On "impoverishment": the difference between private sectors in Europe and US are of course important, but I'm referring to a challenge on much lower level.
Lagging country that wants to increase pace, must find resources to invest. The easiest way to find these resources is to squeeze out parts of its population, to decrease consumption and rise investment. This was done historically in the Soviet Union, in Korea, in China. Europe is of course much more prosperous, but I don't think it can escape this logic. I'm not sure if either European politicians and populations are ready to implement such catch-up initiatives that would result in partial dismantling of the welfare state.
Lagging country that wants to increase pace, must find resources to invest. The easiest way to find these resources is to squeeze out parts of its population, to decrease consumption and rise investment. This was done historically in the Soviet Union, in Korea, in China. Europe is of course much more prosperous, but I don't think it can escape this logic. I'm not sure if either European politicians and populations are ready to implement such catch-up initiatives that would result in partial dismantling of the welfare state.