U.S And Europe: Comparing Living Standards

"Another factor is the greater dispersion of America's population in vast, sprawling metropolitan areas with few transport options other than the car. This is partly the result not of private choice but of public policy, such as subsidies to suburban motorways and a starving of public transport, or local zoning laws that limit the minimum size of residential developments. It leads to higher spending on roads and energy, and hence higher GDP. In Europe the convenience of more compact cities and frequent train and bus transport does not count towards GDP figures...Europeans' productivity may have overtaken that of their poor American cousins."

Thanks to Abhijeet Chavan