Why do the economies of Europe lag behind the US and Japan?

Answer 1

Boatloads of regulation = high compliance cost
Large welfare = decreases incentives

But don't worry, Sarbanes-Oxley is going to put an end to that.
And so are the rest of the Populist laws the US citizens are screaming for.
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Answer 2

In the past few years the euro has climbed from parity with the dollar to its present position where the euro is equal to $1-30 Americas balance of payments with other country's is in serious deficit and is getting worse ,all the major European countries have a united foreign policy and economic aims and first class health services which are available to their citizens at very little cost ,on the whole I think that socially and economically Europe is the better place

Answer 3

European Economies are seldom united on critical issues about overall Europe Economy. Countries there prefer to follow individual plans than a coordinated effort in may areas such as Economy, Foreign Policy.

European Economies are less aggressive and positive about economic prospects of their initiatives towards economic growth.

European Economies need to be appreciated because they are more serious, honest and committed towards global warming and pollution. Recently, they have decided time framed efforts to reduce emissions on gases.

However, US is not serious about global warming and emission issued unfortunately.