Anheuser-Busch Briefing Center, U.S. Chamber of Commerce
1615 H St NW, Washington, D.C.
Registration and Breakfast: 8:00 a.m.-8:30 a.m.
The Economist has a new article out arguing that much of the difference in wealth and productivity between Europe and America comes down to cities. That is, that we are more prosperous because we have more people living in urban areas than Europe does. This facilitates knowledge spillovers that in turn lead to productivity growth, as my piece in the latest Business Horizon Quarterly explains. Roughly three-quarters of the difference in per person GDP between America and Western Europe can be explained by Europe’s smaller urban areas.
And why do we have more people living in cities? It comes down to regulations. European regulations ultimately limit the size of their cities and thus constrict growth and prosperity. Here’s a key quote [emphasis mine]: