Earlier quoted context omitted.
The reason American workers say they can barely survive on $60k a year is that they pay out of pocket for things German workers can take for granted: * Comfortable retirement - 401k contributions. Yes America has social security but it's not a ton of money compared to other national pensions and if you're young you worry about it not being around at all by the time you need it. * Unemployment - You should probably ha…
And not to mention: * Healthcare - Health insurance is often a luxury in America. The elderly have Medicare, but there is (currently) no safety for most citizens. * Public transportation - Many US cities don't have adequate bus service. Just anyone who lives outside NYC or a college town will need a car.
In Germany and many European countries, you pay for healthcare and it costs a lot -- you simply don't have the option of not having healthcare and the cost is proportional to your income rather than your health condition. Also note that the employee caries the full cost of health insurance as opposed to the employer usually covering it in skilled professions in the US.
The social security model is also somewhat similar: you pay (high) social security taxes and get money back based your contributions.
Unemployment, also like in the US, is pretty sane if you're a full-time employee and are fired. You don't get it for several months if you quit on your own and if you haven't payed unemployment taxes, you get put on unemployment that's just at the edge of livable (housing costs + about $500/month).
And note, those taxes come after the lower salary. A pretty common take-home salary for a European software developer would be $3000-4000/month.
And really, how many 20-somethings that complain about the cost of living are doing it because they're stashing away too much in their retirement fund?
Public transit is a valid one, but then, the two highest paid areas for software developers in the US, New York and San Francisco, also have quite good public transit. (Not to mention that a one-month pass costs $100-200/month depending on the area.)
The truth is that I've heard people say that while they eat out every day, have a new car every couple years, live in swanky places and spend money on a constant stream of new gadgets. Americans also have a weird fetish that you don't find other places about buying homes in their 20s. While there are some valid reasons that make the total cost of living in Europe comparatively lower, I'm really not convinced that's the core of the difference. It's just that people quickly grow into their incomes and start seeing things as essential that aren't.