When it comes to social issues, America seems to be a country that is always divided – on abortion, guns, healthcare to name a few – but when it comes to the economy, it is pretty united in its belief in social mobility, ambition and the American dream.
As a result, growth has been faster, innovation more relentless and job creation – despite a global pandemic – remarkably resilient. In contrast, Europe is slow to act, more cautious and hamstrung by costly regulation.
The combination of a highly flexible labour market and a spirit of enterprise in the US has helped it drive a faster recovery from the pandemic and turbocharge key sectors, such as tech and energy. Add to that a culture that encourages risk and rewards success, and you begin to see why America has pulled ahead.
America has a fundamental belief that where you start does not define where you end. That ambition isn’t arrogance – it’s fuel. The long-standing cross-party support for the American dream represents a nationwide philosophy that sees economic freedom not as a perk, but as a principle – one that trusts people to build, create and thrive without the state hovering over their shoulder.
In Britain, we don’t speak that language anymore. The UK finds itself awkwardly caught between two models. We’ve left the EU, but we haven’t fully let go of its instincts. We continue to regulate before we innovate, we fear failure more than we reward success, and we too often penalise and are suspicious of entrepreneurs who have the nerve to become successful and wealthy.
Across the wider transatlantic picture, a striking divergence has emerged. In 2008, the US and the EU were economic equals. Today, the US economy is more than 50% larger. That’s not just because of scale – it’s because of speed. America has outpaced Europe in nearly every metric that matters: innovation, productivity, new business creation and energy independence. It has built a startup ecosystem that is globally dominant, supported by deep venture capital markets and a cultural appetite for risk.
Europe, by contrast, is lethargic and bureaucratic. Labour markets remain rigid, particularly in southern Europe, where youth unemployment still lingers above 20%. Productivity growth is anaemic in economies like Germany and France – supposedly the powerhouses of Europe. Many EU countries are grappling with shrinking workforces and aging populations. Extensive GDPR requirements and similar frameworks have created compliance burdens that strangle small businesses.
Here in the UK, we regulate first and ask questions later. We reward caution. We apologise for ambition. We drown potential in process. And while America surges ahead, we are stuck explaining why even Mississippi is wealthier per capita than Britain. That’s not just a statistic. That’s a story. A story about two visions of progress – one powered by conviction, the other weighed down by hesitation.
The US doesn’t get everything right, as can be seen by Donald Trump’s new blanket approach to tariffs. The intent behind them may be political, not economic. Tariffs are easy to communicate: ‘we’re protecting American jobs’. They appeal to voters in key swing states where industries have been in decline for decades. They create the illusion of decisive action – of standing up to the faceless forces of the global market. But the long-term effects are slow erosion, not renewal. Tariffs don’t fix competitiveness – they conceal its absence. We don’t need a carbon copy of this protectionist model, but what we do need is something America hasn’t lost: belief. Belief in people. In risk. In reward. In the idea that if you work hard and take a chance, the system will back you – not block you.
Britain is still rich in potential, and while that may offer a crumb of comfort, it’s outweighed by being poor in permission to act on it. There are 7 million people in the UK today who say they want to start their own business. But instead of encouraging them, our current political environment is pushing them away. This is why we started a new campaign – The Land of Opportunity – to give those people a platform and a voice, and to create our own version of the American dream.
Britain can be the best place in the world to start and grow a business; we just need to remember how to dream again.
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