Nobody tells us that Americans are paid at least double what europeans are paid for low end jobs like waitressing and warehousing. For skilled jobs, the sky is the limit. European wages are completed suppressed. But we don't have to worry about retirement or medical, at least not as much. Conclusion, the welfare system is actually corporate welfare. It helps companies alot.
Waitresses make that much because of tips, not because of wages. And tips are one of those things that Europeans not only hate, but look down on American for using. As far as I can tell European workers are much less productive than Americans and actively sabotage any attempts to change this.
@@AJ-zy9jf I can agree on education but not healthcare, you don't know what will happen tomorrow so cheap healthcare is the best thing humanity ever come up with
Please tell me if I'm wrong, but the great decoupling is for me just a sign that we are getting scammed. Productivity increases, inflation increases, and the top 1% is also richer. But our wages and spending capability is in an all time low. I guess the complete answer is way more complex, but I can't help the feeling that the money is just funeling up, to some big fortunes, while's we are getting scammed
Yes I agree with you, look up austerity measures. The only way out is with unions so we can bargain together, something this channel is almost afraid to mention
And as always people living this topic never talk about thr fact the companies paying low wages for higher productivity are raking in large profits. Which is essentially just taking money from everyone else
Well, in my understanding the main issue is taxation to a point where regular people just can’t put one penny aside, the second I believe it is excess of bureaucracy, to sum up shortly there is no way you could get successful when the system makes sure to bend you at every turn you make daily in your life. If you have doubts take a look closer at national priorities in each country across the EU.
Well, in my understanding the main issue is taxation to a point where regular people just can’t put one penny aside, the second I believe it is excess of bureaucracy, to sum up shortly there is no way you could get successful when the system makes sure to bend you at every turn you make daily in your life. If you have doubts take a look closer at national priorities in each country across the EU.
Europeans don't consume enough.. yeah no sht. If your wage is 2300 after tax and an iPhone cost around 1600euros with VAT you think twice before buying that iPhone or TV,pc , car etc...
What? 2300 after tax? I'm an engineer and I make much much less in Italy 😂😂 2300 would be a good wage actually. Then guy buy a cheaper phone 🤦♂️ I got mine a few years ago for 150 euros.
@@bamaramify I mean, there are many problems, but landlords are one of them. At least as they are right now. Landlords do not contribute to a region's prosperity, yet are the biggest profiteers. When a company releases a new product that is better than the product of competitors, they can increase the prices because the demand for their superior product rises, but in housing it is different. Politics, industry or social changes make a region better than a "competing" region, so intuitively these should be able to increase their "prices". Instead, landlords do. They don't even have to increase quality of their product, because they know that the supply is rare. And because developments in regions take a long time, investors can foresee these changes and buy all houses while they are cheap(er). And I didn't even mention induced scarcity for housing... Or as a more general critique to the social group of investors: The way they earn money is by owning something. They do not contribute to society in a productive way. And to make matters worse, they do not contribute to the market the way the working class does, because they hoard their wealth instead of spending it. Essentially, they take money out of circulation. I know, these are very simplified approaches, nonetheless they show the general problems that are caused by housing investors and wealth hoarders.
1. our population can't afford the stuff we produce because the wages are too low 2. increase exports to sell the stuff our population can't afford 3. lower wages to make our exports more competitive 4. back to 1. Great economic model!
well who cares, its all mass produced by cheap labour in China anyway. The kicker is they want to re-sell it to their own countries for a big mark up. Does not work when there is inflation.
@@dzonikg hey Serbian compatriot, those who will work for low wages are not very educated and productive either and in most cases they will not want to stay or will not want to work or their kids would still not be incorporated into society (which is not only to blame them but bad and discriminatory pre-school and school system in most of western countries that ensures class reproduction meaning kids from poor parent will stay poor, from low educated will stay low educated)
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
With $420,000 in retirement savings, diversifying into assets that historically perform well during inflationary periods, such as Treasury Inflation-Protected Securities (TIPS), commodities, or foreign currency assets, might help protect against potential dollar depreciation. Exploring options like global real estate, diversified foreign bonds, or high-quality international equities may also offer a hedge against a declining dollar and inflationary risks .
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Thanks, I looked her up on Google and was very impressed by her credentials. I reached out because I need all the help I can get. I've scheduled a phone call with her.
Title: Why are EU wages so low Video: So, why is this? Well, this will require a whole other video 😂😅 So, this video was a waste of time. I thought this was THE video about it as the title suggests 🤷♂️ Your videos really are getting worse...
Ah yes why not expect a small news org to explain a problem that multiple nations are facing where even top end economists argue about cause and solution without a real answer.
Europe at some point in the last 20 years thought the recipe for economic growth ist to compete with the world in low poductivity low wage Jobs. Even now this seems to still be the tactic. Why anybody thinks, especially in light of the demographic issues, this was ever a good idea, is beyond me. Europe needs to strengthen internal demand, even if that means reducing their Exports (oh no, Shareholder at VW won't make as much money)
Why does Europe need to create an overconsumption problem. Europeans consume enough, infact maybe too much. If Europe has excess productive capacity, it should export. More demand in a developed country is not a good thing for the world, and ultimately even for the country itself, as bubbles will pop eventually and hurt everyone but the big business owners. The problem with European wages is due to weakened unions and workers rights, disguised in the language of "Labour Market Flexibility"
@@adamo1242 european wages are to low compared to Productivity. This is inefficient. Germany has for a long time exported meat. There is no economicaly sound reason for why germany, one of the most productive countries on the planet would export something like meat. This is only because of artifically low wages. Now it is a recipe for disaster, beacuse europe due to high enery prices and bad Business decisions (to low private and Public investment) can no longer compete. Europe needs to start fiscal acceleration.
The graphs at 2:15 say that _wages_ increased by 175%, while _productivity_ only increased by 54% (you state the opposite). Maybe the labeling is wrong?
The thing is that richer people and companies are getting better and better at retaining money and using loopholes. So there is even less money going around to even less people.
I have lived in the US my entire life but I have traveled to Europe several times and I work for a company based in Europe. Regarding to this topic, I noticed three things. 1) Like you said, Americans spend a lot more than Europeans and one BIG place we spend is on Housing - often new housing. As I have gotten older, I have more income and I have spent a lot of that one having a nicer house. Another factor is medical which we pay for ourselves and that keeps increasing requiring higher wages. 2) Americans are a LOT more mobile. For my last job change, I moved 3.000 miles (4,800 Km). Super easy for me but crazy difficult for a European. That means several things 1) There are A LOT of job opportunities 2) When I change, the company usually has to offer me more money 3) I get a newer more expensive house This mobility also means that if I have a life change (like a family) I could easily move from the city to the country so I could get more space. Also, all this space means more room to build new and more expensive houses. 3) From what I have seen, Americans work way more hours than Europeans do and get way less days off. That is OK and at times I am jealous but it is still a factor.
As we say: In Europe you work to live, in America you live to work. Being wealthy isn't the be all end all as long as you can afford a decent standard of living.
All of this is noise on the simple fact that companies are making record profits and none of this is beings passed down to workers. The myth of trickle down.
@@mzo.7333 tricke down includes way more then that. Lower taxes? Low interest rates? A good business environment? A healthy economy? To quote JFK, "A country can't tax its way into prosperity. " Regulations are killing the European economy. As they play the green net zero bullshit making the middle class hurt with high cost of living because of the green energy scam while the rest of the world like China are polluting on a grand scale is garbage. Why won't they stop China? $$. California working class have to pay $8 for fuel while the impact of that is nothing on a world scale.
I never understood arguments like yours... I'd blame the bureaucracy, high taxes and quantitative easing and low interest rates instead. You'll always get record profits because of inflation. Companies were and are always greedy
"Average wages" is an inferior metric compared to median wages since ultra-high wage earners skew the data higher than most people actually earn. Always use the median wage when comparing wages, not the average wage.
The fact that they went from blaming us for spending too much on coffee to blaming us for saving up too much means I require zero permission to stop listening to economists and politicians, and every right to call them empty mouthpieces. They're not just destructive, but rather, its clear that they aren't even listening to the shit that falls out of there own mouths, so why the ACTUAL FUCK SHOULD WE!?
They say :Poor people shouldn’t have kids Same people: birth rates are declining make babies peasants Nobody wants to work in the same vein people are getting layoff Ai Will save us from low birth rates but we still need workers We need to decouple from the USA, take not measure to do it Europe has a immigration problem but employers still want cheap immigrant labor 🤦♂️ They don’t know what they want anymore.
It isn't the same people saying these two things. Economists aren't saying coffee/avocado is affecting rates of house ownership rates. It's the daily mail and similar. They might both be older and wealthier than us, but we don't need to stick them both in the same bucket.
As a American. The only way you got a good raise was to find another job. My boss would never give me the raise I wanted, so i left. I switched jobs 2 times.
For a lot of people in Europe that doesn’t usually work only by emigrating to another European country with a bigger economy, I guess similar to someone from ohio going to California or nyc I guess , you get higher salary worse qol but you save then you move back home if you don’t mind the pay cut. This is a generalization so doesn’t apply to every jobs or European country
@@flashsentry1791 Well if you live close to the border yes. For instance as a French I know some people work in Switzerland, have their wages which are amongst the highest in the world and live in France paying French prices. This is one of the best situation possible
Life of Czech person, well everything is now 30% more expensive here in Czechia, can we get 30% increased wages? Companies: "Sorry dude I don't speak bigger wages"
The reason why Belgium saw a 2,9% increase in wages is because we have something referred to as "Indexation". When inflation goes up our wages, social security benefits and pensions are mandated by law to go up as well to keep up with inflation and maintain our standard of living. It's a pretty great system that benefits all layers of society, so naturally the neo liberal parties and the employer confederations want to get rid of it.
I think with this system you can really quickly get into an inflation spiral, where as inflation increases the wages increase even more and so on… I don’t know how it works in Belgium I’m just sayin this is the reason a lot of countries don’t want to implement systems like this :D
@@fexi200 Yeah, cause everybody is brainwashed to follow wathever the neo liberals say. But the prices hikes on a lot of products including rent are capped per year. So they can only rise a certain percent per year. Works well for working people , CEO's, landlords and major corporations off course hate it.
It's a great idea in principal, but in typical Belgian fashion they've actually applied it badly. Mandating everybody's compensation to increase by a certain rate (e.g. I think it was 11.6% at beginning of 2023 due to the crazy inflation in 2022) sounds wonderful in theory, but that 11.6% gets applied to someone's compensation regardless whether their salary was €30K per year or over €100K per year...so those on the highest salaries benefit far more than those on lower salaries, which not only goes against the whole principal of this indexation, but it quickly becomes an unsustainable cost increase for many businesses which already have tight margins. The long-term impacts in Belgium are still to be determined but anecdotally I know lots of firms have begun cost-cutting as a result of it. Indexation can only really work if it's tied to the minimum wage or something and everyone's salary increases by the same fixed amount rather than a fixed %.
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
It has never been simpler to grasp how to expand your wealth than it is right now, thanks to the availability of competent portfolio advisors that can help you experience and learn about a market with a wide range of assets. I think it's impossible to predict how changing dollar values will affect assets.
Having an investment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
Melissa Terri Swayne is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
i think the issue is not _"why are European wages so low?",_ the issue should be _"why are North American wages so inflated ?"_ my salary in the Netherlands was AWESOME, but still half the salary an average American would receive. Sure, the main issue is that the "wage" alone is just one number, you have to factor other working beneficts, such as vacation and sick days, healtcare, public transport, job stability, work-life-balance, etc... which the European market clearly excel at. Edit: I am Brazilian, but lived in the Netherlands for ~7 years between 2016 and 2022. So this is a 3rd party view between the US and Europe
I feel like "less dysfunctional than America" is really not the goal you want to be aiming at. European wages gave fallen in real terms, and this is bad for Europeans regardless of what is happening across the Atlantic.
But your welfare state is a Ponzi scheme that is unsustainable and I don't think in 20 years time, you will bragging about how you have all those "free" stuff when the population ages even more and young people have to pay more and more taxes just to accommodate an aging population.
North American wages are not so "inflated" they're just straight up higher. Europe has higher prices and higher inflation every year. For example fuel is way more expensive and it's used everywhere
It's crazy how many people fail to take into account the cost of living when comparing wages. Average wages in my home country are quite a bit higher than in the country where I live right now, but I am able to have a far higher standard of living with a lower wage due to also having lower cost of living. If you just chase the high pay check, you might often just end up spending all of it for necessities and not being left with much more extra, than you would if you accepted a lower paying position in a country with lower cost of living.
GDP measures spending, not productivity. For example, burning lots of fuel or buying a new phone every year increases spending without necessarily improving productivity. If a country produces items designed to last 10 years, with just a few minor repairs, their productivity is effectively higher compared to an economy where similar items are replaced every 3 years. I hope Europe moves toward durable products and lower resource consumption - aiming for a lifestyle that’s pleasant yet sustainable. Comfortable, but balanced.
NoOooO the GDP MUST rise, or you WILL be unhappy! Buy a new car and a new phone NOW because both have TWO more AI CORES than last year's models! BRUHH technology is AWESOME!
@@kevinflummi2822 I'm a consumer - I own a PS5 and plan to get a PS6, but I don’t feel the need for a PS5 Pro. I used to have a Xiaomi Redmi 8 Pro, now I have a Xiaomi Redmi 12 Pro, and my next phone will likely be the Xiaomi Redmi 16 Pro, once the 17 is well-established on the market. My son now uses my previous phone. He had the option to buy a new one, but he chose to save his money and use my old phone (restored to factory settings and running like new).
that's the thing i hate about these kinds of video's. they always make it seem like the situation is bad, to get more clicks. but in reality it's just that one place in doing it differently than the other one. for example (a few of) the differences between the US en Europe, and why wages and GDP seem so unequal compared between the two: US: you get a big paycheck but you have to pay for everything yourself, healthcare, a car, higher food prices etc. Europe: you get a smaller paycheck but taxes have already covered everything and the infrastructure is in decent > good condition thanks to these taxes. US: massive GDP, but that is thanks to the always buying more, more, more. the massive healthcare debt, student debt, year on year government deficit etc. so that high GDP is based of spending of money the state and the people doesn't have. Europe: lower GDP, but that doesn't mean much. it's in a big part because people and governments spend their money wiser and don't keep buying the newest stuff. or build cities that need massive maintenance budgets the US is a big house of cards, and when the $ loses it's position in the world it will all come crashing down. that is if the ongoing polarization hasn't brought the US Civil War: part II along before that. the always keeping GDP growing won't and can't go on, and the sooner we start to shift to another the better, for the people and the planet. these videos are just to pamper to some viewers, make them feel better about their situation and not question their situation. and to get more clicks so they earn more money. but in the end the video is worth nothing.
@@ChristiaanHW US has much more advanced technology than the EU, which leads through economic dominance of multiple multinational companies. Plus, dollar is still reserve currency and is backed by the American military. Stop this Euro cope. The US would still have a higher gdp than the EU even if consumer spending drastically reduced.
Wages say nothing. Spendable income is what counts. You can easily subtract $50.000 from American incomes in comparison to European ones, because the immensely higher fixed costs they have. For instance: -Making $60.000 in California you are on the brink of being a homeless bum, whereas in Europe you would be living the good life with a nice house, car and going on vacation twice a year. -Watch some vlogs from Americans that moved to Europe and compared what their fixed costs where in the States to where they live now, it's always $4.000 - $5.000 less a month that they save on rent, utilities, heath insurance, groceries, Internet, phone plans, transportation etc.
You may be surprise to know that not only America is not just California, but not all of California is San Fransisco and Los Angeles. I live Tennessee and easily get by on $36.000 a year while making well over $100.000 a year.
It’s hilarious that you used California as your example. 99% of Americans have lower housing costs than there. Americans have less taxes, lower cost of living, and cheaper goods and services than Europeans. We also have higher wages on average. That means we have vastly more money at the end of the day than European people. I guess that’s why our country has a GDP like your whole continent
I love the way the decoupling of wages and productivity is treated like a natural or unknowable phenomenon, not intentional and open greed by the Capital class. Plenty of data on where all the productivity since the 80s has gone
Productivity decoupling has a simple cause - inequality. A small number are getting extremely rich off the backs of productivity improvements, and are also less likely to invest in productivity because they can get rich by doing nothing, and workers arent pushing for productivity growth because they know it doesnt help them.
That depends on inflation and corporate tax rate. Low inflation or worse deinflation means it's better to invest less or not at all. CTR if higher means it's better to reinvest in your own company meanwhile a lower CTR means it's better to invest into the creation of new businesses or even industries.
POV: relative wages steadily falling since the 70s compared to average household expenses, house prices exploding... Politicians and economists: "Why don't people buy more stuff or want to have more children? 😑
What's the source on relative wages falling since the 70s? Cause I know for sure that's not the case for most of Europe, Just in Germany they've stayed relatively the same since 2000 and with both economic crashes and nominal wages are still increasing because of bargaining power.
What do wages have to do with children? Based on that the poorest people would have none and the richest would have many. I mean, one could argue that the poor do not have adequate access to birth controls, and that is why they still have children. But do not the wealthy people not have many more children that the people or middle class? You seem to be suggesting that affordability is the key to birthrates.
@@alexanderd6793 Wages going down are what most Germans talk. By their story things went wrong when DEM -> EUR converted, then when crisis 2007. hit and the rest started with COVID and Ukraine... I am living in Germany since 2016 but was visiting Berlin in 2012. It is noticeable fall: back then all taxis were Mercedes. Now Mercedes in nowhere to be seen. If you see it, it is some 10+ old model driven by some Auslander from countries where Mercedes name is still a symbol of success. If I take a time machine and go back 20 years and tell Germans that they will see in the future more Dacias on the streets than Audi even in Munich they would think I am crazy. Not long ago people from Balkans would come to work, now most of them are thinking of going back. Specially people from Romania and Croatia. Some of them already went back, good working people with whole families. My son's best friend from primary school was taken to Bosnia, his parents decided to go back after more than 10 years living and working.
As far as I remember from other US vs EU videos, prices for rent and food is also lower than in the US. And don't even start with healthcare. Just comparing wages via exchange rates don't show the whole picture.
@@panter82 Ask those 60& of American who work paycheck to paycheck. Or those who are homeless and have to sleep in their car despite having a job. The "real wages" (those who take cost of living into account) are certainly higher in the US for a part of the population, but for the bottom half? I have doubts.
@@mrm7058 This. I have a really hard time accepting that people making around minimum wage are better of in the US than the EU. There's no way a MCDonalds cashier is better of in the US.
Why is Europe falling further and further behind while the US is getting further and further ahead? Here is why: People like my dad give up over 60% of his salary each month. All this money is wasted on stuff he never wanted and has no say in. We are pathetic in Europe. We are so obsessed with socialist policies... we are killing our own continent in the process - again
There is a surplus of labour due to globalisation. They have exported as many jobs as they can, and then for everything else they imported people to do it. And then on top of that the huge bureaucracy regulated everything, and gave you so much job security, that it is extremely difficult, and unnecessary to innovate.
I’m Dutch, from the Netherlands. Wages in the Netherlands are relatively low, especially compared to the US (huge difference!). Here are three reasons why: 1. Stingy Employers: Many Dutch employers are hesitant to invest heavily in talent. Some companies prefer hiring “average” employees because they are cheaper and can still perform well enough to meet the job’s requirements. Btw, it is even worse in some other European countries. 2. Strict Labor Regulations: The Netherlands has many rules and regulations that favor employees, offering strong protections and benefits. It is a good thing, however, these benefits come at a cost: employers face significant risks when hiring new staff, which often translates to lower wages for employees. 3. Lack of High-Growth Companies: Unlike the US, the Netherlands (and most European countries) lack large, rapidly growing companies in sectors like fintech, AI, and e-commerce. Without these high-revenue corporations, there is less opportunity for the high salaries they typically bring. No big corporates, no big money.
@@Globe_Glider In 1971 you would have flunked grade school by writing "wouldn't of", whereas today that will see you through university, so there is also that. 🤔
@@mikicerise6250 most people don't write formally on the internet and anyways what use is your perfect grammar if your unable to understand how your being robbed 😂😂, 1971 is the cause of all this but most are too dumb to understand.
American here. A joke with management was if you don’t want to get it done, you’ll send the job to London. 😂 Their reputation is getting the minimum done weeks late.
People say income tax is the main issue, it's a contributing factor but not the main issue, as it's money that at least gets used on infrastructure. Europe has a problem with insane proportions of income going to rent. A Georgist system where rents are forced to be low due to market forces via a land value tax, combined with drastic cuts in income tax are the only way we will see growth.
yeah, nothing wrong with taxes, as long as they get used in a good way. if you're able to see where your taxes go and enjoy safe infrastructure, good schools, good electricity (no outages) etc you should be happy about paying those taxes. the people against taxes don't understand what they would have to care for themselves if taxes where lower or even gone.
@@ChristiaanHW problem is the EU is more of a transfer Union. Rich countries are forced to bail out the corrupt/weaker south. Also EU bureaucracy and rule making is absurd.
So many words are used to mask a simple truth: companies and investment funds have become excessively greedy, prioritizing profits at the expense of fair wages. This relentless pursuit of higher returns is eroding the middle class, forcing workers to meet ever-increasing demands without corresponding compensation.
Yes, I completely agree. Hedge funds have WAY too much power. From owning basically everything to controlling politicians and keeping people hostage because by their retirement money. New world order doesn't sound so c0nspiracy theory anymore, eh?..
Because in EU your wage is the money remaining once your boss paid all the social heath care / retirement / unemployement. In France your boss spends 8 K to give you a 4 k wage
@@RAPHAEL-di8hz that good old fat state pension for your greedy pensioners and their healthcare. Quite wild that your country wants to DECREASE state pension age back to 60. Do the French pensioners just hate young people?
@@inbb510 Pensioners are former 1960/70's communists students, they spent all their life trying to get the maximum from the state hoping the system will hold until they die, it is just normal in France
That is not the reason because even for side jobs like waiter at a restaurant the hourly salary is way too low although the social stuff is already paid by the main job. I saw people in the US getting $50/hr for a job that is paid 13€/hr here.
@@patriayvida6850 , That's just copium. Aging population + low fertility rates + welfare state = high taxes for younger people + collapsing public services. To deny this (especially with France where they spend SIXTEEN PERCENT OF THEIR TOTAL GDP ON JUST PENSIONS ALONE) is just delusional. And yes, it is the greedy poor people's fault as they are stifling innovation by demanding that money goes into their bloated pensions instead of giving young people the economic environment to thrive through innovation.
Weird tho, wages for many in Brussels (not talking eu institutions folks) are way higher than in London, especially if you’re one of the many Londoners not working in law or finance. And then there’s the cost of living in London
Dunno man, I've bought my house for 200K EUR brand new. Can you do that in the US? Private tuition for my daughter is 300 USD a month. How is it in the US? Oh yes, of course I can not buy a new SUV and the newest iPhone as soon as they come out but I DON'T NEED THAT SHIT.
If I got more than 32k€ yearly in Poland, the surplus is taxed 41% (32 tax + 9 health insurance with no damn cap). It is not worth the effort and I prefer to go to park or play a game instead of going above and beyond in my job.
High taxes and a lack of flexibility in attracting external capital - that’s the issue. I’ve been waiting five months for a work permit in Spain, even though I already have a profitable business. Economic sustainability doesn’t seem to be a priority for the government, and I see many people choosing to leave for Asia, where starting and running a business is far easier. On top of that, if you’re working on your own, just to hold ‘autónomo’ status you need to pay 300 euros every month, plus about 80 euros for an accountant - that’s 380 euros monthly. Add roughly 20% income tax and 21% VAT, and it’s no wonder people feel frustrated. Honestly, I’m really fed up with the situation here and the government’s approach.
VAT is paid by the customer, no? IF the products that you buy and used are part of the final product then you don't really pay the VAT, you transfer it onto the product, is that not the case? Cause it's one of the things I've seen here in Bulgaria. Yeah, just checked it and it's called "deducting VAT" that comes off of the customer's payment when they finally get the product
@ yeah, I mean it makes your product more expensive, not every customer is willing to pay that, especially considering their wages. If fact most of Spaniard just avoid paying for stuff altogether, sharing things within communities
Croatia curently has a problem where the avarage yearly income is around 12 000€, the prices of food and goods are higher than in Germany, England, France and other EU nations...
Europe is too obsessed with having an old school export led economy. It just pushes the workers to have low wages to keep our goods competitive for old dying industries. We should look at service and consumption led economies like the U.S. for lessons
Not really, Europe is already mostly services. There are holdouts like Czechia or Germany, which still have heavily industrial economy, but those are exceptions
At least in Germany, the taxes simply are too high. And not just taxes but several payments every citizen has to make that goes into government funds. Lower income tax as step one of 100.
@@khaoscero nope. It's just 2% lower gross. How do I know? Because I've worked on both continents. Therefore I know that me paying that extra 2% more in taxes in the EU is WELL worth it since my standard of living has increased 10x since moving to the EU almost 10 years ago. Call me crazy, but it's kind of nice when my taxes go mostly into things like healthcare, infrastructure, and education and NOT to military.
Compare not the absolute productivity, but the relative productivity compared to cheaper labor markets given globalization, the productivity of third world labor has gone up so much that the wages adjusted for productivity relative to the wages compared to productivity in developing markets are still too high.
Everything goes back to housing. Your house is too expensive, so you spend less money. That means companies have to raise prices to make up for lost demand. That means less people can buy, meaning they have to further raise prices or lay people off. Those laid off people also have expensive houses. It's also true that, when those housing and food costs rise, employees at other companies will demand more money to afford to live in the area, causing further price increases. The most expensive input in almost any company is labor, and the overwhelming reason behind this is so people can afford housing. So, BUILD MORE HOUSES ALREADY. NOT THAT HARD.
It's not just the lack of housebuilding. It's also the fact that the rich are not taxed as much as they used to be. They use their extra money to buy assets like property, which inflates the price beyond what the vast majority of people can afford. They then charge those who can't afford to buy these assets as much rent as they can get away with, which sucks money out of the economy. The rich get to own more, the rest of us get to own less. Nowadays 'the rest of us' includes even quite well paid sections of the middle class who aren't fortunate enough to have inherited wealth.
@@moomie1634 I disagree. Houses are expensive in Paris, London and Zürich, where you get high salary. Houses are cheap in many places in e.g. eastern Europe. But salaries are shit, so people leave and flock to high income cities. What's the point of building a megacity, if it will just become an atrocity of commute? Perhaps we should instead address the problem of lack of well paid work in places where there are ample vacant buildings?
@@ArgumentumAdHominem What? That's not at all the argument. People move where the jobs are. You can't just pick up industries and move them. They need educational centers, government support, and a baseline of people willing to be there. Your argument on housing just ignores the fact that you can build up. You realize that you can, in fact, place a house on top of another house, right? It's called a condo, and many cities have them. You also have duplexes, triplexes, and quadplexes. The problem is that cities have blocked building almost anything, and the only things that do get built are single family detached, which are the most inefficient uses of land within cities. There's also this thing called commuter rail, which, when built, is significantly faster and more efficient for getting people into cities than cars could ever be, and can easily cut commute times from far out places. This isn't that hard. Developers know how to build things, and they've been pleading with cities to let them build something, while being blocked time after time after time.
I always wonder why people in west europe or USA rent so much or buy house.WHere does houses or appratments off your grandparents go ,why they did not left to you when they died,they for sure dont live forever
@@dzonikg the top percent just buy up all of them. Older people are also living longer, so their houses aren't going on the market. It's mostly that a small percent of the population owns a ton of houses, so when they die, they just pass down all that wealth to another small portion of the population. In a perfect economy, developers would just outbuild this demand, which would perfectly allow for a balance of supply and demand, but cities block that development, meaning demand far outstrips supply, causing issues
Hello from Spain. If you couple workers wages with direct and indirect taxes it becomes very clear that productivity is punished. There is a point where the moré you win the moré you until you only work to pay taxes. We only feed the Machine not our families😢
I’m from Portugal people say we work almost half the year to pay taxes but I also hear similar points from the USA so idk if taxes are really the problem although it probably has some impact. In the case of my country I know our problems and is mostly because what we produce aka low margins products. most business owners don’t like to modernize,improve,change. Laws are just suggestions most of the time. Everyone wants to up each other on bs topic instead of cooperating. Employees are like a burden and hours worked is more valuable than more work done. Big companies have monopolies/oligopolies over the country,small to medium company don’t want to improve unless the eu pays for it. Since we attracted tourists,expat investors thru real estate, digital nomads paying less taxes than locals although they discount higher amounts, mass immigration where most work minimum wage for those that talk our language and gig work for those that don’t with a excuse of our people not wanting to work. So older people retired pr are waiting for it and young people emigrate to Switzerland,Benelux for example. I know Spain problems are similar to us but your market is bigger just like Italy
@@MsCharlieTramp Maybe, but what about VAT? VAT in Europe is among highest in the world. I pay 23% VAT. Plus we have most expensive electricity in the world which raises the cost of basically everything…
Yes socialism is when the working class is taxed 40-50% and corporations never pay their fair share (in fact literally 0 taxes). Well done! That is definitely socialism, not neoliberalism. 👏🏻
try to sell cheaper goods abroad - lower your revenues - lower your workers' wages - they have no money to buy goods - you have to sell more abroad... What a beautiful vicious cycle.
The cost of living is generally lower than in the U.S. However, keep in mind that Europeans often pay higher taxes, which help fund benefits like free healthcare, retirement funds, education, and generous unemployment support. European cities are also well-connected, with efficient public transportation, so people often don’t need to own cars or pay for gas. Additionally, even though wages are generally lower in European countries, they enjoy a higher quality of life and report being much happier than the average American. Benefits like 30 days of paid vacation, maternity and paternity leave, and medical leave contribute significantly to this quality of life.
Public welfare programs like Free healthcare and public pension funds are not sustainable in long term if you have low wages, high taxes and low birth rate all at the same time. I am a non-Eu doctor. Germany is practically laying red carpet for people like me due to the severe shortage of healthcare staff. But I would be out of my mind to spend 1-2 years of my life learning German language only to get paid 1/2 compared to Canada, 1/3 compared to Australia and 1/4 compared to U.S while paying double the taxes and quadruple energy bills. I know more German doctors working in U.S than German doctors in Germany. If you can’t fill the healthcare jobs either internally or externally, your “free” healthcare system won’t last long.
@@santostv. You'd be surprised how in my Country we have US/UK prices for goods and yet don't even make 2k a month. Not to mention that something like Iphones are EVEN more expensive here and the food prices are basically the same as US. You can definitely find products that cost the same as US and maybe even higher quite often
The title is misleading. Yes inflation had negative effect on our purchasing power but the wages are not "so low". Grouping all European countries together is nonsense as well. There are wild differences on how different economies dealt with pandemic. If you want real answer to this problem, EU has to prevent US companies buying out the competition in all the industries. I don't think this causes major differences between normal people in average positions but it skews numbers at the top end because of profits centralized in US.
I'm in my late 20s and I've never had a 'good' job. I guess good managers + good work planning + good working hours + good salary is a fairy tale thing.
You forget the rich can easily move and hide money and investment that's also an issue, even though they make money off service consumption within Europe and UK.
No innovation? We are top ranked in innovation. No tech industry? My 10 million population country have more video games then entire US. Where do you get these statistics.
Europe was often in a state of stagnation before the wars; it feels like this cycle is starting all over again. Be one of the richest continents, take a hit, then have people finally turn their minds to regaining that comfortable life they once had.
It's like raising the tax on alcohol to reduce consumption and make people healthier but expecting people to drink the same amount so the government gets more money and then having a deficient budget when people drink less.
Consumption taxes are actually a good thing. You see, only what you consume gets taxed, and the rest, things that you save or invest into some funds, bonds or stocks are not, but the money returns into economy anyway. And if you need to throttle your taxation for one reason or another, you can simply cut on spending to a point. This doesn't happen with income taxes, so I'd rather see them go and double the VAT if need be.
@@ronald3836 Except you can export production, that doesn't get realized in the local market. The reason consumption taxes are better is, that you are in control of your taxation, so if you chose to save, for instance, because you're expecting a large unavoidable expense, you can actually use the financial market and use compound interest to help you earn the money you need.
I saw a chart that said that the GDP of Europe and America was about equal 15 years ago and now the GDP of America is 50% larger. So they’ve had very little growth in the past 15 years.
Your country’s companies shift their production plants to the third world. Immigrants coming into your 1st world country are losing out on the job markets your employers are moving, from your country to the third world 😢😢😢 if only your companies were loyal to yall instead of moving jobs away from your country
Two main reasons, copyright and privacy. Copyright laws make it very difficult to do anything like make a large company like Google in Europe and privacy legislation makes making a service like the Facebook impossible AND it makes European consumers "less valuable" for advertisers. The immediate shock of the G.D.P.R. was a 20% cut of almost all E.U. online companies, but it has also essentially slowed the growth of European digital market.
We really don't. Most people don't invest or buy a fifth of what they want and instead need to save years just to get a car. Rich folk consume whatever they want though, so you might be live in a bubble
Your labor trends chart is deceptive because it’s only through 2015. USA productivity growth 2019-2024 averaged 1.8% annually. The average from 1947 through the present was only 2.1% annually. There has been no significant decline in American productivity growth.
It's funny that when someone talks about Europe they mostly refer to West Europe and almost completely disregard East Europe like we don't even exist :D
We have better labour laws. We don't over consume as much. Our taxes are better utilized (healthcare, duh). I do think we need to bring tax down and pivot investment from welfare to economic growth for a while, but let's not become the US, thank you very much.
@@fernandosegala3964 Right, but you're presenting a false dichotomy here. One could investigate the causes behind American wage growth and attempt to recreate that success, without adopting the American economic model wholesale.
Healthcare = More taxes for healthcare for pensioners with their already high State Pension payments (also from higher taxes) and are prioritised in the waiting lists.
That explains why the usa is more dynamic imo not salaries Idk about every eu country but if companies want to have lower employers protection they hire you as a contractor ,I know the uk also does it although they compensate with a bit higher salary. I think most Europeans aren’t against taxes if they get what they were promised from it, even with a rethoric coming from usa gurus. Investments imo some countries like mine have local monopolies/olygopoly that put up barriers to competitors usually European ones, besides bigger countries or countries sandwiched between bigger countries have smaller markets leading to not being fisible to create a competitor. Despite everyone using tech/software most European are more opposed to and now with a aging population is probably even worse, big countries like Germany are really opposed to it compared to small countries like estonia or even sweden. We are a bunch of individuals countries,functioning at different levels although a lot of people compare to the usa having different states the dynamic in Europe is very different. How we did it before 08s? i bet it was because the world was slower giving time to companies to adapt but nowadays the mentality is break stuff and worry about it later
Yeah... both times I've had a job offer from Europe (Sweden, Spain) I've had to turn it down. Either the salary was too low, or the taxes were so much higher, that I would just be so much worse off than in the UK. We seem to have an okay middleground of wages being high, taxes being middling, and public services being okayish.
Europe doesn't have a competitive digital and high tech sector like it used to in the 20th century. We still produce fashion, cheeses, wines and luxury goods instead of software and IA companies. Case closed
@@bishtonthe exception doesn’t make the norm. All over the EU there is a huge lack of high tech and software industry. Tiny Israel has more high tech companies as a percentage of its GDP than the whole mighty EU. Even Germany the biggest EU economy is lagging behind the digital economy.
EU has an initiative for businesses to develop AI powered technologies. My employer won a scholarship despite having absolutely 0 plan how to use it. Anyone can grab it!
Nobody is going to buy luxury goods if they can't afford it. Even the previous wealth and rich Chinese are stopping buying now that their own economy is doing bad.
We don't consume enough, because we have no money! Export driven economic model has suppressed wages for decades to remain competitive, while food, housing and services spiraled out of control!
"Europeans don't consume enough" You can blame greedy landlords and food companies for that! When my monthly salary goes up by 60€, but rent + food by 100€, i simply have less money to spend. For example, the cost of some basic foods like potatoes have DOUBLED in the last 5 years in my country.
you can't force Europeans to spend more lol. If times are uncertain and inflation is high you are not spending. And that is not the average citizens fault.
The thing that people do not understand (or they pretend not to understand), is that real productivity follows improvements in mechanization, automation, simplification of bureaucratic tasks and digitalization. Companies that have abundant workers that receive a low salary to perform their work, have no reason to invest in more efficient machinery and improve production methods, so productivity stays low. Higher salaries and shortage of workers forces companies to mechanize and automatize further their operations, which increases productivity, not the other way around. So if you want more productivity per worker in a country, increase the salaries by law and give incentives to companies to mechanize, automatize and digitalize, plus invest in a good renewable energy plan to make sure energy is abundant and cheap. Low wages is the cause of low productivity, not the consequence.
but where the low skill workers are supposed to go? I work in said automations solution company and our clients usually fire at least a part of their old staff. Low birth rates are low key a blessing for them, but imagine that we do not and/or immigration would get even worse.
Unfortunately renewable energy isn't all that cheap in most parts of Europe. Sure, it doesn't cost much to generate, but the costs of compensating for intermittency and providing constant reliable power for industry add up.
@@pedrolopes3542 If you only consider the cost of generation, sure. But if you factor in the cost of transmission, gas spinning reserve and/or storage that changes. Europe hasn't been pouring subsidies into renewables for no reason.
Really? UK doing better with the wages? Let's see the OFFICIAL DATA from the Wikipedia then shall we? Monthly net salary in Europe : -Germany = 3118 euros -Austria = 3269 euros -Netherlands = 3145 euros -Denmark = 4013 euros -Ireland = 3105 euros -Sweden = 3335 euros -Norway = 3507 euros -Iceland = 3466 euros -Switzerland = 5674 euros -Luxembourg = 4224 euros -UK = 2668 euros. Shell we look at the GROSS monthly salaries across the western Europe? - Germany = 4924 euros -Netherlands = 4191 euros -Denmark = 6294 euros -Sweden = 4327 euros -Norway = 4745 euros -Finland = 4112 euros -Ireland = 4172 euros -Iceland = 4848 euros -Austria = 4779 euros -Luxembourg = 6327 euros -Switzerland = 7223 euros -Belgium = 3886 euros -France = 3530 euros -UK = 3369 euros. UK doing better with the wages? Are you ok my friend? Better than Italy? Maybe. Do you KNOW that currently PPP VALUE of the average monthly net salary, adjusted for the LIVING COSTS of Spain is 3345 dollars and for the UK it's 3178 dollars? In Spain REAL WORTH of your salary is literally HIGHER than in the UK now. UK ain't doing good with the salaries at ALL compared to the WESTERN Europe. In fact, it's doing INCREDIBLY bad. And PPP worth of the salary in, for example, Croatia is 2845 dollars now and in Poland it's 2780 dollars, in Romania it's 2469 dollars, in Montenegro it's 2220 dollars and in Portugal it's 2149 dollars. It just shows that in cheaper countries of Europe standard is MUCH higher than reflected by the OFFICIAL salaries, cause things are CHEAPER.
@racimegacar Inflation was WORSE in the UK and for a longer time than in the EU. We can look at the PPP (adjusted for the LIVING COSTS) value of the average monthly net salaries in Europe : -Germany = 4667 dollars -France = 3556 dollars -Netherlands = 4199 dollars -Belgium = 3450 dollars -Austria = 4484 dollars -Switzerland = 5442 dollars -Denmark = 4424 dollars -Sweden = 4389 dollars -Ireland = 4196 dollars -Iceland = 3741 dollars -Spain = 3345 dollars -UK = 3178 dollars -Croatia = 2845 dollars -Poland = 2780 dollars, etc. Hey even ex communist Europe is catching up with the super expensive UK, by the PPP value of the average monthly net salaries! While the entire western Europe is waaaay ahead of the UK.
Norwegian here - we are also currently being screwed over by useless government. But I see a bright future here as the Dubai of the North. We just need to sort out a few cultural issues first.
And yet the British wages are still weak to afford stuff in the UK because in the EU a lot of stuff is affordable such as public transportation and better infrastructure.
Saying "well its not as bad as them" is such a pitiful argument, if you don't like the data, then dont watch the video. Germans, French, Italians, Spanish, pretty much all of Europe has good living standards compared to most of the world but they know it can be better, saying 'Poland is better' isn't gonna make Poland better than Germany or France or Switzerland, Norway, Finland, neverlands, Austria etc. But hey, if you want to just keep lowering the standards to make Poland seem better without actually adressing the problems then it will always been playing catch up to western Europe. (Germany in particular 🤣)
@lunkycultist5519 I mean most major EU countries are far ahead in terms of infrastructure and transportation compared to the UK. No need to cry about it
@KSzkodaGames Except compared to its nearest neighbour France, UK grocery prices are 23.6% lower than in France, while local purchasing power in the UK is 15.9% higher than in France. ...11 Aug 2023
@@BLACKSTA361 Exactly when will the UK reduce the Train Ticket prices while Germany and Portugal introduced Monthly memberships to have unlimited train journeys across the across country.
@@BLACKSTA361 Exactly when will the UK reduce the Train Ticket prices while Germany and Portugal introduced Monthly memberships to have unlimited train journeys across the country.
I would be willing to bet that Brilliant could not teach me about the design parameters of musical instrument strings, but I learned them with out brilliant. And with out any other authoritarian entity.
I nearly doubled my salary (2850 pre tax to 5450) in the past 3 years and I still barely scrape by... It's such a shame how expensive everything has gotten.
Because the EU was never able to develop an indigenous tech sector, Europe isn't one country and is separated by different languages and regulations with the added EU bureaucracy If the EU wants higher wages, it needs a thriving tech sector and create thousands of billionaires and unicorns
That will require Europeans to not hate billionaires and rich people. Despite what the internet may tell you, Americans are pretty affirming of other people trying to get rich.
I am working on a plan to bring tech companies to Eastern Europe. I am Alexander Julius von Mannheim, Ursula von der Leyen's deputy and head of The Bureau EU's equivalent of the CIA.
@@geminusleonem9365 Billionaires own companies which produce products which make money which is then paid to workers which then allows workers to buy things to consume which then feeds back into product production. That's how the economy works. Without the guys on top there is nothing trickling down to the bottom. What makes it work or not work is your economic policy and regulations.
The rate of productivity growth since WW2 has largely been influenced by the two most recent industrial revolutions. The positive impact of the 2nd industrial revolution (electricity, car, planes) was felt between 1945 and 1975. The positive impact of the 3rd industrial revolution (computers, Internet) was experienced between 1990 and 2005. Productivity wouldn't increase in the mature, rich economies until the positive impacts of the 4th industrial revolution (AI) kick in.
@Pete_YT Innovation is a key component of productivity growth, and the trends I summarised are real. The US is ahead of Europe when it comes to the emerging 4th industrial revolution. However, Europe will undoubtedly benefit from it, but perhaps to a lesser extent. The US has been a leader in 2 of the past industrial revolutions, with the UK leading the first. No doubt the US will continue to lead the fourth industrial revolution too.
Lenin: abstract financial products are more valued than real production… not to mention c-suite compensation exploding. That’s a big part of where our raises went.
You said wrong based on your own chart: at min 2:15, the Chart shows the productivity increased by 54% and the the compensation increased by 175%. You said just opposite.
European wages low... Europeans not consuming enough.... Rents and housing on the moon European politics: I see no connection here but we should raise retirements and support old
when I told an american friend that spanish average wage is 19k he asked me wether that was on a monthly basis. I wanted to cry.
Nobody tells us that Americans are paid at least double what europeans are paid for low end jobs like waitressing and warehousing. For skilled jobs, the sky is the limit. European wages are completed suppressed. But we don't have to worry about retirement or medical, at least not as much. Conclusion, the welfare system is actually corporate welfare. It helps companies alot.
Waitresses make that much because of tips, not because of wages. And tips are one of those things that Europeans not only hate, but look down on American for using.
As far as I can tell European workers are much less productive than Americans and actively sabotage any attempts to change this.
@@TheBoobanI would rather make my own money and prepare for the future then having to depend on the government.
@@AJ-zy9jf Then you should think about starting your own company.
@@AJ-zy9jf I can agree on education but not healthcare, you don't know what will happen tomorrow so cheap healthcare is the best thing humanity ever come up with
Greek here. What's a 'wage'?
@@konstantinosramiotis1444 will probably be an r/woosh moment for me but the equivalent word in Greek according to Google Translate is μισθός.
@inbb510 that's a weird way of saying "nap"
Sorry my friend. The eu treated Greece terribly during the financial crisis.
@@colinsmith1288Deserved, they lied about their numbers
@@tommyjohnson9176 The Greeks did not deserve to be treated so badly. It was one of the reasons l voted brexit.
Please tell me if I'm wrong, but the great decoupling is for me just a sign that we are getting scammed. Productivity increases, inflation increases, and the top 1% is also richer. But our wages and spending capability is in an all time low.
I guess the complete answer is way more complex, but I can't help the feeling that the money is just funeling up, to some big fortunes, while's we are getting scammed
Yes I agree with you, look up austerity measures. The only way out is with unions so we can bargain together, something this channel is almost afraid to mention
And as always people living this topic never talk about thr fact the companies paying low wages for higher productivity are raking in large profits. Which is essentially just taking money from everyone else
Well, in my understanding the main issue is taxation to a point where regular people just can’t put one penny aside, the second I believe it is excess of bureaucracy, to sum up shortly there is no way you could get successful when the system makes sure to bend you at every turn you make daily in your life.
If you have doubts take a look closer at national priorities in each country across the EU.
Well, in my understanding the main issue is taxation to a point where regular people just can’t put one penny aside, the second I believe it is excess of bureaucracy, to sum up shortly there is no way you could get successful when the system makes sure to bend you at every turn you make daily in your life.
If you have doubts take a look closer at national priorities in each country across the EU.
Every time I see that US-Americans with the same job get 3 to 5 times more money per hour than me I feel scammed.
Europeans don't consume enough.. yeah no sht.
If your wage is 2300 after tax and an iPhone cost around 1600euros with VAT you think twice before buying that iPhone or TV,pc , car etc...
What? 2300 after tax? I'm an engineer and I make much much less in Italy 😂😂 2300 would be a good wage actually. Then guy buy a cheaper phone 🤦♂️ I got mine a few years ago for 150 euros.
Now consider that in half the Eurozone the average wage is half that... (Portugal, Spain, Greece, etc)
What iphone is 1600 lol
@@Astke latest iphone 16 pro max or pro
@@MarketsDriveTheWorld U studied and make still less than 2300 is kinda crazy. Thought italy is a rich country but guess only for the already wealthy.
I cant CONSOOM more because alll my facking income is going to my landlord who uses it to buy even more property. DO WE SEE THE PROBLEM HERE?
You wish it was that easy of a problem
Virgin tenant vs Chad landlord
as the americans would say: PREACH BROTHER
Your landlord makes 10% on his investment at best. Stock market returns with a bunch of work tacked on
@@bamaramify I mean, there are many problems, but landlords are one of them. At least as they are right now. Landlords do not contribute to a region's prosperity, yet are the biggest profiteers. When a company releases a new product that is better than the product of competitors, they can increase the prices because the demand for their superior product rises, but in housing it is different. Politics, industry or social changes make a region better than a "competing" region, so intuitively these should be able to increase their "prices". Instead, landlords do. They don't even have to increase quality of their product, because they know that the supply is rare. And because developments in regions take a long time, investors can foresee these changes and buy all houses while they are cheap(er).
And I didn't even mention induced scarcity for housing...
Or as a more general critique to the social group of investors: The way they earn money is by owning something. They do not contribute to society in a productive way. And to make matters worse, they do not contribute to the market the way the working class does, because they hoard their wealth instead of spending it. Essentially, they take money out of circulation.
I know, these are very simplified approaches, nonetheless they show the general problems that are caused by housing investors and wealth hoarders.
European and chinese economy is export based.American economy is consumption based
US economy is based on forcing oil producing countries to use your currency so that you can print as much as you want without devaluing
@Hasanaljadid And if every country practised export based economics (Mercantilism), the world economy would implode
When five Europeans do the work of one American, you can’t complain that you earn a fifth of the salary.
In China's tech industry wages are MUCH higher than Europe while cost of living is only a fraction
@@dengist8172 i doubt that
1. our population can't afford the stuff we produce because the wages are too low
2. increase exports to sell the stuff our population can't afford
3. lower wages to make our exports more competitive
4. back to 1.
Great economic model!
No innovation = no growth.
Import migrants who will work for even less
@@dzonikg we tried that it doesnt work very well..
well who cares, its all mass produced by cheap labour in China anyway. The kicker is they want to re-sell it to their own countries for a big mark up. Does not work when there is inflation.
@@dzonikg hey Serbian compatriot, those who will work for low wages are not very educated and productive either and in most cases they will not want to stay or will not want to work or their kids would still not be incorporated into society (which is not only to blame them but bad and discriminatory pre-school and school system in most of western countries that ensures class reproduction meaning kids from poor parent will stay poor, from low educated will stay low educated)
All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
With $420,000 in retirement savings, diversifying into assets that historically perform well during inflationary periods, such as Treasury Inflation-Protected Securities (TIPS), commodities, or foreign currency assets, might help protect against potential dollar depreciation. Exploring options like global real estate, diversified foreign bonds, or high-quality international equities may also offer a hedge against a declining dollar and inflationary risks .
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions.
Consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Jennafer Beaver Turner is the licensed advisor I use.
Just research the name. You'd find necessary details to work with to set up an appointment
Thanks, I looked her up on Google and was very impressed by her credentials. I reached out because I need all the help I can get. I've scheduled a phone call with her.
Title: Why are EU wages so low
Video: So, why is this? Well, this will require a whole other video
😂😅
So, this video was a waste of time. I thought this was THE video about it as the title suggests 🤷♂️
Your videos really are getting worse...
@@vkdrk still a nice platform for comments and discussions though
It's much more complex.
Ah yes why not expect a small news org to explain a problem that multiple nations are facing where even top end economists argue about cause and solution without a real answer.
@@yofedstyhrega4594 Then don't make videos with a title that says they have an explanation when they don't. Simple 🤣
A whole bunch of "here's some stats showing how low wages are, but we won't give any sort of explanation what might be causing this".
Europe at some point in the last 20 years thought the recipe for economic growth ist to compete with the world in low poductivity low wage Jobs. Even now this seems to still be the tactic. Why anybody thinks, especially in light of the demographic issues, this was ever a good idea, is beyond me. Europe needs to strengthen internal demand, even if that means reducing their Exports (oh no, Shareholder at VW won't make as much money)
no, it's more like forty years...
Why does Europe need to create an overconsumption problem. Europeans consume enough, infact maybe too much. If Europe has excess productive capacity, it should export. More demand in a developed country is not a good thing for the world, and ultimately even for the country itself, as bubbles will pop eventually and hurt everyone but the big business owners.
The problem with European wages is due to weakened unions and workers rights, disguised in the language of "Labour Market Flexibility"
Bingo!
@@adamo1242 weakened unions? in Europe ????? Where on the planet they are stronger???
@@adamo1242 european wages are to low compared to Productivity. This is inefficient. Germany has for a long time exported meat. There is no economicaly sound reason for why germany, one of the most productive countries on the planet would export something like meat. This is only because of artifically low wages. Now it is a recipe for disaster, beacuse europe due to high enery prices and bad Business decisions (to low private and Public investment) can no longer compete. Europe needs to start fiscal acceleration.
The graphs at 2:15 say that _wages_ increased by 175%, while _productivity_ only increased by 54% (you state the opposite). Maybe the labeling is wrong?
Labeling is incorrect. All other sources say productivity increased more than pay in the US.
Bro this channels data is always wrong.
You are correct. But in addition to this, his charts are very inconsistent with each other. What a mess!
I hate the brilliant ads.
this!!!!!!!!!
It's called brilliant. OOOOOOOOOOOOHHHHHHHHHHH
I hate any youtube ads.They are stupid ,boring
This is youtube. Be thankful they're advertising something that isn't fraud.
If they start in with Masterworks or BetterHelp, then I'll complain.
The thing is that richer people and companies are getting better and better at retaining money and using loopholes. So there is even less money going around to even less people.
I have lived in the US my entire life but I have traveled to Europe several times and I work for a company based in Europe.
Regarding to this topic, I noticed three things.
1) Like you said, Americans spend a lot more than Europeans and one BIG place we spend is on Housing - often new housing.
As I have gotten older, I have more income and I have spent a lot of that one having a nicer house.
Another factor is medical which we pay for ourselves and that keeps increasing requiring higher wages.
2) Americans are a LOT more mobile. For my last job change, I moved 3.000 miles (4,800 Km). Super easy for me but crazy difficult for a European.
That means several things 1) There are A LOT of job opportunities 2) When I change, the company usually has to offer me more money 3) I get a newer more expensive house
This mobility also means that if I have a life change (like a family) I could easily move from the city to the country so I could get more space.
Also, all this space means more room to build new and more expensive houses.
3) From what I have seen, Americans work way more hours than Europeans do and get way less days off. That is OK and at times I am jealous but it is still a factor.
As we say: In Europe you work to live, in America you live to work. Being wealthy isn't the be all end all as long as you can afford a decent standard of living.
It's Italy destroying these averages with salaries stuck in 1995...
That's funny, our wages haven't reflected the inflation since the 1960's!
Mi scusi, ma qui in Germania è lo stesso. Anche se probabilmente in Italia è ancora peggio.
All of this is noise on the simple fact that companies are making record profits and none of this is beings passed down to workers. The myth of trickle down.
@@mzo.7333 tricke down includes way more then that. Lower taxes? Low interest rates? A good business environment? A healthy economy?
To quote JFK, "A country can't tax its way into prosperity. "
Regulations are killing the European economy. As they play the green net zero bullshit making the middle class hurt with high cost of living because of the green energy scam while the rest of the world like China are polluting on a grand scale is garbage. Why won't they stop China? $$. California working class have to pay $8 for fuel while the impact of that is nothing on a world scale.
They aren’t making record profits, especially European companies
That's US companies not the EU. Americans don't get paid 4 to 5 weeks vacation. You're lucky to get 1 week and it's a good job if you get 2
I never understood arguments like yours... I'd blame the bureaucracy, high taxes and quantitative easing and low interest rates instead. You'll always get record profits because of inflation. Companies were and are always greedy
@@bamaramifyGetting 2 weeks of more vacation Doesn't justify 50% less wages
"Average wages" is an inferior metric compared to median wages since ultra-high wage earners skew the data higher than most people actually earn. Always use the median wage when comparing wages, not the average wage.
The fact that they went from blaming us for spending too much on coffee to blaming us for saving up too much means I require zero permission to stop listening to economists and politicians, and every right to call them empty mouthpieces. They're not just destructive, but rather, its clear that they aren't even listening to the shit that falls out of there own mouths, so why the ACTUAL FUCK SHOULD WE!?
Nobody has been blaming you for any of this, but maybe caffeine is making you jittery and paranoid.
They say :Poor people shouldn’t have kids
Same people: birth rates are declining make babies peasants
Nobody wants to work in the same vein people are getting layoff
Ai Will save us from low birth rates but we still need workers
We need to decouple from the USA, take not measure to do it
Europe has a immigration problem but employers still want cheap immigrant labor 🤦♂️
They don’t know what they want anymore.
@@SianaGearz ya've never heard of avocodo toast?
It isn't the same people saying these two things. Economists aren't saying coffee/avocado is affecting rates of house ownership rates. It's the daily mail and similar.
They might both be older and wealthier than us, but we don't need to stick them both in the same bucket.
Who are “they”. Victim mentality.
As a American. The only way you got a good raise was to find another job. My boss would never give me the raise I wanted, so i left. I switched jobs 2 times.
For a lot of people in Europe that doesn’t usually work only by emigrating to another European country with a bigger economy, I guess similar to someone from ohio going to California or nyc I guess , you get higher salary worse qol but you save then you move back home if you don’t mind the pay cut.
This is a generalization so doesn’t apply to every jobs or European country
Europeans fear moving jobs because they know they are not productive. They find a company and job they can hide in and feel like a victim.
@@santostv. Can you live in 1 county but work in other? 🤔
Why would Europeans care? Europe is better than America in every metric. So they say.
@@flashsentry1791 Well if you live close to the border yes. For instance as a French I know some people work in Switzerland, have their wages which are amongst the highest in the world and live in France paying French prices. This is one of the best situation possible
How the fuck are we supposed to consume without money?
just open another consumer credit card 4Head
Have tried bartering. If you have any sheep they might do well in this market. If not your daughters could be a good alternative.
@@mazedmarky Cringe using twitch emotes outside of twitch 🤓
It's a vicious cycle.
Take out loans and make credit debt like all the Americans
Life of Czech person, well everything is now 30% more expensive here in Czechia, can we get 30% increased wages? Companies: "Sorry dude I don't speak bigger wages"
But I thought you were better than America.
@ernst91 you just came here to start an argument, didn't you?
The reason why Belgium saw a 2,9% increase in wages is because we have something referred to as "Indexation". When inflation goes up our wages, social security benefits and pensions are mandated by law to go up as well to keep up with inflation and maintain our standard of living.
It's a pretty great system that benefits all layers of society, so naturally the neo liberal parties and the employer confederations want to get rid of it.
I think with this system you can really quickly get into an inflation spiral, where as inflation increases the wages increase even more and so on… I don’t know how it works in Belgium I’m just sayin this is the reason a lot of countries don’t want to implement systems like this :D
@@fexi200 Yeah, cause everybody is brainwashed to follow wathever the neo liberals say. But the prices hikes on a lot of products including rent are capped per year. So they can only rise a certain percent per year. Works well for working people , CEO's, landlords and major corporations off course hate it.
@@fexi200Since Belgium is only a small part of the Euro zone, our wages won't have a big impact on the Euro's value.
It's a great idea in principal, but in typical Belgian fashion they've actually applied it badly. Mandating everybody's compensation to increase by a certain rate (e.g. I think it was 11.6% at beginning of 2023 due to the crazy inflation in 2022) sounds wonderful in theory, but that 11.6% gets applied to someone's compensation regardless whether their salary was €30K per year or over €100K per year...so those on the highest salaries benefit far more than those on lower salaries, which not only goes against the whole principal of this indexation, but it quickly becomes an unsustainable cost increase for many businesses which already have tight margins. The long-term impacts in Belgium are still to be determined but anecdotally I know lots of firms have begun cost-cutting as a result of it. Indexation can only really work if it's tied to the minimum wage or something and everyone's salary increases by the same fixed amount rather than a fixed %.
@@nekhumonta But it has an impact on inflation in Belgium specifically which I believe was @fexi200's point.
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
It has never been simpler to grasp how to expand your wealth than it is right now, thanks to the availability of competent portfolio advisors that can help you experience and learn about a market with a wide range of assets. I think it's impossible to predict how changing dollar values will affect assets.
Having an investment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Melissa Terri Swayne is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
The minimum wage in Hungary is 400 euros after taxes. The median is not much higher either. We are happy if we can consume enough oxygen lol
Is that a week?
@jimbomacers Per month
@@jimbomacersMonth
Inflation is a tax on the poor, who do most of the consuming. Makes sense, then.
i think the issue is not _"why are European wages so low?",_ the issue should be _"why are North American wages so inflated ?"_
my salary in the Netherlands was AWESOME, but still half the salary an average American would receive.
Sure, the main issue is that the "wage" alone is just one number, you have to factor other working beneficts, such as vacation and sick days, healtcare, public transport, job stability, work-life-balance, etc... which the European market clearly excel at.
Edit: I am Brazilian, but lived in the Netherlands for ~7 years between 2016 and 2022. So this is a 3rd party view between the US and Europe
the companies are pushed to that as they get tax credits for doing that ( prizes, food stamps, etc. ) too
Doesn't solve the brain drain that is occuring in Europe to the US or Switzerland
I feel like "less dysfunctional than America" is really not the goal you want to be aiming at. European wages gave fallen in real terms, and this is bad for Europeans regardless of what is happening across the Atlantic.
But your welfare state is a Ponzi scheme that is unsustainable and I don't think in 20 years time, you will bragging about how you have all those "free" stuff when the population ages even more and young people have to pay more and more taxes just to accommodate an aging population.
North American wages are not so "inflated" they're just straight up higher. Europe has higher prices and higher inflation every year. For example fuel is way more expensive and it's used everywhere
It's crazy how many people fail to take into account the cost of living when comparing wages. Average wages in my home country are quite a bit higher than in the country where I live right now, but I am able to have a far higher standard of living with a lower wage due to also having lower cost of living.
If you just chase the high pay check, you might often just end up spending all of it for necessities and not being left with much more extra, than you would if you accepted a lower paying position in a country with lower cost of living.
GDP measures spending, not productivity. For example, burning lots of fuel or buying a new phone every year increases spending without necessarily improving productivity. If a country produces items designed to last 10 years, with just a few minor repairs, their productivity is effectively higher compared to an economy where similar items are replaced every 3 years. I hope Europe moves toward durable products and lower resource consumption - aiming for a lifestyle that’s pleasant yet sustainable. Comfortable, but balanced.
NoOooO the GDP MUST rise, or you WILL be unhappy! Buy a new car and a new phone NOW because both have TWO more AI CORES than last year's models! BRUHH technology is AWESOME!
@@kevinflummi2822 I'm a consumer - I own a PS5 and plan to get a PS6, but I don’t feel the need for a PS5 Pro. I used to have a Xiaomi Redmi 8 Pro, now I have a Xiaomi Redmi 12 Pro, and my next phone will likely be the Xiaomi Redmi 16 Pro, once the 17 is well-established on the market. My son now uses my previous phone. He had the option to buy a new one, but he chose to save his money and use my old phone (restored to factory settings and running like new).
that's the thing i hate about these kinds of video's.
they always make it seem like the situation is bad, to get more clicks.
but in reality it's just that one place in doing it differently than the other one.
for example (a few of) the differences between the US en Europe, and why wages and GDP seem so unequal compared between the two:
US:
you get a big paycheck but you have to pay for everything yourself, healthcare, a car, higher food prices etc.
Europe:
you get a smaller paycheck but taxes have already covered everything and the infrastructure is in decent > good condition thanks to these taxes.
US:
massive GDP, but that is thanks to the always buying more, more, more. the massive healthcare debt, student debt, year on year government deficit etc.
so that high GDP is based of spending of money the state and the people doesn't have.
Europe:
lower GDP, but that doesn't mean much. it's in a big part because people and governments spend their money wiser and don't keep buying the newest stuff. or build cities that need massive maintenance budgets
the US is a big house of cards, and when the $ loses it's position in the world it will all come crashing down.
that is if the ongoing polarization hasn't brought the US Civil War: part II along before that.
the always keeping GDP growing won't and can't go on, and the sooner we start to shift to another the better, for the people and the planet.
these videos are just to pamper to some viewers, make them feel better about their situation and not question their situation.
and to get more clicks so they earn more money.
but in the end the video is worth nothing.
@@ChristiaanHW US has much more advanced technology than the EU, which leads through economic dominance of multiple multinational companies. Plus, dollar is still reserve currency and is backed by the American military. Stop this Euro cope. The US would still have a higher gdp than the EU even if consumer spending drastically reduced.
@@ChristiaanHW Many countries like Denmark, Sweden also have high househld debt levels too.
Wages say nothing. Spendable income is what counts. You can easily subtract $50.000 from American incomes in comparison to European ones, because the immensely higher fixed costs they have.
For instance:
-Making $60.000 in California you are on the brink of being a homeless bum, whereas in Europe you would be living the good life with a nice house, car and going on vacation twice a year.
-Watch some vlogs from Americans that moved to Europe and compared what their fixed costs where in the States to where they live now, it's always $4.000 - $5.000 less a month that they save on rent, utilities, heath insurance, groceries, Internet, phone plans, transportation etc.
You may be surprise to know that not only America is not just California, but not all of California is San Fransisco and Los Angeles.
I live Tennessee and easily get by on $36.000 a year while making well over $100.000 a year.
Well that is like comparing some body living in dt Paris or Lake Como or whatever.
No innovation in Europe = no growth.
It’s hilarious that you used California as your example. 99% of Americans have lower housing costs than there. Americans have less taxes, lower cost of living, and cheaper goods and services than Europeans. We also have higher wages on average. That means we have vastly more money at the end of the day than European people. I guess that’s why our country has a GDP like your whole continent
Texas is the sweetspot of high tech cities and cheaper cost of living
I love the way the decoupling of wages and productivity is treated like a natural or unknowable phenomenon, not intentional and open greed by the Capital class. Plenty of data on where all the productivity since the 80s has gone
Productivity decoupling has a simple cause - inequality. A small number are getting extremely rich off the backs of productivity improvements, and are also less likely to invest in productivity because they can get rich by doing nothing, and workers arent pushing for productivity growth because they know it doesnt help them.
Another socialist staying poor because of their pathetic victim mentality
Dude nothing is simple here. A "small number" is getting richer is not accurate, the government is
That depends on inflation and corporate tax rate. Low inflation or worse deinflation means it's better to invest less or not at all. CTR if higher means it's better to reinvest in your own company meanwhile a lower CTR means it's better to invest into the creation of new businesses or even industries.
There has never been a better time to be alive. Just build something.
POV: relative wages steadily falling since the 70s compared to average household expenses, house prices exploding...
Politicians and economists:
"Why don't people buy more stuff or want to have more children?
😑
What's the source on relative wages falling since the 70s? Cause I know for sure that's not the case for most of Europe, Just in Germany they've stayed relatively the same since 2000 and with both economic crashes and nominal wages are still increasing because of bargaining power.
@@alexanderd6793 🤣
What do wages have to do with children? Based on that the poorest people would have none and the richest would have many. I mean, one could argue that the poor do not have adequate access to birth controls, and that is why they still have children. But do not the wealthy people not have many more children that the people or middle class? You seem to be suggesting that affordability is the key to birthrates.
No innovation = no growth.
@@alexanderd6793 Wages going down are what most Germans talk. By their story things went wrong when DEM -> EUR converted, then when crisis 2007. hit and the rest started with COVID and Ukraine... I am living in Germany since 2016 but was visiting Berlin in 2012. It is noticeable fall: back then all taxis were Mercedes. Now Mercedes in nowhere to be seen. If you see it, it is some 10+ old model driven by some Auslander from countries where Mercedes name is still a symbol of success. If I take a time machine and go back 20 years and tell Germans that they will see in the future more Dacias on the streets than Audi even in Munich they would think I am crazy. Not long ago people from Balkans would come to work, now most of them are thinking of going back. Specially people from Romania and Croatia. Some of them already went back, good working people with whole families. My son's best friend from primary school was taken to Bosnia, his parents decided to go back after more than 10 years living and working.
As far as I remember from other US vs EU videos, prices for rent and food is also lower than in the US. And don't even start with healthcare. Just comparing wages via exchange rates don't show the whole picture.
they are still lower after deducting those
@@panter82 Ask those 60& of American who work paycheck to paycheck. Or those who are homeless and have to sleep in their car despite having a job. The "real wages" (those who take cost of living into account) are certainly higher in the US for a part of the population, but for the bottom half? I have doubts.
I still have to pay 55% of my monthly pay for rent
Could it be because the EU is actually going through a recession and companies are finding it harder to pay their employees more?
@@mrm7058 This.
I have a really hard time accepting that people making around minimum wage are better of in the US than the EU.
There's no way a MCDonalds cashier is better of in the US.
Why is Europe falling further and further behind while the US is getting further and further ahead?
Here is why: People like my dad give up over 60% of his salary each month. All this money is wasted on stuff he never wanted and has no say in.
We are pathetic in Europe. We are so obsessed with socialist policies... we are killing our own continent in the process - again
If only we had a slightest idea what happened in 1971...
Better to ask why European productivity is so low. Too many old people draining all the resources due to socialist policies.
Ireland is the most productive country in the world. It’s the lazy communists on the continent that are lowering the stats.
There is a surplus of labour due to globalisation. They have exported as many jobs as they can, and then for everything else they imported people to do it. And then on top of that the huge bureaucracy regulated everything, and gave you so much job security, that it is extremely difficult, and unnecessary to innovate.
I’m Dutch, from the Netherlands. Wages in the Netherlands are relatively low, especially compared to the US (huge difference!). Here are three reasons why:
1. Stingy Employers: Many Dutch employers are hesitant to invest heavily in talent. Some companies prefer hiring “average” employees because they are cheaper and can still perform well enough to meet the job’s requirements. Btw, it is even worse in some other European countries.
2. Strict Labor Regulations: The Netherlands has many rules and regulations that favor employees, offering strong protections and benefits. It is a good thing, however, these benefits come at a cost: employers face significant risks when hiring new staff, which often translates to lower wages for employees.
3. Lack of High-Growth Companies: Unlike the US, the Netherlands (and most European countries) lack large, rapidly growing companies in sectors like fintech, AI, and e-commerce. Without these high-revenue corporations, there is less opportunity for the high salaries they typically bring. No big corporates, no big money.
@2:10 The US coming off the gold standard in 1971 was the catalyst for the decoupling of wages from productivity.
How so? How did one thing affect the other?
For me this is much better explained by the rise of neoliberalism in 80s
@@Nermalton77 neoliberals wouldn't of survived in a world with a gold backed currency its very closely linked.
Interesting take. Maybe it's related to debasing the currency i.e. expansionary monetary policy.
@@Globe_Glider In 1971 you would have flunked grade school by writing "wouldn't of", whereas today that will see you through university, so there is also that. 🤔
@@mikicerise6250 most people don't write formally on the internet and anyways what use is your perfect grammar if your unable to understand how your being robbed 😂😂, 1971 is the cause of all this but most are too dumb to understand.
American here. A joke with management was if you don’t want to get it done, you’ll send the job to London. 😂 Their reputation is getting the minimum done weeks late.
People say income tax is the main issue, it's a contributing factor but not the main issue, as it's money that at least gets used on infrastructure.
Europe has a problem with insane proportions of income going to rent.
A Georgist system where rents are forced to be low due to market forces via a land value tax, combined with drastic cuts in income tax are the only way we will see growth.
Ahh, a fellow Georgist! We still exist!
@@mycatistypingthis5450 we need to evangelise!
yeah, nothing wrong with taxes, as long as they get used in a good way.
if you're able to see where your taxes go and enjoy safe infrastructure, good schools, good electricity (no outages) etc you should be happy about paying those taxes.
the people against taxes don't understand what they would have to care for themselves if taxes where lower or even gone.
@@ChristiaanHW problem is the EU is more of a transfer Union. Rich countries are forced to bail out the corrupt/weaker south. Also EU bureaucracy and rule making is absurd.
@@ChristiaanHW over taxation is a problem, especially when you see the money being wasted on useless research projects.
And yet north America( Us, Canada ) has a higher poverty rate ….
So many words are used to mask a simple truth: companies and investment funds have become excessively greedy, prioritizing profits at the expense of fair wages. This relentless pursuit of higher returns is eroding the middle class, forcing workers to meet ever-increasing demands without corresponding compensation.
You have victim mentality. Just build something.
Yes, I completely agree. Hedge funds have WAY too much power. From owning basically everything to controlling politicians and keeping people hostage because by their retirement money. New world order doesn't sound so c0nspiracy theory anymore, eh?..
@@Pete_YTBuild what, a ship? You'll have to give more details, cause right now it looks like you're just victim blaming.
Not sure how it's tied to low union membership when the US and UK have better wage growth and low union membership.
Czechia: Eastern Europe salaries and Western Europe prices.
Is czechia or Poland better country to live?
Serbia: Apartments that were given for free to everyone during Yugoslavia now renting for awerage wage
Usa economy is liberaler than eu this is diffrence. If eu dont change the socialistic approach this distance will be increased in decades.
Because in EU your wage is the money remaining once your boss paid all the social heath care / retirement / unemployement.
In France your boss spends 8 K to give you a 4 k wage
@@RAPHAEL-di8hz that good old fat state pension for your greedy pensioners and their healthcare.
Quite wild that your country wants to DECREASE state pension age back to 60.
Do the French pensioners just hate young people?
@@inbb510 Pensioners are former 1960/70's communists students, they spent all their life trying to get the maximum from the state hoping the system will hold until they die, it is just normal in France
@@inbb510- The owner class & their unbridled greed has nothing to with this, right? It's always the greedy poor people's fault.
That is not the reason because even for side jobs like waiter at a restaurant the hourly salary is way too low although the social stuff is already paid by the main job. I saw people in the US getting $50/hr for a job that is paid 13€/hr here.
@@patriayvida6850 ,
That's just copium.
Aging population + low fertility rates + welfare state = high taxes for younger people + collapsing public services. To deny this (especially with France where they spend SIXTEEN PERCENT OF THEIR TOTAL GDP ON JUST PENSIONS ALONE) is just delusional.
And yes, it is the greedy poor people's fault as they are stifling innovation by demanding that money goes into their bloated pensions instead of giving young people the economic environment to thrive through innovation.
Weird tho, wages for many in Brussels (not talking eu institutions folks) are way higher than in London, especially if you’re one of the many Londoners not working in law or finance. And then there’s the cost of living in London
The UK is doing rubbish so it's shocking to hear Europe is even worse lol.
Its just one number, chill, ofc uk has to raise salaries since they cut off their unlimited supply of eastern European workers 😂
Europes fine
@@TheGahtaUK is doing better than most of Europe. Yes, wages have increased in part because of Brexit ... and that is a good thing
@@TheGahta cope
We are lucky to be living in the UK.
@@PhoeniX199777 vOv
If you need this to be true so badly, ill give you that illusion
Dunno man, I've bought my house for 200K EUR brand new. Can you do that in the US? Private tuition for my daughter is 300 USD a month. How is it in the US?
Oh yes, of course I can not buy a new SUV and the newest iPhone as soon as they come out but I DON'T NEED THAT SHIT.
Did you get your labels incorrect at 2:10? The chart indicates wage growth outpacing productivity growth while you say the opposite.
Yep they did mix up the labels. I've seen the graph before and red line is productivity and blue line is wage growth.
If I got more than 32k€ yearly in Poland, the surplus is taxed 41% (32 tax + 9 health insurance with no damn cap). It is not worth the effort and I prefer to go to park or play a game instead of going above and beyond in my job.
There’s no point breaking your back for a job that will replace you tomorrow and for shit money.
@@jimbomacers most companies will replace you with a cheap foreigner or with an AI or robot if they get the chance, loyalty is not rewarded anymore.
High taxes and a lack of flexibility in attracting external capital - that’s the issue. I’ve been waiting five months for a work permit in Spain, even though I already have a profitable business. Economic sustainability doesn’t seem to be a priority for the government, and I see many people choosing to leave for Asia, where starting and running a business is far easier.
On top of that, if you’re working on your own, just to hold ‘autónomo’ status you need to pay 300 euros every month, plus about 80 euros for an accountant - that’s 380 euros monthly. Add roughly 20% income tax and 21% VAT, and it’s no wonder people feel frustrated. Honestly, I’m really fed up with the situation here and the government’s approach.
The Spaniard have Beckham law, immigration services in Europe are overburdened because of underfunding and mass immigration
At least they treat big businesses well 🙃
VAT is paid by the customer, no? IF the products that you buy and used are part of the final product then you don't really pay the VAT, you transfer it onto the product, is that not the case? Cause it's one of the things I've seen here in Bulgaria.
Yeah, just checked it and it's called "deducting VAT" that comes off of the customer's payment when they finally get the product
@ yeah, I mean it makes your product more expensive, not every customer is willing to pay that, especially considering their wages. If fact most of Spaniard just avoid paying for stuff altogether, sharing things within communities
Croatia curently has a problem where the avarage yearly income is around 12 000€, the prices of food and goods are higher than in Germany, England, France and other EU nations...
same in the Baltics. Our restaurants cost more than in Paris 😅
Europe is too obsessed with having an old school export led economy. It just pushes the workers to have low wages to keep our goods competitive for old dying industries. We should look at service and consumption led economies like the U.S. for lessons
Not really, Europe is already mostly services. There are holdouts like Czechia or Germany, which still have heavily industrial economy, but those are exceptions
And destroy our planet even more? Yeah, great.
@TopHatLucario everything has a price
Hold on... worse than the UK counterparts? are you sure?
2:10
What kind of a major event could have caused this decoupling in 1971?
Yes I am looking at you Nixon.
Umm no, they are not low. We have much less terminally poor people than USA
At least in Germany, the taxes simply are too high. And not just taxes but several payments every citizen has to make that goes into government funds. Lower income tax as step one of 100.
Boohoo. Go live in the US. Ya wouldn't make it a month there. Ya would be running back to beautiful Germany and kissing the ground after ya returned!
@@TheAmericanAmerican are you saying the US has higher taxes than Germany?
@@khaoscero nope. It's just 2% lower gross. How do I know? Because I've worked on both continents. Therefore I know that me paying that extra 2% more in taxes in the EU is WELL worth it since my standard of living has increased 10x since moving to the EU almost 10 years ago. Call me crazy, but it's kind of nice when my taxes go mostly into things like healthcare, infrastructure, and education and NOT to military.
@@TheAmericanAmerican Not only that but you get WAAY better food with less trash in them here in EU than US ;-)
@@hadiamrane 100%! I lost 15 kg(33 pounds) since moving here and I LOVE to eat! 😁
Compare not the absolute productivity, but the relative productivity compared to cheaper labor markets given globalization, the productivity of third world labor has gone up so much that the wages adjusted for productivity relative to the wages compared to productivity in developing markets are still too high.
Everything goes back to housing. Your house is too expensive, so you spend less money. That means companies have to raise prices to make up for lost demand. That means less people can buy, meaning they have to further raise prices or lay people off. Those laid off people also have expensive houses. It's also true that, when those housing and food costs rise, employees at other companies will demand more money to afford to live in the area, causing further price increases. The most expensive input in almost any company is labor, and the overwhelming reason behind this is so people can afford housing. So, BUILD MORE HOUSES ALREADY. NOT THAT HARD.
It's not just the lack of housebuilding. It's also the fact that the rich are not taxed as much as they used to be. They use their extra money to buy assets like property, which inflates the price beyond what the vast majority of people can afford. They then charge those who can't afford to buy these assets as much rent as they can get away with, which sucks money out of the economy. The rich get to own more, the rest of us get to own less. Nowadays 'the rest of us' includes even quite well paid sections of the middle class who aren't fortunate enough to have inherited wealth.
@@moomie1634 I disagree. Houses are expensive in Paris, London and Zürich, where you get high salary. Houses are cheap in many places in e.g. eastern Europe. But salaries are shit, so people leave and flock to high income cities. What's the point of building a megacity, if it will just become an atrocity of commute? Perhaps we should instead address the problem of lack of well paid work in places where there are ample vacant buildings?
@@ArgumentumAdHominem What? That's not at all the argument. People move where the jobs are. You can't just pick up industries and move them. They need educational centers, government support, and a baseline of people willing to be there. Your argument on housing just ignores the fact that you can build up. You realize that you can, in fact, place a house on top of another house, right? It's called a condo, and many cities have them. You also have duplexes, triplexes, and quadplexes. The problem is that cities have blocked building almost anything, and the only things that do get built are single family detached, which are the most inefficient uses of land within cities. There's also this thing called commuter rail, which, when built, is significantly faster and more efficient for getting people into cities than cars could ever be, and can easily cut commute times from far out places. This isn't that hard. Developers know how to build things, and they've been pleading with cities to let them build something, while being blocked time after time after time.
I always wonder why people in west europe or USA rent so much or buy house.WHere does houses or appratments off your grandparents go ,why they did not left to you when they died,they for sure dont live forever
@@dzonikg the top percent just buy up all of them. Older people are also living longer, so their houses aren't going on the market. It's mostly that a small percent of the population owns a ton of houses, so when they die, they just pass down all that wealth to another small portion of the population. In a perfect economy, developers would just outbuild this demand, which would perfectly allow for a balance of supply and demand, but cities block that development, meaning demand far outstrips supply, causing issues
Hello from Spain.
If you couple workers wages with direct and indirect taxes it becomes very clear that productivity is punished. There is a point where the moré you win the moré you until you only work to pay taxes. We only feed the Machine not our families😢
I’m from Portugal people say we work almost half the year to pay taxes but I also hear similar points from the USA so idk if taxes are really the problem although it probably has some impact.
In the case of my country I know our problems and is mostly because what we produce aka low margins products.
most business owners don’t like to modernize,improve,change.
Laws are just suggestions most of the time.
Everyone wants to up each other on bs topic instead of cooperating.
Employees are like a burden and hours worked is more valuable than more work done.
Big companies have monopolies/oligopolies over the country,small to medium company don’t want to improve unless the eu pays for it.
Since we attracted tourists,expat investors thru real estate, digital nomads paying less taxes than locals although they discount higher amounts, mass immigration where most work minimum wage for those that talk our language and gig work for those that don’t with a excuse of our people not wanting to work.
So older people retired pr are waiting for it and young people emigrate to Switzerland,Benelux for example.
I know Spain problems are similar to us but your market is bigger just like Italy
Yeah, real wage compensation is before taxes, our wages has not grown while our productivity has, thats the real problem
Have you thought about building something instead of being a drain on society?
Why so low? Taxes taxes taxes! Glory to the Socialism!
it's not that, just google tax comparison between Europe and USA it's super similar.
@@MsCharlieTramp Maybe, but what about VAT? VAT in Europe is among highest in the world. I pay 23% VAT. Plus we have most expensive electricity in the world which raises the cost of basically everything…
Yes socialism is when the working class is taxed 40-50% and corporations never pay their fair share (in fact literally 0 taxes).
Well done! That is definitely socialism, not neoliberalism. 👏🏻
Or maybe because the top 1% are getting richer while their workers don't have higher wages which increases inequalities. Glory to capitalism
try to sell cheaper goods abroad - lower your revenues - lower your workers' wages - they have no money to buy goods - you have to sell more abroad...
What a beautiful vicious cycle.
The cost of living is generally lower than in the U.S. However, keep in mind that Europeans often pay higher taxes, which help fund benefits like free healthcare, retirement funds, education, and generous unemployment support. European cities are also well-connected, with efficient public transportation, so people often don’t need to own cars or pay for gas. Additionally, even though wages are generally lower in European countries, they enjoy a higher quality of life and report being much happier than the average American. Benefits like 30 days of paid vacation, maternity and paternity leave, and medical leave contribute significantly to this quality of life.
That's fair enough but when you take into account the 'cash value' of such benefits, the discrepancy still exists.
Dont forget the money pits like Ukraine and welfare state for all those imported doctors and scientists from the 3rd world :))
Public welfare programs like Free healthcare and public pension funds are not sustainable in long term if you have low wages, high taxes and low birth rate all at the same time.
I am a non-Eu doctor. Germany is practically laying red carpet for people like me due to the severe shortage of healthcare staff. But I would be out of my mind to spend 1-2 years of my life learning German language only to get paid 1/2 compared to Canada, 1/3 compared to Australia and 1/4 compared to U.S while paying double the taxes and quadruple energy bills. I know more German doctors working in U.S than German doctors in Germany. If you can’t fill the healthcare jobs either internally or externally, your “free” healthcare system won’t last long.
Productivity rose, while wages remained low. Now, who got to pocket the difference in that equation? 🤔
In EU we have American prices (sometimes higher) while having lower wages than American.
yeah, in Poland we have European prices and Ukrainian wages
I don’t think we have us prices in most things not even close but I have Central European prices with Eastern European income 😂
Yeah, I mean we Americans are complaining about high gas prices when its like $3 a gallon or like less than a $1 a litre.
@@kamilantkiewicz7083l went to Poland recently after years away. I was shocked by how much food prices had gone up.
@@santostv. You'd be surprised how in my Country we have US/UK prices for goods and yet don't even make 2k a month. Not to mention that something like Iphones are EVEN more expensive here and the food prices are basically the same as US. You can definitely find products that cost the same as US and maybe even higher quite often
The title is misleading. Yes inflation had negative effect on our purchasing power but the wages are not "so low". Grouping all European countries together is nonsense as well. There are wild differences on how different economies dealt with pandemic.
If you want real answer to this problem, EU has to prevent US companies buying out the competition in all the industries. I don't think this causes major differences between normal people in average positions but it skews numbers at the top end because of profits centralized in US.
Because we must provide our overlords with more properties to rent to us at insane rates, yachts, jets and their annual 2+ mansion & island purchase.
I'm in my late 20s and I've never had a 'good' job. I guess good managers + good work planning + good working hours + good salary is a fairy tale thing.
Depending on the salary number I'd say I have all those things.
@@modarkthemauler Good for you. I hope we can move towards a Europe where the labor market employees of all member countries can state that.
I wish TLDR would make up their minds and be consistent on this.
Wym
They make content to make content, and saying Europe = Bad is easy clicks
@ usually there are pro EU.
Besides if you’re right they could easily be consistently saying EU=bad, but they don’t.
But but but Brexit!!! UK wage growth should be lower than EU after Brexit, not higher!! Damn Brexit!!
No tech industry
No innovation
No venture capital
mass immigration and the law of supply and demand.
You forget the rich can easily move and hide money and investment that's also an issue, even though they make money off service consumption within Europe and UK.
No innovation? We are top ranked in innovation. No tech industry? My 10 million population country have more video games then entire US. Where do you get these statistics.
Europe was often in a state of stagnation before the wars; it feels like this cycle is starting all over again. Be one of the richest continents, take a hit, then have people finally turn their minds to regaining that comfortable life they once had.
😊@@spacetime3
Got told by my hotel manager that our wages, housekeepers only are too high.
Underpaid, undervalued and under apriciated
Then leave and get another job if the market pays better.
Who would have guessed, that consumption taxes and CO2 emissions tax, that are made to lower consumption, actually lower consumption
It's like raising the tax on alcohol to reduce consumption and make people healthier but expecting people to drink the same amount so the government gets more money and then having a deficient budget when people drink less.
Consumption taxes are actually a good thing. You see, only what you consume gets taxed, and the rest, things that you save or invest into some funds, bonds or stocks are not, but the money returns into economy anyway. And if you need to throttle your taxation for one reason or another, you can simply cut on spending to a point. This doesn't happen with income taxes, so I'd rather see them go and double the VAT if need be.
@@looseycanonthe economy needs consumption because that stimulates production and the economy == production of goods and services.
@@ronald3836 Except you can export production, that doesn't get realized in the local market. The reason consumption taxes are better is, that you are in control of your taxation, so if you chose to save, for instance, because you're expecting a large unavoidable expense, you can actually use the financial market and use compound interest to help you earn the money you need.
I saw a chart that said that the GDP of Europe and America was about equal 15 years ago and now the GDP of America is 50% larger. So they’ve had very little growth in the past 15 years.
Mass and illegal immigration of cheap third world labour is what keeps wages down
Your boss willing to exploit cheap third world labour is what keeps wages down.
@@redderthanmisty6762 Yup, that is why all major corporations are pro mass immigration and why they only donate to left wing parties...
Your country’s companies shift their production plants to the third world. Immigrants coming into your 1st world country are losing out on the job markets your employers are moving, from your country to the third world 😢😢😢 if only your companies were loyal to yall instead of moving jobs away from your country
Two main reasons, copyright and privacy. Copyright laws make it very difficult to do anything like make a large company like Google in Europe and privacy legislation makes making a service like the Facebook impossible AND it makes European consumers "less valuable" for advertisers. The immediate shock of the G.D.P.R. was a 20% cut of almost all E.U. online companies, but it has also essentially slowed the growth of European digital market.
Nonsense. These are excuses. No innovation = no growth.
Consume? We consume enough- or too much for our share of resources… this economic model is not sustainable and needs to change. Definanceatzion now 👏
We really don't. Most people don't invest or buy a fifth of what they want and instead need to save years just to get a car. Rich folk consume whatever they want though, so you might be live in a bubble
Have you thought about building something instead of trying to consume less?
You guys only buy necessities because that's all you can afford.
Your labor trends chart is deceptive because it’s only through 2015. USA productivity growth 2019-2024 averaged 1.8% annually. The average from 1947 through the present was only 2.1% annually. There has been no significant decline in American productivity growth.
Innovation is low, paperwork and red tape is extremely high which caused this.
It's funny that when someone talks about Europe they mostly refer to West Europe and almost completely disregard East Europe like we don't even exist :D
We have better labour laws. We don't over consume as much. Our taxes are better utilized (healthcare, duh). I do think we need to bring tax down and pivot investment from welfare to economic growth for a while, but let's not become the US, thank you very much.
@@fernandosegala3964 Right, but you're presenting a false dichotomy here. One could investigate the causes behind American wage growth and attempt to recreate that success, without adopting the American economic model wholesale.
Healthcare = More taxes for healthcare for pensioners with their already high State Pension payments (also from higher taxes) and are prioritised in the waiting lists.
The high income in US is just on paper. Poverty is very high in the US. Even peiple with 5K income are struggling there
That explains why the usa is more dynamic imo not salaries
Idk about every eu country but if companies want to have lower employers protection they hire you as a contractor ,I know the uk also does it although they compensate with a bit higher salary.
I think most Europeans aren’t against taxes if they get what they were promised from it, even with a rethoric coming from usa gurus.
Investments imo some countries like mine have local monopolies/olygopoly that put up barriers to competitors usually European ones, besides bigger countries or countries sandwiched between bigger countries have smaller markets leading to not being fisible to create a competitor.
Despite everyone using tech/software most European are more opposed to and now with a aging population is probably even worse, big countries like Germany are really opposed to it compared to small countries like estonia or even sweden.
We are a bunch of individuals countries,functioning at different levels although a lot of people compare to the usa having different states the dynamic in Europe is very different.
How we did it before 08s? i bet it was because the world was slower giving time to companies to adapt but nowadays the mentality is break stuff and worry about it later
@@Astke There are no problems that US workers suffer that the EU doesn't have also.
Yeah... both times I've had a job offer from Europe (Sweden, Spain) I've had to turn it down. Either the salary was too low, or the taxes were so much higher, that I would just be so much worse off than in the UK.
We seem to have an okay middleground of wages being high, taxes being middling, and public services being okayish.
Europe doesn't have a competitive digital and high tech sector like it used to in the 20th century. We still produce fashion, cheeses, wines and luxury goods instead of software and IA companies. Case closed
The most high-tech chips in the world are made in Holland and the machines that make them.
@@bishtonthe exception doesn’t make the norm. All over the EU there is a huge lack of high tech and software industry. Tiny Israel has more high tech companies as a percentage of its GDP than the whole mighty EU. Even Germany the biggest EU economy is lagging behind the digital economy.
EU has an initiative for businesses to develop AI powered technologies. My employer won a scholarship despite having absolutely 0 plan how to use it. Anyone can grab it!
Nobody is going to buy luxury goods if they can't afford it. Even the previous wealth and rich Chinese are stopping buying now that their own economy is doing bad.
We don't consume enough, because we have no money! Export driven economic model has suppressed wages for decades to remain competitive, while food, housing and services spiraled out of control!
"Europeans don't consume enough"
You can blame greedy landlords and food companies for that! When my monthly salary goes up by 60€, but rent + food by 100€, i simply have less money to spend. For example, the cost of some basic foods like potatoes have DOUBLED in the last 5 years in my country.
you can't force Europeans to spend more lol. If times are uncertain and inflation is high you are not spending. And that is not the average citizens fault.
The thing that people do not understand (or they pretend not to understand), is that real productivity follows improvements in mechanization, automation, simplification of bureaucratic tasks and digitalization. Companies that have abundant workers that receive a low salary to perform their work, have no reason to invest in more efficient machinery and improve production methods, so productivity stays low.
Higher salaries and shortage of workers forces companies to mechanize and automatize further their operations, which increases productivity, not the other way around. So if you want more productivity per worker in a country, increase the salaries by law and give incentives to companies to mechanize, automatize and digitalize, plus invest in a good renewable energy plan to make sure energy is abundant and cheap.
Low wages is the cause of low productivity, not the consequence.
but where the low skill workers are supposed to go? I work in said automations solution company and our clients usually fire at least a part of their old staff. Low birth rates are low key a blessing for them, but imagine that we do not and/or immigration would get even worse.
Unfortunately renewable energy isn't all that cheap in most parts of Europe. Sure, it doesn't cost much to generate, but the costs of compensating for intermittency and providing constant reliable power for industry add up.
@@Croz89 Renewables are the cheapest source of energy in all European countries, with no exception.
@@pedrolopes3542 If you only consider the cost of generation, sure. But if you factor in the cost of transmission, gas spinning reserve and/or storage that changes. Europe hasn't been pouring subsidies into renewables for no reason.
Really? UK doing better with the wages? Let's see the OFFICIAL DATA from the Wikipedia then shall we?
Monthly net salary in Europe :
-Germany = 3118 euros
-Austria = 3269 euros
-Netherlands = 3145 euros
-Denmark = 4013 euros
-Ireland = 3105 euros
-Sweden = 3335 euros
-Norway = 3507 euros
-Iceland = 3466 euros
-Switzerland = 5674 euros
-Luxembourg = 4224 euros
-UK = 2668 euros.
Shell we look at the GROSS monthly salaries across the western Europe?
- Germany = 4924 euros
-Netherlands = 4191 euros
-Denmark = 6294 euros
-Sweden = 4327 euros
-Norway = 4745 euros
-Finland = 4112 euros
-Ireland = 4172 euros
-Iceland = 4848 euros
-Austria = 4779 euros
-Luxembourg = 6327 euros
-Switzerland = 7223 euros
-Belgium = 3886 euros
-France = 3530 euros
-UK = 3369 euros.
UK doing better with the wages? Are you ok my friend? Better than Italy? Maybe.
Do you KNOW that currently PPP VALUE of the average monthly net salary, adjusted for the LIVING COSTS of Spain is 3345 dollars and for the UK it's 3178 dollars? In Spain REAL WORTH of your salary is literally HIGHER than in the UK now. UK ain't doing good with the salaries at ALL compared to the WESTERN Europe. In fact, it's doing INCREDIBLY bad. And PPP worth of the salary in, for example, Croatia is 2845 dollars now and in Poland it's 2780 dollars, in Romania it's 2469 dollars, in Montenegro it's 2220 dollars and in Portugal it's 2149 dollars. It just shows that in cheaper countries of Europe standard is MUCH higher than reflected by the OFFICIAL salaries, cause things are CHEAPER.
Inflation, stores and real estate have eaten that money.
@racimegacar Inflation was WORSE in the UK and for a longer time than in the EU. We can look at the PPP (adjusted for the LIVING COSTS) value of the average monthly net salaries in Europe :
-Germany = 4667 dollars
-France = 3556 dollars
-Netherlands = 4199 dollars
-Belgium = 3450 dollars
-Austria = 4484 dollars
-Switzerland = 5442 dollars
-Denmark = 4424 dollars
-Sweden = 4389 dollars
-Ireland = 4196 dollars
-Iceland = 3741 dollars
-Spain = 3345 dollars
-UK = 3178 dollars
-Croatia = 2845 dollars
-Poland = 2780 dollars, etc.
Hey even ex communist Europe is catching up with the super expensive UK, by the PPP value of the average monthly net salaries! While the entire western Europe is waaaay ahead of the UK.
6:50 this is basically all the time
"World is collapsing, economy is fucked up, democracy is in free fall... except for Scandinavia"
Norwegian here - we are also currently being screwed over by useless government. But I see a bright future here as the Dubai of the North. We just need to sort out a few cultural issues first.
And yet the British wages are still weak to afford stuff in the UK because in the EU a lot of stuff is affordable such as public transportation and better infrastructure.
Saying "well its not as bad as them" is such a pitiful argument, if you don't like the data, then dont watch the video.
Germans, French, Italians, Spanish, pretty much all of Europe has good living standards compared to most of the world but they know it can be better, saying 'Poland is better' isn't gonna make Poland better than Germany or France or Switzerland, Norway, Finland, neverlands, Austria etc.
But hey, if you want to just keep lowering the standards to make Poland seem better without actually adressing the problems then it will always been playing catch up to western Europe.
(Germany in particular 🤣)
@lunkycultist5519 I mean most major EU countries are far ahead in terms of infrastructure and transportation compared to the UK. No need to cry about it
@KSzkodaGames Except compared to its nearest neighbour France, UK grocery prices are 23.6% lower than in France, while local purchasing power in the UK is 15.9% higher than in France. ...11 Aug 2023
@@BLACKSTA361 Exactly when will the UK reduce the Train Ticket prices while Germany and Portugal introduced Monthly memberships to have unlimited train journeys across the across country.
@@BLACKSTA361 Exactly when will the UK reduce the Train Ticket prices while Germany and Portugal introduced Monthly memberships to have unlimited train journeys across the country.
I would be willing to bet that Brilliant could not teach me about the design parameters of musical instrument strings, but I learned them with out brilliant. And with out any other authoritarian entity.
I nearly doubled my salary (2850 pre tax to 5450) in the past 3 years and I still barely scrape by... It's such a shame how expensive everything has gotten.
Productivity goes up, wages do not. It’s almost like the extra money these companies make is being kept by a specific group of people….
Just a thought
Because the EU was never able to develop an indigenous tech sector, Europe isn't one country and is separated by different languages and regulations with the added EU bureaucracy
If the EU wants higher wages, it needs a thriving tech sector and create thousands of billionaires and unicorns
That will require Europeans to not hate billionaires and rich people.
Despite what the internet may tell you, Americans are pretty affirming of other people trying to get rich.
I am working on a plan to bring tech companies to Eastern Europe. I am Alexander Julius von Mannheim, Ursula von der Leyen's deputy and head of The Bureau EU's equivalent of the CIA.
That has nothing to do with low wages. Those leeches wouldn't do anything for the economy
@@geminusleonem9365 Maybe not but I am tired of the EU being blamed for everything.
@@geminusleonem9365 Billionaires own companies which produce products which make money which is then paid to workers which then allows workers to buy things to consume which then feeds back into product production.
That's how the economy works. Without the guys on top there is nothing trickling down to the bottom. What makes it work or not work is your economic policy and regulations.
The rate of productivity growth since WW2 has largely been influenced by the two most recent industrial revolutions. The positive impact of the 2nd industrial revolution (electricity, car, planes) was felt between 1945 and 1975. The positive impact of the 3rd industrial revolution (computers, Internet) was experienced between 1990 and 2005. Productivity wouldn't increase in the mature, rich economies until the positive impacts of the 4th industrial revolution (AI) kick in.
Dude your talking 20+ years ago. That’s the problem, Europe is asleep.
@@Pete_YT Europeans did not make enough babies
@Pete_YT Innovation is a key component of productivity growth, and the trends I summarised are real. The US is ahead of Europe when it comes to the emerging 4th industrial revolution. However, Europe will undoubtedly benefit from it, but perhaps to a lesser extent. The US has been a leader in 2 of the past industrial revolutions, with the UK leading the first. No doubt the US will continue to lead the fourth industrial revolution too.
Lenin: abstract financial products are more valued than real production… not to mention c-suite compensation exploding. That’s a big part of where our raises went.
You said wrong based on your own chart: at min 2:15, the Chart shows the productivity increased by 54% and the the compensation increased by 175%. You said just opposite.
Income taxes are too high, people are not motivated to work more to increase their wages.
you work more you get taxed more, great socialist communist system.
European wages low... Europeans not consuming enough.... Rents and housing on the moon
European politics: I see no connection here but we should raise retirements and support old