alt Hacker NewsLabour is much more expensive in the USA, and other taxes are very comparable. And the USA is the startup capital of the world.
Labour is much more expensive in the USA, and other taxes are very comparable. And the USA is the startup capital of the world.
Labor cost has many aspects. One big and key difference between the EU and the US is that due to socialist policies in the EU, it is much much harder to fire people when the business takes a downturn. And this is why companies are not that eager to hire as fast as needed because it is very hard for them to downsize.
In the US, this provides the companies with the levers they need to maintain a functioning business in pretty much an instant. In the EU you can't do that.