A country doesn’t have to announce that it’s becoming socialist. It can simply keep promising its citizens more government benefits, more programs, shorter workweeks, and fewer financial responsibilities.

It sounds wonderful. But eventually somebody has to pay for those promises.

And that’s where we need to look at Europe.

According to International Monetary Fund figures for 2025, for every $100 their economies produce, Finland’s government spends $57.50, France spends $57.20, Belgium $54.20, Italy $51.20, Germany $50.10, Sweden $48.90, and the United Kingdom $43.50.

America spends approximately $37.60 for every $100 of GDP.

These numbers don’t represent taxes taken directly from workers’ paychecks. They show how large government expenditure is compared with the economy producing the wealth.

Now look at what’s happening in several of those European countries.

France is struggling with slow economic growth, rising government debt, and business failures. Germany has experienced years of economic stagnation, declining industrial competitiveness, and weak private investment. Italy continues to struggle with low productivity, enormous public debt, and pressure on household purchasing power.

Why is this important?

Because an economy doesn’t survive on government promises. It needs people producing goods, earning wages, opening businesses, and spending money.

Think about an ordinary working family.

After paying taxes, housing, electricity, groceries, transportation, and other necessities, how much money is left?

That’s the money that helps keep the private economy moving.

It’s the money spent on a new car, motorcycle, television, furniture, a family vacation, or dinner at a local restaurant.

When families cannot afford those purchases, businesses suffer.

Car dealerships sell fewer vehicles. Furniture stores lose customers. Manufacturers reduce production. Small businesses struggle to cover their expenses.

Eventually, some close.

And when businesses close, employees lose their jobs.

Now comes the dangerous economic cycle.

People who once supported themselves may need government assistance.

Government spending pressures increase while the economy struggles to generate additional revenue.

If those commitments are financed through higher taxes or growing debt, businesses and working families may face even greater pressure.

That can weaken investment, hiring, and consumer spending.

The cycle can repeat itself.

This is the economic inertia America needs to understand.

It is important to recognize that Europe’s difficulties have several causes. High energy prices, aging populations, weak productivity, international competition, and inflation have all contributed. Universal healthcare alone does not explain these problems.

But there’s still a serious question that governments must answer.

What happens when the promises made to citizens grow faster than the economy’s ability to pay for them?

And what happens when government becomes increasingly responsible for supporting people rather than helping create the conditions in which they can support themselves?

America still has the world’s largest economy, producing approximately $30.6 trillion annually.

And according to IMF figures, government spending as a share of America’s GDP declined slightly in 2025, by approximately 0.1 percentage points. Germany, France, and Italy experienced increases in that measurement.

That small American improvement doesn’t mean our economic problems are solved. Government debt remains enormous, and American families also struggle with affordability.

But economic growth deserves recognition, regardless of which political party receives the credit.

This is the machine of capitalism.