becoming a country of rich ignorant people?
I figured that out years ago.
Look at Minnesota, Walz brags about grad numbers up, intelligent level down.

‘Countries’ don’t become rich. You need to say who is getting richer. Which people.

If a small group of people get richer, and then squirrel their money away in foreign tax havens, that does not mean their country is getting richer.

 

[Wilson23]

Yeah but Americans are pro pedophile so they lose every time.

The ancient Greeks won a LOT of their wars.

 

[SebastianHolt]

How, EXACTLY?

Before the DOE, America was #1 in education ... now these kids are fucked

 

[SebastianHolt]

Replying to the mentally disabled OryginalnyHolt just enables his ignorant rants.

dude, you are a deranged brainwashed idiot

 

[Wilson23]

Before the DOE, America was #1 in education ... now these kids are fucked

But through all that time, public schools are still run by elected local boards. Even states play a very limited role. The DOE matters hardly at all.

 

[Wilson23]

dude, you are a deranged brainwashed idiot

No TRUMPER gets to call anybody THAT!

 

[SebastianHolt]

No TRUMPER gets to call anybody THAT!

don't be a retard

 

[SebastianHolt]

But through all that time, public schools are still run by elected local boards. Even states play a very limited role. The DOE matters hardly at all.

I agree that the DOE is a dept we can kill

 

[Wilson23]

don't be a retard

That neither.

 

[Wilson23]

I agree that the DOE is a dept we can kill

But it is NOT a high-value target. At worst the DOE is ineffectual and therefore a waste of money. But there is no way in which ending it would IMPROVE education in America.

And the whole RW thinking on this is entirely backward. They seem to object -- seem; reasons never are clear -- to the DOE as an instance of federal meddling in local business. But if we look around the world at those countries whose educational systems produce better results than ours, one thing they all have in common is CENTRALIZED NATIONAL CONTROL OF THE SYSTEM. That's how WE need to do it. Don't abolish the DOE, abolish local school boards!

 

[nowisthetime]

To the OP, obviously all that wealth is concentrated to very few people, in many districts there are significant budget cuts to special education impacting the most vulnerable. You should be outraged about that if you had a functioning heart and brain.

Meanwhile, sending more and more funds to private school vouchers for families who can already afford education while continuing to cut funds for families who desperately need specialized education for their children. How does that look? Is that something to be proud of? Then you all whine when the cycle of poverty continues, which takes me to the next point...


Magats, like a particular alt in here, create threads bitching about a few million spent on affordable housing for the poor and vulnerable people, yet nowhere to be found when their party asks for hundreds of billions to bomb human beings in other nations for no reason. You all are sick in the head.

 

[SebastianHolt]

But it is NOT a high-value target. At worst the DOE is ineffectual and therefore a waste of money. But there is no way in which ending it would IMPROVE education in America.

And the whole RW thinking on this is entirely backward. They seem to object -- seem; reasons never are clear -- to the DOE as an instance of federal meddling in local business. But if we look around the world at those countries whose educational systems produce better results than ours, one thing they all have in common is CENTRALIZED NATIONAL CONTROL OF THE SYSTEM. That's how WE need to do it. Don't abolish the DOE, abolish local school boards!

why do we have a federal DOE and every state has a DOE talk about a waste!!!

Did our education system advance to a point where kids have tablets with digital books and outlawed paper books?