Or rather why Europe pays so bad.
I wonder whats the reason behind many american companies being able to pay 200-400kusd a year while its hard to get past 100k usd in the richer countries of Europe (Germany, Scandinavia, UK, etc.). A junior in USA gets more than a senior in Europe. And after 10 years the american may get 2-4x the salary of the european counterpart. In contrast life in USA is often even cheaper.
- Are european companies greedy?
- Are european companies less competitive?
- Are the high taxes and equality in Europe pushing companies to not try harder to reward talent while USA rewards the high performers as they can see the benefits it brings?
I’m not American, but I born and bred in the EU. Please don’t assume wildly :)
I still view it as a value issue: you are looking out for your own good above contributing to society. If everyone does that, it will be utterly impossible for society to actually give back, because you’re depriving society of the taxes it needs to move.
I’d rather contribute to society and the social security net we have. Any society will have people who are unable to work due to disability or sickness, and to me taking care of your weak links is a mark of civilization. We don’t have to leave disabled or injured members of society in the dust to die. We have the means to take care of them, and that’s what taxes are for.
But we kind of lost track of the original question, why the wages are lower in the EU than in the US. In my opinion it’s because with all the social security and insurance it is not necessary and the environment - the society - is providing part of what you get in monetary form in the US.