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That's because good safety nets means people don't have to take risks on business. So that leaves only the people who want to start a business. Who tend to lea
by jotm 5y ago
That's because good safety nets means people don't have to take risks on business. So that leaves only the people who want to start a business.
Who tend to leave for countries where it's easier to run a business and where they don't have to pay for the safety nets, but that's besides the point.
As for freedoms, I don't know. Not that much of a difference between US, UK and Germany from what I can tell.
- WalterBright 5y agoWhy are the FAANG companies all based in the US?
- ZeroGravitas 5y agoSame reason they make most of their physical stuff in China. The government allows the most abuses.
- disgruntledphd2 5y agoLarge amounts of venture capital from US investors, a really large monolingual market and path dependence. More generally though, relying on outliers for your argument is perhaps not the best approach.
- WalterBright 5y agoOutlier? FAANG is just the top of the market. Companies are started in the US and grown because the opportunity to make money is much greater. Venture capital? An awful lot of the venture capital comes from foreign investors. Monolingual? The global business world runs on English. Outliers? When it's all of them, the idea it is a coincidence starts getting pretty unlikely.
- disgruntledphd2 5y ago> Companies are started in the US and grown because the opportunity to make money is much greater. I'm not convinced that this is the case. Like, the US market is cheaper to operate in relative to other markets the same size (e.g. the EU) because you have an over-arching system of laws, contracts and (most importantly) language. If your theory is correct, then one would expect the US to remain the largest source of profitable companies globally. If my theory is correct, one might expect China/India to take it's place. Come back in 20 years, I guess? > Venture capital? An awful lot of the venture capital comes from foreign investors. Can you point to some sources on this. A quick Google didn't reveal much information, and I really would like to know. Modulo Softbank, I suspect that it's mostly US based institutions giving VC's their money. > Monolingual? The global business world runs on English. All of the big companies you mentioned sell to consumers, not businesses, so the global language of business is kinda irrelevant. My point was that the US is a relatively integrated, large market with one language. Most startups begin in their home company. While a startup from Greece would likely have to hire more people to scale across the EU (20+ languages), the equivalent US based startup can scale happily without worrying about languages for a much longer period. > Outliers? When it's all of them, the idea it is a coincidence starts getting pretty unlikely. FAANG are 100% outliers, I don't see how you can believe otherwise. However, Europe has produced SAP (uggghhhh), Spotify, and a bunch of second-tier fintechs (but given the regulatory advantages of the EU in this space, I suspect one of them will conquer the world).
- WalterBright 5y ago> Can you point to some sources on this. No, but I've heard it many times. I've also seen plenty of talk about the trade deficit not being a deficit at all, as the balance is foreign investment in the US, which is not counted. > so the global language of business is kinda irrelevant Attend a trade show. They're in English, even in foreign countries. Every single one I've attended. The bottom line is, which companies do you invest in?
- nebula8804 5y agoThe US is the last man standing in the west that still employs these legacy policies. Where are they going to go? China?