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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: OrmontUS 🐝  😊 😞
Number: of 15056 
Subject: Re: Buffett’s view on current account deficits
Date: 04/14/2025 7:18 PM
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Ralph,

My answer necessarily is a gross oversimplification, but there are a number of other differences between most (there are a couple of exceptions) European nations and the US - both tax/economics-wise and political structure.

Most nations in Europe do not have the "reserve currency" Status of the US dollar. They generally have a VAT/GST type of sales tax embedded in the price of manufactured goods (and possibly services) as well as income tax rates which we, in the US, would deem laughably high. That gives them the ability to finance national health programs and free education (in some cases, through post-graduate school). Their minimum wage and benefit programs allow for much more vacation time, liberal maternity leave etc. In short, far happier general populations than we have in the US.

Politically, countries generally follow the "parliamentary" system of government with loads of parties. This forces sometimes awkward coalitions to choose their chief executives. In the United States version of democracy (but certainly, not one-person, one-vote), our two-party system has protected our three-pillared government quite well since its inception - with a break or two including a bloody civil war. That said, the concentration of power which has gravitated to the executive branch seems to have shaken people up. As far as enacting policies which might make them unelectable - well, forgetting about past generations, Europe currently is home to Puttan, Orban and Erdogan (well, more or less Europe).

Jeff
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