President Trump’s war in Iran is petering out inconclusively. But the smart money — judging by US equity prices — is that American economic resilience will win the day. Many analysts are betting that Iran’s closure of the Strait of Hormuz and other turbulence generated by the recent Persian Gulf war are much more likely to squeeze Europe than either the United States or its Chinese rival.
Which raises a larger question: why is Europe falling behind? The average European is much better off than the average Chinese, and the EU population of 450 million is larger than that of America, with its 324 million. And yet in one industry after another, Chinese or US firms dominate world markets and global rankings. Between them, Chinese and American firms are responsible for 40% of global output.
Even worse, Europe is lagging…
