2022 may be remembered as the year when living standards in the US truly pulled away from those in Western Europe. One concrete piece of evidence is the collapse of the euro to parity with the dollar, or lower yet, but there is also a more general sense that the gap is widening.

The old narrative was simple: Per capita incomes in the US might range 30% higher or more, but Western European lifestyles are less stressful and more relaxing. European health care systems, and their near-universal coverage, are also superior.

That narrative now lies in tatters.

The major disruptor has been energy markets. The US really does seem to have energy independence. Americans complain about high gasoline prices, but the American way of life has barely been affected. This summer Americans took to the road in record numbers. Energy supplies to homes and businesses have continued, though rising prices have created some pressure.

But the situation in Europe is far worse. Much of Western Europe, dependent on gas supplies from the East, faces serious questions about how it will get through the winter. In Germany, Google searches for “firewood” have risen sharply. Even the French, with their heavy reliance on nuclear power, now face very high prices and serious shortages; they did not invest enough in the maintenance of their nuclear power system.

Germany still seems to be shutting down its remaining nuclear power plants. It is hard to regard European energy policy as anything other than a huge unforced error. Keep in mind that energy supplies are far more important than their percentage of GDP might suggest. Energy is the lifeblood of modern civilization.

The price of energy shows just how bad the European situation is, and winter is still months away. Germany right now is paying about 600 euros per MWh for electricity; as recently as 2020, a price of 100 euros would have been considered very high.

And it’s not just the high prices. The stress about the future availability of energy belies one of the fundamental motivations behind the social welfare state: to make a citizenry feel secure and taken care of.

Geopolitics have added to these problems. It seems unlikely that Russia will move militarily against the major nations of Western Europe. Still, there is the risk of a nuclear accident in Ukraine, the possible outbreak of a war in the Balkans, and a modest chance of the conflict embroiling the Baltic nations of NATO, risking a much larger escalation. It is hard to predict such matters — and that’s partly the point. There is no comparable geopolitical nervousness facing the US, and it is not clear when the European risks will go away, if ever.

A traditional trump card for Western Europe has been the quality of its health-care systems. But the boasting here is not nearly as justified as it used to be.

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