Why are tech salaries so low over there? I’m the US you will break $100-120k USD as a recent graduate even in parts of the South and the Midwest with lower cost of living.
2. It's also dozens of markets when selling products. As much as the EU tries, functionally there are still barriers to trade across the EU, let alone places like the UK. Stuff like language, culture, religious practices all impede easy scalability, not to mention differing laws.
3. The US is a continental-scale superstate mercifully isolated from most of the world's wars. Europe is not. It's that much harder to grow the amount of capital North America sees when the continent is split of more than often at war with itself.
Also education is paid for by the state. In the USA I heard people pay off study debts for many years and are thus also forced to look for high paying jobs
I don't think that Germany will ever catch up tbh. There is no incentive. Once you earn a little more, the progressive tax rate is too high and eats everthing away. Less people pursue engineering in the first place, because net wages are so compressed. Also just look at real estate.
Munich:
- Median house price: USD 1’534’933 for ~1500 sqft
- Median salary: USD 59k pre-tax.
The pension system will break in the next decades. Actually it already is.. it is already heavily financed by other taxes.
This country has other perks like more vacation days, but making bank is definitely not one of them tho.
Many academics emigrate to Switzerland, USA, Netherland or Canada - me included.
US tech salaries are also distorted due to VCs having more cash than they know what to do with, bidding up salaries to compete with FAANG.