Europe GDP

There were several articles in the news this week expressing dissatisfaction among US allies mostly from Europe and Canada. What are the reasons for this change of heart? For years the US has run a negative balance of trade with these countries because they charge higher tariffs than the US and this led to almost a one trillion-dollar annual deficit. The US is adjusting their tariffs to offset some of this deficit. Europe spends 1.75% of their GDP on defense while the US spends 3.75%. The US has been providing for the defense of Europe so they used the extra funds to provide social programs for their citizens, things like national healthcare. The US is now reducing spending toward Europe’s defense and Europe is asked to increase their spending up to 5% of GDP. The US was giving military equipment to Europe to send to Ukraine but now the US is selling this equipment to Europe. There are 32 countries in NATO and the US pays 20% of the cost and provides 40% of the troops. The EU is now being asked to invest more in NATO. The US with $39 trillion in national debt cannot afford these payments and our allies must begin to pay their fair share. Europe, with this help from the US, has grown lazy. They have shorter work weeks, longer vacations, more holidays and earlier retirement than Americans. The average GDP per person in Europe is $54,000 vs $94,000 in the US. The US supplied gravy train is coming to an end and they are unhappy.