Ask HN: Why is pay so much higher in the US? (or is it?) • Hacker News Board

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#51

Post by ChuckNorris89 » Mon, Sep 12, 2022, 10:42 AM UTC

gigatexal wrote: post #12

Mandatum wrote: post #5

Because that’s where all the money is. Seriously look at global GDP, maybe American citizens aren’t the wealthiest but the country and the businesses that run it sure as shit is.

Haha pay is higher in the US because, sure, it's the world's largest economy. Though there are more millionares being minted in China than in the US every year. Nevertheless I'd sure as shit not want to build my business in China. I used to think this was because of relatively higher taxes in the EU than in the US but at the top end the highest wage earners are taxed rather heavily. A 500k salary is not 500k takehome…

>I find the EU (Germany in particular), is hurting for talent enough that my mediocre skills (working on skilling up) are in demand and I'm relatively well paid >80k eur/yr

Can I ask where in Germany?

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#52

Post by ChuckNorris89 » Mon, Sep 12, 2022, 10:43 AM UTC

bantunes wrote: post #19

When real estate is at such a premium in big cities (even with recent slides)[1], good schools free from teachers having to pay for their own materials expensive[2], and going to the emergency room potentially costing you thousands of dollars[3], you need a lot of money to attract and retain people. Also, profits are higher because companies pay less tax[4], so even with higher salaries it's still good business to pa…

US tech workers have health insurance thought.

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#53

Post by WastingMyTime89 » Mon, Sep 12, 2022, 10:43 AM UTC

BeenChilling wrote: post #6

What are the best ways to get hired in the US as a software engineer from the UK? I’ll be graduating with a masters in CS from a top university in 2023.

Apply to an internship or inquire about job opportunities through the career service of your university. Large US companies recruit directly from the few top UK universities and will be happy to send you to the US if that’s what you wish. But if it’s money you are after, I would personally stay in the UK and go work in finance.

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#54

Post by badpun » Mon, Sep 12, 2022, 10:45 AM UTC

gigatexal wrote: post #12

Mandatum wrote: post #5

Because that’s where all the money is. Seriously look at global GDP, maybe American citizens aren’t the wealthiest but the country and the businesses that run it sure as shit is.

Haha pay is higher in the US because, sure, it's the world's largest economy. Though there are more millionares being minted in China than in the US every year. Nevertheless I'd sure as shit not want to build my business in China. I used to think this was because of relatively higher taxes in the EU than in the US but at the top end the highest wage earners are taxed rather heavily. A 500k salary is not 500k takehome…

Mediocre skills pay $150k usd in the US now though.

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#55

Post by whiddershins » Mon, Sep 12, 2022, 10:49 AM UTC

sixhobbits wrote: post #14

Compared to Europe there is more upside and downside risk in the US. You can earn more but you are more likely to be financially wiped out if you get cancer or have an accident (high medical costs). Most countries in Europe have more social support built in at every level, not just healthcare, so its unusual to go from living comfortably to being on the street. Some argue the US way is good (more downward mobility is…

No, if you have health insurance this isn't true. None of this is how it actually is in the US. Outside of addicts and the severely mentally ill it is rare to "fall off" middle class status.

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#56

Post by badpun » Mon, Sep 12, 2022, 10:50 AM UTC

bantunes wrote: post #19

When real estate is at such a premium in big cities (even with recent slides)[1], good schools free from teachers having to pay for their own materials expensive[2], and going to the emergency room potentially costing you thousands of dollars[3], you need a lot of money to attract and retain people. Also, profits are higher because companies pay less tax[4], so even with higher salaries it's still good business to pa…

Houses in for example Munich are more expensive than houses in SF (2.3 mil in Munich vs 1.5 mil in SF), while no one in Munich is making anywhere close to the FAANG salaries. The solution is that the coders don't live in houses, but rather in smallish appartments instead (or, if they want a house badly enough, they live far away from the city and have long commutes).

Western Europe is basically poor-ish compared to the US, and US people who imagine average W. European to be as well off as average American (but with better security, free healthcare etc.) are deluded. They overall standard of living is way lower over here, we're just used to it so we don't complain.

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#57

Post by [deleted] » Mon, Sep 12, 2022, 10:50 AM UTC

trinovantes wrote: post #3

I think it's mostly culture. Compared to other regions, US favors innovation/risk taking and sees software developers as value creators rather than cost centers. There's also the fact that USD is the global reserve currency which makes it much easier to raise capital.

[deleted]

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#58

Post by blackhaz » Mon, Sep 12, 2022, 10:51 AM UTC

quickthrower2 wrote: post #49

blackhaz wrote: post #39

Earlier quoted context omitted.

I live in London. Developed a persistent headache which goes on for a few months already. Just got appointment to a neurologist for August 2023. Today is September 2022. Although, is UK in Europe?...

Sounds typical UK. But, how much is your health insurance costing, and could you land a $500,000 bill if you go to the wrong hospital?

Costs nothing if I'm dead, I guess.

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#59

Post by merek » Mon, Sep 12, 2022, 10:53 AM UTC

pavlov wrote: post #28

Mainly because USA developed multiple geographic clusters where software developers are in high demand (Bay Area for consumer tech, New York for finance etc.) and the funding ecosystem is both deep-pocketed and culturally supports paying for talent. Traditionally European VCs and founders both operated under the assumption that startups need to save money rather than spend to get the best. And consequently those star…

> Traditionally European VCs and founders both operated under the assumption that startups need to save money rather than spend to get the best. And consequently those startups don’t grow into big companies that would pay for talent.

I wonder if startups have a better chance of becoming profitable in the EU than in the US, despite the on-average smaller company size.

Reasoning: careful cost management gives a startup more time to understand the problem and to test more ideas. Compare to a startup with a high cash burn rate, the window to test and iterate is much smaller.

Would anyone know of any sources that may support / reject this idea?

Re: Ask HN: Why is pay so much higher in the US? (or is it?)

#60

Post by dvfjsdhgfv » Mon, Sep 12, 2022, 10:54 AM UTC

I live in Europe, work remotely and earn ca. €3000 (net, after taxes etc.), which is quite low by American standards. I had an offer from the USA but when I calculated the cost of living it turned out I could save less than here. Plus I'm a bit anxious about medical care. From what happened to my friends it seems that as long as your health is good or you have minor problems, everything is fine. But as soon as you need more complex help, things can go downhill.