Americans are generally richer than Europeans (2024)

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Americans are generally richer than Europeans? ›

By this metric, the EU as a whole was 75% as affluent as the U.S. in 2022. The OECD gives less favorable, but still fathomable, figures: in 2021, the average household in the European Union had 61% of the gross disposable income of the average household in the United States.

Because Americans are also more productive per hour worked than most Europeans, their average incomes are higher than in all European countries bar Luxembourg, Ireland, Norway and Switzerland.

By now, the facts of Britain's relative poverty are like a catechism: we are the poorest country in northwestern Europe, and, at purchasing power parity, 20 per cent poorer than America. Take away London, and we're poorer than every single US state.

The old myth of the superpower US as a rich, modern and efficient economy remains alive, underpinned by a per capita gross domestic product (in 2022) 57 per cent higher than in Germany—still 21 per cent superior after adjusting for the differential effect of exchange rates on purchasing power.

The American economy is fueled by high productivity, well developed transportation infrastructure, and extensive natural resources.

In terms of good old per capita GDP, it's not much of a contest: Switzerland has higher per capita income than the U.S., but the U.S. comes out ahead of the Northern European countries — Sweden, Germany, Denmark, and the Netherlands — and well ahead of other European countries like France.

OECD data shows that in real terms 2022 dollars PPP, US employees made $78,000 a year to the UK's $54,500 – some 43pc less. This means UK workers are considerably worse off than their US counterparts, all things considered.

Burundi is the poorest country in the world, with a per capita GNI of $240 using the Atlas method and a PPP of $840.

Luxembourg is currently the richest country in the world based on its GDP per capita (PPP) of $143,742 according to the 2024 IMF report. Ireland, Singapore, and Qatar trail behind at $133,895, $133,737, and $112,282, respectively.

What is America's main source of income? ›

Sources of Federal Revenue

So far in FY 2024, individual income taxes have accounted for 52% of total revenue while Social Security and Medicare taxes made up another 34%. Government revenue also comes from payments to federal agencies like the U.S. Department of the Interior. Have you visited a national park recently?

America's leadership in wealth creation is spilling over into spending and investing. A report from UBS and Art Basel finds that the U.S. is the leader in global art sales, accounting for 42% of sales by value. The U.S. also leads the world in sales of the highest-priced works.

According to the Organization for Economic Co-operation and Development, the average annual salary in the US was $77,000 in 2022, compared with $52,700 (PPP) in France.

Let's Find Out the Tax Rate in Europe vs US

Even though personal income tax rates differ from one country to another, they can also vary depending on the tax brackets. In general, taxes in Europe vs US tend to be higher. When considering Denmark's taxes vs US, the income tax can vary from 8 to 56.5 percent.

Another observation is that U.S. output per person is about 40 percent higher than in the European countries, with most of the differences in output accounted for by differences in hours worked per person and not by differences in productivity, that is, in output per hour worked.

Europe is cheaper than the U.S. based on variables such as prices of goods and services, exchange rates, and market conditions. Being savvy and knowledgeable about local customs, price patterns, and international financial matters can help a visitor maximize the advantages.