That's a non sequitur. Just because something is dangerous doesn't mean that governments should be able to regulate it. Often the "cure" is worse than the disease and the last thing we need is more intrusive government power.
Just because something is dangerous doesn't mean that governments should be able to regulate it.
That is...literally the point of government...
If you meant, that something shouldn't be banned just because it is dangerous, most people would agree with you. But almost everyone would agree that regulation of dangerous things is essential.
No, that's incorrect. You appear to have made a category error. Regulating dangerous things is not the point of government. Please review the Declaration of Independence and the US Constitution.
No, that's incorrect. You appear to have made a basic error. Regulating dangerous things is part of the point of government. Please review the U.S. Constitution.
The preamble of the U.S. Constitution literally states that part of its purpose is to..."promote the general Welfare."
Actually real wages have increased a lot since the 70s if you count employer contributions to employee heath insurance. The problem is that a lot of that money is being wasted by an inefficient healthcare system, and employers probably shouldn't even be involved in sponsoring group health plans in the first place.
Employers paid for healthcare in 1970s too, and even for higher percentages of the workforce. If there is a premium inflation surpassed the CPI, that is still inflation, not real growth. If there’s an inflation problem in delivering a temporally comparable service, that is not a “real wage” item for the employee [1]. So what the nominal figure today shouldn’t be relevant.
I agree it shouldn’t be an employer item too, but whatever employers lose on premiums, they get more on an overall stickier and cheaper labor supply.
[1] one could argue the productivity of healthcare increased, and the data indeed supports this with the overall life expectancy increase from 70s to now mid 70s plus quality of life treatments. But again most of the spend is actually on the tail end at this age group, which raises the workers’ premium without delivering the benefit. Therefore not much structural gain for the actual working age employee.
I don't understand your point. Very few people in their 70s have employer sponsored group health insurance. Most are only on Medicare, perhaps with a commercial Medicare Advantage or Medicare Supplement plan.
My bad, skipped a chain of thought there. Since medicare pays less than private insurance, hospitals can and do shift costs (which in reality is "opportunity cost of profit") to the latter, which pushes to private premiums up. Regardless, this is a minor effect. Very little of the inflation is justified with productivity gains, as you said it is a very inefficient healthcare system. US prices clock 2x-4x of comparable OPEC peers, admin percent is higher etc.
>if you count employer contributions to employee heath insurance
You shouldn't.
>and employers probably shouldn't even be involved in sponsoring group health plans in the first place.
They are free to lobby for socialized medicine, but they don't because they like how the current system helps lock employees into bad jobs for any amount of healthcare.
If you're trying to understand changes in the share of income going to workers versus employers, then you must count those contributions. For the average family, employers pay $20,143 annually in premiums: https://www.kff.org/affordable-care-act/annual-family-premiu....
From the perspective of the employer, that's real money, no different than if they had paid the $20,143 directly to the employee as wages. It's not the employer's concern what happens to that money after they fork it over.
Maybe people would view it more like that if they actually had the option to get paid cash instead of an insurance plan of the same supposed value. With some employees that is possible to negotiate, but for the vast majority of employees with a healthcare plan that is a big no unless they are willing to accept a tiny fraction of the insurance value.
Shockingly, I don't believe the results will be anarchy and constant regional conflicts. But it's interesting that some people still seem to believe the US idyllic propaganda about how safe they're keeping the world.
They didn't run out of money just because they fought two wars. For some bizarre reason the UK has simply chosen to be (relatively) poor instead of embracing a growth policy. Despite all their potential advantages their GDP per capita is about equal to the poorest US state.
It's actually a fun demo, that shows a fairly common difference between Europeans and Americans. The demo is mostly about comparing GDP, while HDI or something else more "human" is left as an exercise to the reader. If someone was doubting Americans only care about money, now you have some more evidence :)
This comment feels in bad faith. There are ~340 million Americans and you draw evidence about all of them from this one thing? It's not even an insight into its single American author. It was a quick weekend hack.
The purpose of the thing is to try to put things into perspective, like "Portugal is about the size of Indiana", or "California's economy is about the size of Germany". It compares three numbers, two of which are not money!
I'm not drawing evidence or making an argument in some parliament, it's an offhand comment about a common behavior I keep seeing repeated, basically me sharing a pattern I seem to notice every now and then.
I'm not trying to claim every American only care about money, only that when Americans compare countries, they tend to compare monetary values like GDP, gross salaries or other similar values, and your weekend hack (cool at it is) fitted that pattern I've seen before.
Again, obviously not all Americans are the same as each other, then elections wouldn't be needed for starters, and I'm sorry if my comment came off as dismissive or harsh, it really wasn't my intention, I just aimed to share a reoccurring pattern I come across.
Yeah, money machine go brrrr is a great sign of "footprint", lets just ignore millenniums of inventions, technology and others things coming from Europe, before the US was even a colony. Texas GDP was $x millions last year, clearly larger footprint on the world :)
It's actually pretty fun and interesting the different bubbles we all live in, for better or worse.
This is actually the reason why I'm a proponent of the US Federal government doing far _far_ less. Things like Healthcare and other safety net things (along with most other things) should be done at the state level, and the the fact that European nations, which are near universally poorer than all US states, are able to do these things, are the proof that this would work.
I'm convinced that the federal government doing more and more things is the root cause if the increasing toxicity of American politics. The further removed a populace is from their representatives the less control they have and the worse they feel. Everything should always be done at the most local level that it is possible to do it. Some things have to be done at a relatively high level, but Americans have increasingly been jumping straight to "this is a job for the federal government" when very often state, or even city governments in some cases, would be perfectly capable.
> which are near universally poorer than all US states, are able to do these things
What do you mean that the countries are poorer? Are you just thinking about the gross salary people get per month, or is there something else in this calculation?
The fact that people get health care, parental leave, can freely move between countries, able to afford having a child, have emergency services that arrive relatively quick and all those things mean that a country is not poor, and the countries that don't have those, are "poorer", at least in my mind. When I think "poor country" I don't think about the GDP, but how well the citizens and residents are protected by ills.
I know you've made a handful of comments all to this effect throughout the thread, but it's really not helpful in this particular comment chain. Yes, we know your quality of life in Europe is great. Yes, we know life is more than just GDP. "What we mean that the countries are poorer" is obviously GDP in this comment chain, and this comment chain is not disputing your quality of life, it's pointing out that we (collectively) have the money to have that quality of life here in the US, too.
But thats a flawed metric. How much cash do you need saved to send 2 kids to university in US vs typical Europe, without burdening them for their best years of life with crushing debt? How much is left afterwards? How much after acquiring some long term illness with expensive treatment or being in bad accident? Don't think that due to being young this ain't your concern, all elders have messed up health in many ways. Retirement. And so on. These are direct costs and its all about money. Ie US couple with teens just about to go to college with say 500k are same or poorer than similar family in Europe having say 200k savings, or will be after few years. Or maybe not, depends.
I'd say its uncomparable directly, or very, very hard. You can say visit both places and walk around and see the general state of the country and its people, compare capitals. This is where money is spent (or not).
Not going into happiness, stress levels, depression/anxiety and meds consumption, obesity levels or longevity, that would be too easy I agree. Although this is also money related, more than anything else.
80% of US college grads have debt under 30k. Despite the bleak picture painted, servicing that interest at say 7% is $175 a month, or about 3.5% the average salary of a new grad.
This pales in comparison to some of the elephant in the room ways most common ways to go broke, which is to say get something like a child support judgement against you (20% pretax, like 26+% post-tax in middle income brackets) or have an alimony payment (these conveniently don't generally show up in bankruptcy statistics because they are not dischargeable). Medical debt can at least be discharged in bankruptcy.
The federal government has no constitutional authority to provide universal health care, per the 10th amendment which leaves an extremely narrow constraint of enumerated powers to the federal government and the rest left to the people and the states.
However, the feds already siphon about as much tax as the populace can bear just on accomplishing what it is allowed to do, so there is basically nothing left for the states to implement these kind of measures.
Yes, if the states were to take over many of these things, obviously federal taxes would need to dramatically decrease (luckily, the vast majority of federal spending is doing the things that I think states should do anyways, so you'd be simultaneously dramatically decreasing federal taxes and federal spending).
You couldn't just have the states take over these responsibilities and have nothing else change. My suggestion is in fact a pretty radical change in how the US federal government works. I'm not under any illusion that this is likely to happen. The ratchet of power unfortunately only goes in one direction.
Our GDP would drop several percent if we fixed our healthcare system. Part of why we look richer on paper is that we light a lot of money on fire for exactly nothing.
Ah, there’s always zero-sum competition for housing to eat up any excess that might otherwise go to savings. That’s true. Money gets freed up across the board, you spend it on housing or lose ground in the housing competition. Good ol’ red queen’s race.
We already do have universal health care for the most expensive groups to insure (lower income households and the elderly), and technically have it for everyone in that hospitals aren't allowed to deny life saving care to anyone regardless of their ability to pay (which is expensive, short sighted, and quite inadequate overall).
Adding the rest of the population to the existing public insurance system would not cost much financially, but it would be a political catastrophe for whatever party implemented it if it didn't go well.
In short, I don't think anyone seriously argues the US can't afford universal health care, but the real and perceived risk of change is seen as too great politically.
The American government spends an incredible amount on healthcare already. If it were competently administered, it would already be enough money to cover universal healthcare.
Which buyer are you referring to? Consumers paying cash can negotiate as much as they want, and often secure large discounts. Commercial health plans also negotiate hard with their network providers, although some of them play unethical tricks with PBMs to artificially inflate prescription drug prices. Medicare and Medicaid don't really negotiate with providers, they just set rates by arbitrary fiat and providers can take it or leave it. Medicare does have some statutory limitations on how they can negotiate drug prices, though.
Which doctors? Some specialists do quite well but many primary care physicians earn less than software developers, especially once you account for education expenses and ongoing mandatory professional expenses. What is the correct amount for them to earn anyway?
Who is fetishizing GDP? I've never seen public policy be set based on the goal of maximizing GDP to the exclusion of all else. You're arguing against a strawman.
It's worth pointing out this happened entirely post 2008. This is not some "decision" people took, or some long term loss of empire. The US recoevered from the 2008 crisis way better than everyone else, and nobody really understands why yet.
A country with a business friendly, low regulatory environment, coupled with a high work ethic and poor work/life balance, if nothing else, is not going to be a country that falls behind.
Americans complain a lot, and the system isn't that comfortable or respectful, but they aren't facing existential economic irrelevance.
Quite the opposite. The US quickly recovered from 2008 thanks to tech. Tech that the rest of the world wasn't able to keep up with thanks to it being a heavily regulated environment (patents, copyright, etc.).
You would be hard pressed to find anyone who claims the EU has a "Tech Friendly" environment.
Every techie with skill and an idea in the EU said "F-this, I'm going to the US to start my company" which lead to others saying "F-this, I'm going to the US for tech work". There is no one to point the finger at, because even today, this is exactly what Europeans want. They just haven't put the pieces together to link "heavy regulation and very worker/consumer friendly environment" with "Nobody wants to plant their seeds here". Instead it seems the EUs plan is to just continually fine foreign tech companies to make up for the barren infertile business lands they cultivated.
Germany is a borderline shrinking economy with workers averaging 400 hours less time at work per year than their American counterparts. And this is celebrated like it's some kind of triumph. Everyday I wish I could violently shake Europeans and beg them to open their eyes. Economic strain will fracture all of Europe.
The only hope the EU has is that Trump fucks up the US enough in the next 3 years that we aren't able to continue to attract the vast majority of the people worldwide who actually want to work and reap the rewards of their efforts.
The EU has chosen stagnation, which seems fine at first but looks worse and worse as all the people (or nations in this case) who didn't make that choice continue to grow. Unless you have a closed, close knit community like the Amish, stagnation does not end well.
> with workers averaging 400 hours less time at work per year than their American counterparts
If true (seems dubious to me), that's a ~20% difference. The difference in wages is a lot larger than that though, at least for tech workers. So that doesn't really explain why German tech can't compete against US tech.
Also, there's quite a bit of evidence that a better work/life balance improves productivity.
I think vacation time is a red herring. My guess is that the various forms of worker protection, making it impossible or very laborious+expensive to get rid of disfunctional team members, are a much larger factor.
But also, let's not forget that the major difference between the state of the economy in the US and the EU is Silicon Valley. Without its tech companies, the US doesn't amount to all that much anymore. This could also be explained as a historical fluke with lots of momentum.
> If true (seems dubious to me), that's a ~20% difference. The difference in wages is a lot larger than that though, at least for tech workers. So that doesn't really explain why German tech can't compete against US tech.
1805 for the US (slightly more than the OECD average) vs. 1335 for Germany, which works the least.
Germany can't compete with US wages in tech because their companies don't generate as much revenue or profit, either per employee or in total.
> Also, there's quite a bit of evidence that a better work/life balance improves productivity.
There is, and the US is more productive per hour worked than the EU. Maybe that work/life balance in the US isn't as bad as reddit would have you believe.
> I think vacation time is a red herring. My guess is that the various forms of worker protection, making it impossible or very laborious+expensive to get rid of disfunctional team members, are a much larger factor.
An emphasis on regulation over productivity is the core issue IMO, including mandates for paid time off. By incentivizing leisure and bureaucracy designed to stifle change (both for the better and for the worse), you're effectively punishing highly productive individuals.
> But also, let's not forget that the major difference between the state of the economy in the US and the EU is Silicon Valley. Without its tech companies, the US doesn't amount to all that much anymore. This could also be explained as a historical fluke with lots of momentum.
It's not a fluke. Like every other organization, the EU is getting what it encourages, which is stagnation and a lack of productivity. They will have to adapt at some point, the only question is how painful that process will be.
> Germany can't compete with US wages in tech because their companies don't generate as much revenue or profit
Right, because, thanks to heavy regulation driven by the USA, it is illegal to compete on a direct basis. The only hope Germany could have is to compete on being more innovative, but how do you out-innovate when you don't have much of a revenue basis to use to fund innovation and are trying to challenge businesses in the USA that have secured the moat that gives an effectively unlimited money printer? Not going to happen.
Like was pointed out earlier, you cannot successfully operate in a highly regulated environment (well, except where those regulations are to your favour, as is the case for Silicon Valley tech). While Europe tends to want more balance in IP laws, what practical choice does Germany have but to comply to the USA's demands? There is no benefit to Germany in allowing Dinsey nearly endless copyright terms, but the USA has a lot of leverage that it isn't afraid to use and that is something everyone else does have to concern themselves with.
This is the second time you've just stated that the US is the source of "heavy regulation" in the tech sector without any explanation of what that means.
Given that virtually no one else on Earth agrees with that claim on its surface, do you care to explain what you mean, or are you just going to repeat it and move on each time?
And to be clear, pointing at copyright extensions for IP like Mickey Mouse is not a compelling argument, because it in no way prevents a German company from producing a product like Instagram, Claude, AWS, or virtually anything else that was launched in the US in the last 20+ years, both because its irrelevant and because the companies responsible for those products also had to operate under the same regulatory regime you're talking about.
> This is the second time you've just stated that the US is the source of "heavy regulation" in the tech sector without any explanation of what that means.
So? I know what I mean.
> because it in no way prevents a German company from producing a product like Instagram, Claude, AWS, or virtually anything else that was launched in the US in the last 20+ years
Aside from all the patents, trademarks, copyright, etc. that would make it impossible to reproduce. You could create something that kind of like sort of the same to a squinting onlooker, but the users are going to know that they are nothing alike.
In theory you can innovate to provide something that is actually better, not just the same, but can you actually when you are up against moat-ed money printers?
No one else who has responded to you does, so you'd think you'd care, but I guess that makes the chances of a meaningful dialogue very clear.
> Aside from all the patents, trademarks, copyright, etc. that would make it impossible to reproduce. You could create something that kind of like sort of the same to a squinting onlooker, but the users are going to know that they are nothing alike.
Again, what specifically are you talking about? Not only does all of that regulation exist in the EU (plus many others, which is what makes your claim about heavy regulation in the US so bizarre), but there are numerous alternatives to each product I mentioned in the US (I specifically picked ones that did not create a new product category for this reason).
What is it about the regulatory policies in the US that allows US competitors to exist, but not EU ones?
> No one else who has responded to you does, so you'd think you'd care
For what reason? Not my problem. It makes no difference to me.
> What is it about the regulatory policies in the US that allows US competitors to exist, but not EU ones?
Where do you think these competitors are, even if based in the USA? I'd much rather support my neighbour, but I have no idea how to find the Instagram not owned by Zuckerberg and friends and, quite frankly, despite your insistence, I am quite certain it doesn't exist. There is really no chance of it existing as if anyone tried to complete on a direct basis, the law would see that they be shut down immediately.
I can find photo sharing services with different usage models, but you would be hard-pressed to think of those as being direct competitors. Perhaps that is where things break down here, though? Not noticing the usage of "direct" in the earlier comment?
While a direct competitor can just straight up copy other parties, indirect competition requires innovation. That brings us back to the question of how do you innovate when you don't have revenues to support investing in innovation?
Finance is a larger sector, but largely exists to support tech. If tech disappeared, as suggested in the earlier comment, the USA's finance sector would soon diminish to near-nothing and might even totally collapse under the weight of that loss.
For a more relatable example, it's kind of like how agriculture manufacturing (machinery, fertilizer, etc) is a larger sector of the economy than agriculture itself. All well and good when everything is functioning, but if agriculture collapsed, it becomes pretty obvious that said manufacturing would go down with it. It is no help that it is a larger sector.
In modern economies supporting sectors will almost always be larger than the "core" industries they support.
Please explain how US patent and copyright law prevents "the rest of the world" (which I assume really means the EU, because China seems to be doing just fine in their own sandbox) from developing a meaningful tech sector?
They have done very well in the manufacturing sector via IP theft starting in the 1970s.
I don't see how that's relevant to much post-2008 in the tech sector, which is primarily software driven and where China has very intentionally built their own walled garden.
The UK choosing to shut down most of its native financial sector is a good example. With RBS it was particularly mad because the government ended up being a massive shareholder and then they chose to shut down all the profitable parts of the business, and double-down on the worst parts. Natwest rates franchise was probably worth £5bn, they basically shut the unit down in entirety (and a lot of those people went to large hedge funds and just went back to generating hundreds in millions in revenue) meaning that the taxpayer lost tens of billions AND the economy was knee-capped for decades.
This is taken as an example to show that even when the incentives were there, the government took a decision for nakedly political reasons. In the opposite direction, they folded HBOS into Lloyds, this was done to protect Scotland (both the PM and the Chancellor had a large number of constituents who would have lost their job if these banks were shut down...they were bailed out) and the result was Lloyds needing a bailout about one year after the banking crisis ended in the US. Again, this was sold to the public as the result of "risky casino bankers on huge bonuses"...in reality, it was just poorly paid commercial bankers lending very large amounts of money to people who couldn't ever it pay back AND politicians then making terrible choices with other people's money to boost their chances in some byelection no-one remembers.
This attitude permeates almost everything the UK does. Schools, politics first. Healthcare, politics first. Electricity, politics first.
I genuinely do not understand how anyone can't look at the scale of political intervention into the economy in the UK and not understand why this might lead to lower growth than the US. In Scotland, the government is 60% of the economy, this higher than Communist states with no legal private sector, it is an incredible number. If you look at income distribution, after-tax income under £100k is as flat or flatter than Communist states too, again this is incredible.
What is surprising is that the UK's economy is growing so quickly. The supply-side in most sectors is almost completely gone, in some economically-significant sectors you have regulators effectively managing companies, very few workers have economically useful skills because of the strong incentives in place to acquire non-economic skills...and the economy is still growing faster than most of Europe. To be fair, almost all of that immigration of low-skilled labour into the UK which is going to be absolute time-bomb financially and the rapid growth in public-sector pay has also helped consumption (even more so, the UK is running a deficit of 5% of GDP with revenues growing 4%/year in an economy that is shrinking in per capita terms...obviously, this is not sustainable)...but growth is still way higher than reason would dictate.
Comparing this to the US is not serious in any way. You have a country that prioritises growth beyond reason and are comparing that with a country which is hostile to change beyond reason. There is no possible comparison. The decisions every government since 1997 has made have been intended to reduce growth, people happily voted for this, and are now upset that the economy is shit...why?
Decisions made in 2008 were also a huge part of this.
The UK had a framework to liquidate financial institutions that was similar to the US, and this was deployed in early 2008 with Northern Rock and B&B. The end result was a multi-billion pound profit to the government.
Gordon Brown then decided that he needed to lead the global economy (and he has written, at the last count, two books which explain in significant detail that he was a thought leader and economic visionary through this period) by bailing out banks that were large employers in his constituency. With RBS, this involved investing at a very high valuation and then shutting down all the profitable parts of the bank, the loss was £20-30bn. With HBOS, he forced the only safe bank to acquire them, this resulted in the safe bank going bankrupt a year after the financial crisis ended in the US, and another multi-billion pound loss.
The US benefitted massively from having one of the most successful financial executives of the period, Hank Paulson, running the economy rather than (essentially) a random man from Edinburgh who have never had a job in the private sector (apart from law, obv) but held a seat with a huge number of constituents working at the banks he should have been shutting down (Brown himself had never worked in the private sector at all, parachuted into a safe seat after his doctorate). Geithner nearly suffered from that same fault, but did well with TARP (again though, iirc, this was Paulson's plan).
Because everything in the US is inflated thanks to rampant printing of the USD. Healthcare? Inflated. Education? Inflated. Day-to-day stuff? Inflated. Property values? Inflated.
Most of Europe has lower GDP per capita than the poorest states of the US, yet the lifestyle of European citizens in those countries is much better than the lifestyle of the poorest Americans. American growth is built on the backs of piss-poor healthcare, shoddy education and an overinflated perception of the tech sector which holds the rest of the world hostage (but not for long).
I think you are making broad generalizations, so broad that the only statement it's clear you're trying to make is "The US is bad" and the broadness of your argument weakens it greatly.
Cost inflation isn't unique to the United States.
Europe isn't a single country.
> yet the lifestyle of European citizens in those countries is much better than the lifestyle of the poorest Americans
Does this include the Romani people? Does this include the Ukranians being attacked by Russia?
Greece's housing cost burden is higher than 30 US states. Not all regions in the USA have faced serious property cost pressures. [1] [2]
"Day to day stuff" is a very broad category, and that includes items that are flat or decreasing in cost. In that sense I will point out that VAT is much higher in the EU than sales tax in most US states, with VAT rates of >20% being very common while the highest combined sales tax in the USA is just over 10%. Sales tax/VAT is a very regressive tax that harms the poor the most. For someone on the poor end of the spectrum in Europe, buying something like a computer or television is a greater burden than someone in the US.
I'm reminded of the natural gas price spikes in 2022 in Europe, and of how the EU's average electricity price is about 2-3x higher than it is in the US. The US has an extremely stable supply of basic needs like energy and food.
Education costs have been flat or lower than the rate of inflation in the US since roughly 2016, so for the last 10 years the idea that education is becoming more expensive in the USA has been squarely false. [3]
Healthcare, I'll give you that one, the US is not faring well. But we can look at some systems in Europe having their own difficulties like the UK and Spain and it's not like healthcare isn't a challenge elsewhere. I will also point out that the US does have public healthcare for the poorest (Medicaid) and for all people over 65 years old (Medicare), and Medicare is a standout in quality among public healthcare systems in some outcome categories.
Speak for yourself. I love my cars. For a relatively modest expense they allow me to go wherever, whenever I want and bring all my stuff with me. This is a miracle of modern civilization.
Have you ever actually been to Europe? Public transit is pretty good in first-tier cities like Vienna / Stockholm / London where tourists spend most of their time. But out in the smaller cities and rural areas where regular people live there's very little public transit except for slow and inconvenient buses. So everyone drives. Or if they're too poor to afford a car then they just don't go anywhere.
This is my observation as well, it's also true in the USA. Places like Chicago and NYC have good public transit. You can easily live there without a car, in fact it's easier and certainly cheaper to not have to deal with owning a car. If you visted NYC and formed your impression of public transit in the USA based on that, it would be very wrong. Likewise you cannot assume that because Copenhagen has great public transit and bicycle infrastructure that all of Europe is like that. Get out to the smaller cities and towns and you'll find that many more people own cars and drive everywhere.
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