economy
Trump was right, Germany was wrong
Ten years ago, President Donald Trump put Europe on notice, telling them the status quo on defense spending was unsustainable — and that America would not continue to shoulder the cost of keeping the European Union safe. Trump was right, but leaders like German Chancellor Olaf Scholz did not want to listen.
TL;DR
- Donald Trump was correct about Europe's unsustainable defense spending, which only became evident after Russia's invasion of Ukraine.
- The author argues that the US also subsidizes European access to life-saving medicines through its disproportionate investment in pharmaceutical R&D.
- European countries, particularly Germany, use price controls to pay less for drugs, effectively leveraging American innovation without contributing equitably.
- This dynamic is compared to past issues with NATO funding, where European nations contributed less to defense.
- The article suggests that the US should expand its trade investigations to include European pharmaceutical "free riding."