Thibaut Claes

Isn’t this chart really telling? Within just one generation, Poland moved from one of the poorest countries in Europe, devastated by 40 years of socialism, to Europe’s growth champion, with life satisfaction much higher than in other European countries. Is it really surprising that Poles are so happy? Poland has had the fastest growth rate in Europe for decades and still grows fast. There is basically no unemployment, and Poland is one of the safest countries in Europe. So how did Poland get there? 1. Poles remember the socialist poverty and misery and don’t believe the left narratives destroying so many European societies and economies. They understand that one needs to work hard for a better life. 2. Poles are extremely entrepreneurial. While young people in Germany or France choose government “jobs,” many young Poles start a business. The state helps them, it is easy to start and run a business, most government services are digitized, and taxes are reasonable. Poland understands that fair taxes drive progress, innovation, and job creation. It values entrepreneurship and doesn’t punish it with high taxes. 3. Poland protects its borders. Contrary to other countries, it doesn’t allow illegal immigrants to apply for asylum and consequently deports criminals. It doesn’t offer lifelong welfare, people who want to work and contribute are welcome. Those who want to drain society and stay on welfare benefits forever choose the UK or Germany over Poland. 4. EU membership has been a turbocharger. Implementing Western legal standards, fighting corruption, and smart use of EU infrastructure funds helped a lot. Contrary to the naive narrative, it is not a subsidies story though. Many other countries, including some Western European ones, receive higher EU subsidies per capita or as a percentage of GDP. Poland did many things right, the opposite of the destructive left path many European countries follow at the moment. No wonder Poles are happier than others. Yet, two things must be addressed for the Polish success story to continue. First, the demographic problem. Housing in large cities must become more affordable for young people. Immigration and Poles returning from emigration help, but more needs to be done to increase the births rate again. Second, the Polish fiscal deficit is too high, public spending as a percentage of GDP is getting close to 50%. With weak demographics, Poland can no longer afford one of the lowest retirement ages in Europe. Poles are smart, these issues will be fixed. If you have not been to Poland, consider a trip. It’s so refreshing compared to the slow but steady decay of some other European countries.

Isn’t this data point really interesting? The latest PISA math results place East Asian systems far ahead of Europe. These large differences reflect sustained gaps in the cognitive foundations that support high-skill technical and scientific work. That pattern aligns with broader economic trends. Western European economies rank among the lowest in annual working hours in the developed world, while many Asian economies and the United States log substantially more. Europe has produced almost no new global-scale technology companies from scratch in recent decades, trails sharply in private venture capital and AI investment relative to the US, and remains heavily reliant on American platforms and East Asian hardware. The US captures most frontier AI models, compute, and high-growth tech value, China and other Asian economies have scaled manufacturing and applied research aggressively. Europe’s regulatory madness and cautious capital markets hinder scaling even when talent and basic research exist. High living standards are not an entitlement independent of relative productivity, hours worked, or innovation rates. They depend on generating real output and competitive advantage. Heavy reliance on redistribution blunts incentives for those still willing to work long hours, take risks, build companies, and create jobs, the activities that expand the overall pie. Protests and riots do not close skill gaps, attract capital, or produce new technologies. Closing the gap requires raising effective skills, increasing returns to hard work and entrepreneurship, and reducing barriers to firm growth and capital allocation. Without those changes, relative living standards will keep adjusting downward, whether anyone likes the arithmetic or not. Burning historical buildings, looting stores, and torching cars will not make young Europeans more prosperous.