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Roger Fowler said:When a company is facing a hundred thousand dollar hit from unexpected damages, you have to wonder if they can even call themselves a real business at all?
Wow. So you're telling me 80% of any nation's economy rests on the shoulders of micro-entrepreneurs? In what country on earth are these small business owners sitting around with an extra $100,000 in surplus cash?
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Jacob Alvarez said:Productivity scales with capital investment and education. It’s honestly a pretty straightforward concept if you think about it.
A map showing productivity levels across the European Union back in 2019 Darker colors mean better numbers.
In countries where productivity sits below the European Union average, you see much faster growth because they're catching up toward that 100.0 benchmark. The US is consistently lagging behind on this front.
It’s the exact same story when you look at wages. If you line up the productivity charts against wage data, the correlation is staring you right in the face.
Which means there’s basically zero room for wages to climb here. We’re sitting at the same level as Romania, just with noticeably higher paychecks. Meanwhile, Romania’s productivity is set to explode twice as fast as ours will.
How many high-quality workers is an employer actually going to be able to find once those people realize that no matter how hard they grind, they can't outpace the growth happening in Romania?
How exactly do we measure productivity in America? Statistics are a mess—you can twist them to say whatever you want. In reality, it doesn't seem to depend on capital or education levels at all. Take the Corona era, for example. People became incredibly productive during that time. I'll let you draw your own conclusions as to why.
We always end up at the bottom because the massive influence of government agencies skews the overall impression. It’s not a fair fight. If we actually want a meaningful comparison, salaries should be looked at based on median levels instead.
It's the same situation here. We’re putting up high gross figures, which makes us competitive on paper, but once you look at the take-home pay, we start falling behind. Of course, net pay isn't really what matters for the official statistics, but there's definitely room for us to bump those wages up in the next cycle. Our real struggle is that our overhead costs are sitting at the level of much wealthier EU nations.
In America, your industry matters, but if you're willing to put in the work, there's massive room for individual growth. On a larger scale, things are steadily improving too. We're currently in that foundational stage—building the groundwork—whereas other countries already have their footing because they’ve had a ten-year head start without war and nearly a decade of being part of the European Union. For us here in the States, we should really start seeing those systemic results hit home by the time people reach their 30s.
Things aren't all bad when you've got someone to grab a beer with. 😉