On the morning of the 26th, ‘Money Money Season 2 – Hong Joon-ki’s Magnifying Glass on the World Economy’ was released through ‘Chosun Ilbo Money’ and Chosun.com. ‘Money Money Season 2’ is content that looks at economic issues that make money with the country’s top experts. This video was produced in conjunction with Weekly Biz, which covers Chosun Ilbo’s premium management and economics articles. Weekly Biz reporter Hong Jun-ki explained the global economic trends that should not be overlooked in the rapidly changing investment environment under the theme of ‘Rich America, Poor Europe’.
Reporter Hong cited the writings of Ken Fisher, CEO of Fisher Asset Management, who is known as the ‘master of investment’, and analyzed the reasons why Europe, unlike the United States, rapidly lost its driving force for innovation. Reporter Hong said, “The United States has a dynamic corporate environment with various banks, brokers, and investment advisors. However, in Europe, banks still remain the main investment entities, and as a result, it is difficult for European companies to raise funds and it is expensive.” “It takes a lot more,” he said.
The regulatory environment also divided the fates of the United States and Europe. He said, “The United States uses clearly defined terms and indicators, so companies can take risks because they know clear lines,” and “Europe, on the other hand, uses vague terms such as ‘reasonable’ and ‘fair’ and takes a principle-centered approach, resulting in gray areas. “It caused rents and companies became reluctant to take risks,” he said.
It is pointed out that working hours also had an effect. According to OECD data in 2022, the average annual working hours of Americans was 1,811 hours, which was longer than the average of OECD member countries (1,752 hours). However, France only had 1,511 hours and Germany had only 1,341 hours. It is no coincidence that the wealth gap between the United States and Europe is widening because short working hours and the resulting gap in production increase over time.
Reporter Hong said, “There are many concerns that Korea will also become senile like Europe as its long-term growth rate continues to decline,” and added, “Because the U.S. also has gun and drug problems, it may be difficult to conclude which system between the U.S. and Europe is preferable, but the two regions “We need to think about the direction we should move in through the example of ,” he said.
In addition, more detailed information, such as the background to the United States’ ability to maintain innovation momentum, can be found at ‘Chosun Ilbo Money’ and Chosun.com.
➡️To view ‘Hong Jun-ki’s Magnifying Glass on the World Economy’ as a video on portal sites such as Naver, copy and access the following link.
