Todd Henderson Compares Economic Wellbeing in Brazil and the US

[ad_1]

Brazil and the USA could have been more alike, but excessive regulation changed everything

Todd Henderson

October 4, 2024

Gazeta do Povo

The United States and Brazil share many things in common. They are both vast, diverse nations with rich cultural traditions. The US is the most important country in North America; Brazil is the big player in South America. They are similar in size (if we forget about Alaska, as many Americans do) and in range of geographic environments. America enslaved millions of Africans, and Brazil did too. Native inhabitants were displaced north and south of the equator. Both Brazil and America produce everything from agricultural products to sophisticated airplanes.

But when it comes to economic wellbeing, the fortunes of the two nations sharply diverge. If you take all of the economic production in the country in a year and divide it by the population (GDP per capita), the US is about eight times better off. The Brazilian economy produces about $11,000 per person, while the US produces more than $85,000.

And despite starting from a lower level, Brazil is not growing faster than the US. Both economies are expected to grow about three percent this year. At this rate, in twenty years, the average American will produce more than $153,000 per year, compared with less than $20,000 for the typical Brazilian.