> that supports a business losing 500 million dollars a year for 10 years.

That assumes that those startups get investment from outside YC , which is not what i m talking about. Also, the EU just approved a giant stimulus package which will be used to support a lot of failing companies, just take a look at the air carrier subsidies around the continent.

It's true that US is subsidizing unsustainable businesses, probably in the hopes that something good will come out of them regardless. But that doesnt change the fact europe is repelling entrepreneurs.