The US Outgrows All Its Major Peers

Commentary

Never trust experts who criticize the U.S. economy and who have argued for years that it should follow the policies of France, Germany, or Canada.

Statism never works, and France, Germany, Canada, the UK, and Japan are in stagnation, with bloated public sectors that hinder economic growth and excessive regulations and taxes that hurt jobs and investment.

The United States will deliver stronger economic growth than all its major advanced peers in 2025, with inflation, real wage growth, and unemployment figures that also outperform those of countries such as Japan, the UK, Canada, France, and Germany.

In the United States, it is common to read negative comments about the economy from the same mainstream economists who defended the implementation of European-style Keynesian policies. The results are evident. The United States is growing faster and in a healthier way than all its peers that followed Keynesian spending and tax policies.

Official figures indicate that the United States published the fastest economic growth rate among advanced peers for 2025. The economy is growing at 3.8 percent annualized; the International Monetary Fund estimates U.S. real gross domestic product (GDP) growth at 2 percent for 2025, compared with only 0.2 percent for Germany, 0.7 percent for France, 1.1 percent for the UK, 1.2 percent for Canada, and 1.1 percent for Japan. Furthermore, the Federal Reserve Bank of Atlanta expects 3.9 percent annualized growth in the United States for the third quarter.

It is important to highlight the quality of this economic growth. U.S. economic development in 2025 has been driven by strong consumer demand, technological strength, continued investment, and, more importantly, a decline in government spending. In contrast, Japan, Germany, Canada, the UK, and France see weak investment, poor consumption growth, and sluggish external demand, whereas government spending is one of the key factors in “growth.” Big government and high taxes are limiting their growth to less than 1 percent.

The U.S. inflation rate is stable, while Japan and the UK see rising and accelerating figures in their consumer price index.

Annual U.S. inflation settled at 3 percent in September and is expected to ease further in October. However, inflation in the UK remains at 3.8 percent, the highest rate in 13 months. In Japan, consumer prices have risen to the highest level in a year and are expected to accelerate into 2026, according to Bloomberg Economics.​ While the United States sees inflation stability and Truflation figures show an annualized rate of 2.25 percent, both the UK and Japan are suffering from rising inflation and economic stagnation.​

The U.S. labor market remains strong and is showing real wage growth, considering the reduction in government and immigration jobs. Federal employment in the United States has declined through 2025, with government jobs dropping by 97,000 since January, but the average monthly increase in private sector jobs remains positive. Compared with its European peers and Japan, the United States registers lower unemployment and a healthier mix of private sector job growth. Understanding the significant impact of lower immigration and fewer government jobs is essential to analyzing the U.S. labor market strength correctly.

U.S. real wage growth in 2025, at 1.5 percent, is almost double that of France, Germany, and the UK and much higher than that of Japan, where the figure is negative.

If we compare U.S. employment, real wage growth, inflation, and GDP growth with Canada’s numbers, the differences are striking. Government interventionism, massive regulation, high taxes, and a misguided immigration policy have led to stagnation and job losses in Canada. Canada’s unemployment rate is twice the U.S. rate and its growth is less than half that of the United States.

The combination of strong U.S. GDP growth, improved inflation control, and strong domestic private labor market performance, which has reduced government spending and immigration jobs, puts the United States significantly ahead of all its peers. This proves that supply-side measures, tax reductions, and deregulation, as well as a reduction in government spending, drive economic growth and prosperity, while big government and high taxes bring only stagnation and a debt crisis.

Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.