In the wake of the Global Financial Crisis, the S&P 500 has vastly outpaced the Eurostoxx index, highlighting a significant shift in global capital flow. Once, European giants rivaled American firms. Today, Europe struggles to produce a match for the tech titans of the U.S., with China emerging as the new competitor.

Key advantages driving the U.S. include a younger, dynamic population, a steady influx of high-skilled immigrants, and business-friendly regulations. Meanwhile, Europe is hampered by a fragmented financial system, a stifling public sector, and a culture resistant to risk and innovation. To make matters worse, Europe’s tendency towards overregulation and its zealous climate policies have further strained industries. Soaring energy prices and the resulting energy poverty are accelerating deindustrialization, pushing the continent closer to becoming an open-air museum.