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Or maybe not all jobs are paid so well or living costs compromise all that, but do they?
There's also the fact that USD is the global reserve currency which makes it much easier to raise capital.
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.
Could you explain more?
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.
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.
Even historically speaking when the US dollar was not the reserve currency, pay was still higher in the US. It probably comes down to productivity and the transmission of that to wages more than anything else.
(EDIT: Wow, look at the numbers cheschire linked to. Median wealth per adult: US is 26th place after Israel.)
In my opinion, the cause is strong competition for the top talent worldwide. And because raising money is easier in the US and because taking risks is more common in the US, they will compete more strongly for the top talent, too.
Also, some jobs just have to pay really well to make them acceptable. In the area where I live, $60k annually will pay for a very nice lifestyle for a small family with kids. Little house with garden, hiking in nature, free childcare, schools, university, etc. But if you have to live in San Francisco, $60k annually with kids is almost impossible. Rent over there is like 5x to what I pay, so it makes sense that people will need 3x the salary to do okay. And if you then add the cost for childcare, school, and university, you really need 5x the salary in San Francisco to get a comparable lifestyle to rural Europe.
So you get low taxes and lots of money into your pocket, but then you fork it out again. Remember, those grads landing a job at a FAANG have hundreds of thousands in student debt that is attracting interest to pay back.
It’s also the cheapest developed country to buy “stuff” For similar reasons - cars, appliances, electronics. Even food, beer and cigarettes are drastically cheaper than other Developed countries.