Paul Krugman wrote twoposts this week arguing that Europe is broadly not falling behind the United States. He argues that the change measured by the Draghi report is mostly due to growth in the technology industry, which has distorted GDP numbers without actually leading to higher standards of living in the United States. We should believe our eyes when we walk around France and walk around Mississippi. Unfortunately, Krugman is wrong. The measures he uses understate European stagnation.