Duh, magic!

Even though your question is clearly bias and rather offensive, I will try my best to answer.

As we all know, muggles, with their limited abilities, were not able to fully comprehend and accept the extent of magical prowess that exists within the wizarding world. It is because of this that the International Statute of Wizarding Secrecy was enacted in 1692, and the existence of magic was to be hidden from muggles. This almost entirely separated the muggle world from the wizarding world, and as a result, muggles were left to their own devices. Without access to magic, they had to invent new ways to perform tasks that come easily to magical folk. For example, well known house-elf rights advocate Hermione Weasley was born to muggles who worked as dentists. Dentist is the muggle term for a healer who specializes in teeth and gums. Instead of spells and potions, they use primitive tools and medicine to treat patients.

Really, because of the separation of worlds, and the fact that muggles are physically less powerful than wizards, the two cultures cannot be adequately compared. While wizards continued to live comfortably for hundreds of years, muggles strived to survive. Both parties were forced to work with what they had, and for muggles, that was technology. They used machines and nature to support their civilizations, and development took them much longer than wizards. Their reliance on machinery makes their society notably different, though not necessarily inferior, to the wizarding world.

In fact, when it comes to ethnic conflicts, the muggle world is not very different from the wizarding world at all. Parallels can be seen between the persecution of muggle-borns during the Second Wizarding War and the persecution of Jews, a muggle ethnic group, during the muggle World War II.

In the end, it can be reasoned that what muggles lack in magical powers, they make up for in technical know-how, and psychologically, wizards and muggles are on par with each other.