Old Money Doesn't Vanish. It Just Works Somewhere Else.
The 'Europeans are poor' narrative ignores what European wages actually buy. It also ignores that a substantial chunk of the money powering US markets comes from Europe. Old money doesn't disappear — it just makes itself work.
Someone shared this: a fast food job in the US pays significantly more than AI developer jobs in France or Germany — which already have higher salaries than most other European countries.
Europeans simply don't notice how poor they become compared to others. Choices have consequences.
First of all, a burger joint worker making that money in California would probably live far away, drive an hour to work, and risk becoming homeless if they had any health problems. They would worry about their children's education — cost and quality both.
Meanwhile, a European earning the same amount could enjoy a happy, comfortable, and secure life, without worrying about healthcare or school, and live anywhere they want in the city.
Then Wall Street joined in. The WSJ ran a piece asking: What happens when Europeans find out how poor they are? The Continent trails far behind U.S. economic output. Politics is bound to catch up sooner or later.
That kind of attack reminded me of something worth looking at.
Foreign investors own roughly 40% of US corporate equity — up sharply over decades. The US is the world's top FDI destination. Europe is a major player: EU companies have around $3.2 trillion invested in the US, supporting millions of American jobs. The UK, Netherlands, Germany, and others are key sources. Many European funds allocate over 40% of their equity holdings to US stocks — for better returns and tech exposure.
And the top holdings of the S&P 500 sit largely with Vanguard, BlackRock, and similar giants.
Guess what? A substantial portion of their money also comes from Europe.
Old money doesn't vanish.
It just makes itself work somewhere else.