4 ms·
> Labor is more expensive in Europe probably because the pool of workers is smaller due to mandatory retirement age. Labor is more expensive in Europe because
by Proziam 6y ago
> Labor is more expensive in Europe probably because the pool of workers is smaller due to mandatory retirement age.
Labor is more expensive in Europe because of taxes, primarily. The fully loaded cost of a professional employee is often double their salary, and sometimes more.
- baron816 6y agoTaxes to pay for pensioners, mind you.
- Proziam 6y agoUnfortunately that system isn't working for everyone. If you track the economic power of a country like Germany, their people should be wealthy beyond reason. Instead, the people are becoming poorer each generation. https://www.dw.com/en/poverty-increasingly-threatens-elderly-germans-says-study/a-50393805 https://www.dw.com/en/poverty-increasingly-threatens-elderly...
- pasabagi 6y agoThis seems like a typical outcome of Germany's approach to welfare in general - everything is extremely granular. Depending on what you're paid, how you work, and how long you've been working, you can expect utterly different benefits across the spectrum. Coming from a country with a flat pension, the difference is visible. There are a lot of really poor old people here. Then again, there are many fewer really poor young people.