To pre-empt upset Europeans. I'm a proud advocate of European businesses. I regularly bore my friends by telling them about the issues with the European economy, and how we ought to support European businesses when possible. When making purchasing products, the nationality of the company is almost always a factor in my decision making. That being said, just compared to the powerhouses of America... European business do kinda suck - Jack
TBH: a BIG reason Brexit happened is Europhiles act like the EU is essentially perfect. They're too often not just patriots but cultists. More criticism of the EU's AI regulations and lack of tech start-ups is fundamentally necessary.
No reason to preempt anything. Most european companies (especially tech) is bought up in its infancy and integrated into the US companies with the vast amount of capital there. Capital markets is just plain better there. I usually see the American tech companies as a consolidator of tech from around the world (including US itself off cause) that can make all of it into a coherent product that people want to buy.
I’m sorry but Nestle of Switzerland is one of the worst companies in the world. So don’t pretend like European companies are somehow more ethical or something.
@@ws1814 not more ethical at all. Exactly the same, difference being sometimes our governments and authorities actually force them to not be so evil. Whilst it’s more laissez-faire capitalism in the us
@@ws1814 No not more ethical no company that tries to make as much money as possible is ehtical. But inside of the EU these companies are held more accountable. Key word inside of EU. Outside of the EU these European companies can still do their regular awful thing
One important aspect missing from this, is that unlike the EU, the USA does not use a value-added-tax (VAT). This means that if one buisness sells a product to another buissness, and then that buissness sells to another buisness and then finally to the consumer, then sales tax is paid at every step of that chain in the USA. This creates a strong incentive for vertical integration, because if you own all those intermediate companies, then you bypass the intermediate sales taxes and have a competitive advantage. In the EU with the VAT, if your business buys something and then re-sell it or integrate it into a component that you sell, you can reclaim the VAT you originally paid on that product as a tax credit or payout. This makes it actually very practical to have many small, independent businesses to create value chains where each buisness specializes on a very specific product, rather than vertically integrating into a mega-corp that owns its whole supply chain. So only comparing the large businesses between the EU and the USA can give a very skewed picture. ____________________ Also, I think the point about the unity of the US market is sometimes oversold. Every US state, and sometimes even every county or municipality in that state can have different tax regulations, reporting requirements, consumer rights, environmental regulations, etc for companies doing business there. Very similar to the EU but a bit less extreme
This comment is spot on. VAT kills small and medium enterprises dead before they can get a foothold. I used to run a business, a small one in the UK, and we hit the VAT threshold in our second year. It then became impossible to expand due to the tax bills. I just gave it up as I couldn't afford to pay myself, and got a corporate shill job. If the VAT threshold wasn't there or was set at a few hundred thousand, I could have hired someone to help me out and expanded. Who knows how successful it could have been? We were growing, maybe we'd have been huge, but tax rules in the UK and EU are just murderers of small and medium businesses. Quick edit, I should make it clear I'm referring to this comment above being spot on, and I an referring in my comments to VAT and the VAT threshold in the UK specifically as it's been pointed out I might have been unclear.
@@badluck5647 Apple and Amazon are two of the biggest examples of extreme vertical integration in the US economy, where their standard operating proceedure is to constantly look out for parts of their value chain that it's possible for them to assume ownership over. Microsoft, Nvidia, and Tesla also have pretty strong focuses on vertical integration. Notice how e.g. Apple owns their phone business, an app store for those phones, a payment processing system for that app store, and now even own a banking business to finance those customer purchases through that payment processing system. In the hardware side, they've switched to their own in-house developed processors, and have been on a quest for over a decade now to replace their iPhone's cellular modems with their own in-house modems. Apple makes their own motherboards, computer cases, screens, etc. The list goes on forever.
EU: - give us a finished product that's already selling - a 5 year financial plan - a 30% stake in your company - pass all regulations before you come to us = and we give you ~€1 million US: - write a good plan - find people - build a prototype - give us 5-10% stake = and we give you ~$10 million Why would anyone choose option 1?
You idiots forget the eu is not a single country and the eu is not comparable to the federal us government and its states. Every member can constantly disagree on things
They are different countries each with their own policies, for example spain cant agree on its business practices with ireland etc so they do it differently, but each country has less resources alone, Also china literally has even more restrictions than the eu, yet they are far more competitive, your argument is stupid
@@NeostormXLMAX,"fewer restrictions for Chinese companies" apparently translates to "receiving direct funding from the Chinese government". Gotta work on my Chinese, my bad, my bad.
This is based on market cap of publicly traded companies. Aldi is private, and the other ones have very low market cap compared to their revenue/earnings. US companies tend to have higher Price to Earnings ratio and higher profit margins, and more are publicy traded than in Europe, so for stuff like total market cap of publicly traded companies comparisons, the US absolutely trounces the similarly sized economically Europe. If you were looking at straight revenue of all companies private or public in each region, most of the difference would disappear. This can be seen with fortune 500 global companies by revenue, where Asia is the largest single region nowadays by revenue.
It’s because those cooperates you mentioned are not public in stock markets. That’s why the list and arguments showed in this video aren’t really accurate. If you look at other rankings where private companies are also taken into consideration, you will get another picture and more German brands like Aldi, Schwarz Gruppe, VW, Airbus and Telekom.
Making planes is a hard business. Mistakes are much more harmful to the company than other industries. The A380 failure really hurt Airbus over the past decade and a half. Boeing's recent massive failures will likely help Airbus tremendously though for the same reason.
Funny (or sad) thing is that they don't sell it inside EU because there are no tech companies that use it. They sell it to China (now sanctions but yeah) and USA.
@3:59, Using Europe interchangeably with the EU is very misleading. Europe has 50 countries, and the EU has 27. Also, Japan has around 125 million in population, but it does not stop many manuals and products coming with Japanese instruction on them.
Where did you get 50 from? There are 39 with the traditional definition. 40, if you wanna include Turkey , but you might aswell include America at that point with their occupied parts of Germany.
@@bennyklabarpan7002 42 countries in Europe, Plus more for Microstates (Of which there are 6) unless you want to go into Balkans drama and pretend nations like Kosovo or Macedonia dont exist in which case 40 + 6 microstates for 46 or 48 in total, possibly another + 3 if your one of those people that consider the Caucuses Europe also.
Two observations, as an American who has spent many years in Europe: 1) Europeans commonly hold the idea that America is one big homogenous culture/market. This is not true. At. All. While it is true that the U.S. market is more integrated than the European market, it still possess and must cater to wildly different cultures. This is particularly notable between large cities (NYC, Washington, Atlanta, Chicago, Dallas, Austin, etc.) and rural areas; indeed, that's probably the single largest driver of our current political polarization. Even beyond that division, however, different regions are very distinct. As someone who has moved from Washington, D.C. to Chicago to, most recently, Atlanta, I assure you that those three cities are very different. The market reflect that. As a concrete example, I'd never even heard of a Publix or Krogers before moving to Atlanta. Here, they are _the_ dominant supermarkets. 2) In my opinion, the European market remains far more fragmented than it needs to be. The fact that companies need to set up a separate headquarters in each individual European state, with different logistics, different management, and different inventories, boggles my mind. That creates an entirely unnecessary layer of management, with all the inefficiencies which it implies. As a concrete example, there were many times when, while living in Barcelona, I couldn't find what I wanted on amazon.es, but lo and behold, amazon.fr or amazon.de had the item in stock. Could I order from them? Sure, but delivery cost three times as much and it would take four times as long to arrive. For a smaller European competitor, that's a huge barrier to overcome. European policy, it seems to me, remains focused on protecting the domestic industries of each individual state at the expense of encouraging a genuinely European market. Changing policy to encourage a continent-spanning market, with companies identifying as European rather than German or Spanish or Hungarian, might do a great deal to improve European productivity and boost European companies. I _want_ European companies to compete on an even footing with American, Chinese, and (eventually) Indian ones. I _want_ the E.U. to form a third pole of geopolitics. The first step in that process will be to stop thinking of business and politics as German or French or Polish, and start thinking of it as European.
They sold it in 2020 to a Norwegian company but it was from 2004 to 2020. However this is very typical stuff globally these days. Enormous amounts of European investment exists in the US as well to the tune of trillions of dollars, same the other way around.
Europe is al a consumer union. Just a shittier version with higher taxes. Furthermore, all these idiots form the EU are doing with their big tech regulation acts is lower the standards for startups. For many startiups it is the ultimate goal to be bought outght by a big tech firm, the EU is actively preventing that.
not really. Germany has a 15% corporate tax, US has 21%. Employees are taxed heavily in Europe though compared to the USA. America probably gets the smartest people from Europe thanks to this, cause they can pay much more.
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In fairness, the Silicon Valley mentality also tends to cause quite a lot of economic chaos. For example by _"Blitz-Scaling"_ new business models like Uber and AirBnB, bankrupting all the traditional competition, and then jacking up the prices again. So maybe Europe is better off without that.
@@pbrown0829 Because AirBNB is now commonly *more* expensive than Hotels, while leading to housing shortages and rent increases in cities. Meanwhile Uber is still trying to kill off its competition in many places, but has already shown it will gladly charge riders ridiculous sums when they can get away with it. "better for customers" is also very questionable... and it only works with VC money and by exploiting their workers, I mean, "independent contractors".
@@pbrown0829 I am using hyperbole somewhat. But there is a trend for putting competitors out of business by burning through venture capital, and then jacking up prices once you've cornered the market. Uber is better than cabs in many ways. And part of that is genuine technological innovation. But part of it is also just operating at unsustainable profit margins, and gradually transferring more of the cost onto drivers and passengers by stealth.
Facebook is a really bad example. They swept through Europe like it's nothing. So, you can build a product that is markable in all countries. That's not really the issue. For the language barrier: Go for English first. You still also have access to the US market from the EU.
@@sokacsavok Yeah, so that argument doesn't really fly. Europe has an issue with innovation due to regulations, lobbying and no financial infrastructure.
This video didn't provide much by means of enlightenment, and you point to a perfect example showing this. We already have economic theories that explain very well the gulf between the US and Europe, and that is taxes and bureaucracy.
You never know though. In the 80's, Japan's market cap in the world was over 50 percent. You never know when a bubble will pop up. Invest at least a little bit into the world index.
The landscape of big tech is dominated by American companies, and there are a few key reasons why. Firstly, the US fosters a culture that thrives on risk-taking and innovation. This is fueled by a constant flow of venture capital, which is essentially investment money specifically for startups. This allows even small, ambitious tech companies to get the funding they need to grow quickly. In Europe, the culture tends to be more cautious, and the investment landscape is more fragmented, making it harder for young companies to secure the resources they need to compete on a global scale. Secondly, the US boasts a massive, unified domestic market. This allows tech companies to develop their product or service for a large audience right off the bat. Imagine a playground - a big tech company can refine its concept on a vast American "playground" before taking it international. In Europe, things are more like a collection of smaller playgrounds, each with its own language, regulations, and consumer preferences. This makes it more challenging for European tech companies to scale up to the level of their American counterparts. Finally, the regulatory environment in the US is generally more favorable to tech companies. While Europe enforces stricter regulations on data privacy and competition, which are important for consumers, they can also stifle innovation and growth for young startups. Think of it like training wheels on a bike. While they help you learn, they can also hold you back from reaching your full speed. The looser regulations in the US allow American tech companies to experiment and grow rapidly, although this advantage can come with downsides that require ongoing scrutiny.
On the culture side, Europeans are more focused on their leisure time and summer holidays than putting in the very high number of work hours it takes to build up a massive company that is an innovator in cutting edge tech
You missed the real reason - The US govt set up and funded several of those companies - Facebook, Google. Amazon, Space-X - Have all received massive amounts of state funds. The idea the US is some free market nirvana is so laughable it is untrue.
Also it should be added, Silicon Valley, and American major businesses in general. Also attracts talent and investment form abroad. So Hollywood, Silicon Valley, and the like are major international industries based within the US. They archived the world hub of said industry.
If you do a sector wise comparison, European companies are competitive. Pharma, aircraft, fab equipment and so on. The difference is in the software sector, which is also the most profitable sector by far today.
@@kellymoses8566 the bar to entry is low but its a niche field which does not attract much people, its also really hard to become a good software engineer and a carrer where its really easy to burn out, or set up a successful start up and get enough funding especially in europe.
@@kellymoses8566 There is for platforms (like social media or online markets). It comes through a lock in effect, though. Platforms get better the more users they have (both in available content and capacity to train algorithms). So if you start late, you're quite fucked.
Europe has plenty of regulations that favor monopolies but hinder small business entrepreneurship. Do you know where American companies park their cash to avoid paying taxes? You guessed right, Europe.
why do us companies still dominate european markets with their language barriers? the us companies and european companies both face the same issue of marketing and reaching these different countries. only point out the language barrier or culture seems superficial since they both face the same challenges
what a great video, I love everything he said, like this always make me wonder what it would be like if we hadn't established financial systems all over Europe
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5:10 - Ebay lost to a local Allegro in Poland, because Allegro is so much better, even Amazon doesn't do as well as Allegro. Not even close. Why didn't they buy Allegro?
In my country neither eBay or Amazon are hugely popular but we don’t have have a real alternative to Amazon so some order thru the Spanish website after the uk left the eu,aliexpress is somewhat popular and nowadays off course temu is even more popular ,also nowadays online electronics stores websites allows for third party sellers so most buy from there, for the secondhand market OLX is more popular,fb marketplace although vinted is gaining momentum. So has you can see is still quite fragmented even inside one country.
@@eXclusive1 I will copy my response because I can see there are more sharp people here: 1. there are more people in Poland than Holland. 2. Poland is a developing country. 3. It was worth for these companies to move there, so what are you talking about? Man, think a bit before you write something.
The US has the most and most liquid capital market in the world. Basically, not only does the US have the most capital for startups and expansion, but the capital can be mobilized and utilized much, much more easily and quickly. That is significant.
@ycplum7062 - You are correct on this point. The capital markets are very liguid and very efficient. A friend of mine from college started his CNC machining business through a small-medium capital company that helped him with the initial investment in a large facility. He grew enough to buy them out and give them a 20% return. He was a talented mechanical engineer and a machinist. He would not have been able to set up a manufacturing enterprise without that capital.
It is also worth noting that investing is different in the US and EU. In the US there is a lot of speculative investing and a big expectation of share price growth. American companies will even forgo dividend payments entirely in service of this share price growth by reinvesting profits. This leads to the massive market capitalisations. European investors, on the other hand, often prefer to receive steady income through dividends, and this is what European businesses target. European stocks therefore often have greater yields than US counterparts.
@@americaisthebestcountryever It turns out cannibalizing a nations companies as Europe continues to do is negative lacks positives and is unhealthy for the big picture
@@americaisthebestcountryeverthe entire foundation of the stock market as a concept is dividends, you can say it kills growth but stocks don’t really have a point without them
@@americaisthebestcountryever A bird in hand is worth two in the bush. A dividend puts cash in your hand. Mere growth does not. The only way to get money out of growth is by selling your shares. That's not investing, just speculation. Don't get me wrong, you can certainly get money out of speculating, but you have to constantly work on it. You don't retire on speculation. You retire on investments.
@@americaisthebestcountryever No, it isn't. A house is a commodity you buy to use, and a liability because you have to maintain it in order to keep it useful. No different from a car in that respect. You _can_ turn a house into an investment by renting it out, though. If you're just buying and selling, however, that's again, just speculation. Having the house you built 35 years ago for $100k now being worth $500k is nice when you look at your spreadsheets, but it's not putting money in your pocket that you can use like the income from a rental property would be. Also, rental properties are not a great investment if you take out a loan to buy them. The repayments will just suck up most of the rental income.
Europe and the EU generally are pretty bad to get a business started in. Even if you have an amazing idea you have to start small, and being small is just un-affordable given the tax systems in the EU/UK etc.
@@AlterEgo-en2wx Right, but you do understand that this essentially calcifies the existing players (big and small) and discourages any sort of market disruption or entrepreneurship, right? This is how you stagnate. This is how you create brain drain. Also, this trend extends all the way down to small business. A large number of entrepreneurs are first-generation immigrants because it's easier for them to start their own business than to climb the corporate and social latter in a country that they're new to. Think about the local corner store in your town. In many countries, those are typically immigrant owned. Given Europe's last 15 years, wouldn't it make sense to make it easier for immigrants to start a small business, not harder?
@@AlterEgo-en2wx No new small companies, no new big companies. You have to start somewhere but if you are taxed by the government to oblivion as a starup you won't grow, nor EU will get new Big companies, only dinasauruses will stay that don't inovate much.
A lot of EU (and Canadian, Australian, etc) tech companies end up doing business primarily in the US due to the larger homogenous market, higher incomes, higher levels of investment into productivity (e.g. into SAAS products), etc. I work in tech in Canada and the past 3 companies I've been at have focused almost exclusively on US customers. The bureaucracy and language barriers of the EU make it difficult to make money there while the vast distances make moving any physical goods prohibitively expensive in Canada and Australia.
@@graham1034 bro WHATTTTT Canada is extremely more densely populated,half their population lives only 50 miles away from the us Canada border(we know why🤷🏽♂️).Same concept applies for Australia where 95% of their population lives in its 5 biggest cities(same for Canada js to a lesser extent).but yeah the difference in state regulations vs entirely different countries regulations is an acc good point,but for the first point what tf r u smoking😂😭😭🙏
@thyblackpanther transporting good between large cities like Vancouver, Calgary, Toronto, etc is thousands of miles. Trading to the US isn't as far but international shipping has a lot of extra costs.
3:20 The language barrier is BS Basically everyone working in Europe's big companies speaks English , we all learn it ... 3:40 That is a bit more valid , but the EU common market has reduced that by a lot 4:33 Again, thats BS , as all of us Europeans basically use American social media apps ... the concept of a social media app "specializing" in a specific country is ridiculous outside of China The question is , why is there no European social media app that captured the entire world , and basically all social media apps that have done so , are American ... the existence of multiple countries in Europe with different market preferences CANNOT be the answer if everyone in Europe uses basically the same American social media apps
This. You have VW, second largest car producer in the world trading at 10% of value the comparably miniscule Tesla. Ppl just value american companies more due to no regulation and lack of worker rights. Or just because they are much louder.
Valuation is very mathematical, companies are usually valued based on the amount of future cashflow they can generate and it turns out that European businesses are worse at doing so, and so usually ends up having a lower valuation. You can look at comparisons on banks, energy companies etc. European companies struggle to earn even their WACC back. Edit: in Tesla Vs VW, Tesla is valued higher because more growth is expected, but growth expectations have been reduced, which is why Tesla's valuation has fallen. It is not as dumb as a company being louder. @@123batina
@@123batina Volkswagen produces 9.2 million cars annualy, Tesla produces 1.8 million. VW revenue: 322 billions, Tesla: 96 billions. Operating income: 20 billion vs 9 billion. Tesla is growing like crazy, leads the EV sector, has competetive prices AND big margins. VW EVs are overpriced shit compared to Tesla. EU plans to ban EVs so it makes sense to be bullish on Tesla.
@@SK-cz5wy Google it before you say it: "U.S.-based electric vehicle (EV) maker Tesla reported a total revenue of $ 21.3 billion in the first quarter (Q1) of the financial year (FY) 2024, a 9% year-over-year (YoY) decrease." Decrease is kinda... not growth. Specially not "crazy growth". You know who is growing like crazy? Cupra. Luxury brand of Seat, part of VW group. Google that as well ;) Anyways - I dont want to deal with kids and cultist anymore, so Im out of this discussion. Have fun guys.
Startup culture is very demanding. Pulling all nighters, sleeping on factory floors, nights weekends. That doesn't seem very European. Perhaps they're places in Europe like that?
Why the US will always have an advantage over the EU: 1) Innovation. 2) High risk tolerance. 3) No judgement if you fail. Just keep trying. 4) The word entrepreneur is not a bad word. 5) Universities that do tons of research with private sector, federal and state government aid. 6) Productivity is rewarded. Mediocrity is frowned upon. 7) A friendlier business environment. 8) Infrastructure that makes things move. From the postal service to the extensive interstate highway system and railroad network. 9) Common language and laws. 10) Higher skilled labor force.
Europe prioritizes consumers over producers, which is great in the short term horrendous in the long term since you basically get out done by more competitive companies. Europe is now experiencing the long term effects of basically living in rainbow land.
This video mentioned only minor factors. If you want to understand the actual reason why these American companies dominate, it’s innovation. They are creating the technologies that are driving the global economy forward. Look at Europe’s largest company? This same factor holds true. Tremendous innovation. If a company innovates and solves a problem or improves quality of life, money will flow their way. There’s a culture that focuses on researching and inventing in the USA and the people with the money to fund it are right beside it. The smartest people flock to this area to make their ideas come to life. I saw a documentary recently where Germany is trying to cultivate something similar to Silicon Valley. It’s good they are doing that. A strong Europe is good for the world.
And that makes Hungary's direction even more of a catastrophic ones: we are basically becoming a polluted trashdumpster and both the mainline culture and policies are hostile to intellectuals, as Orbán tries to push down wages and people into factories. But Hungarian education now fails so hard that people are too stupid for even factory and manufacturing works, they can1t speak English, they barely speak even Hungarian and can't follow written instructions. We are fucked.
Yes but 90% of them also have the most massive recalls in the world right after china 😂 europe builds quality not quantity Also 90% of the innovators of these so called magnificent 7 are european with HB1 visas 😂 as the country of america itself is a european invention its like a over achiever son competing with his old father 😂
@@THEPRESSTV Two statistics you gave there with exactly 90%. it’s almost like you just completely made those up. What you wrote is false and you know it. And yes of course the USA is nation of immigrants seeking a better life. Many of those that left Europe were either fleeing wars, seeking religious freedom or economic opportunity. Europe has suffered a brain drain to the USA because of World War One and two. That’s a large part of why you see so many American military installations in Europe. Peacekeeping In addition to force projection to keep Russia off your backs. It has come at an enormous cost to taxpayers in the USA. We could probably have free universities and healthcare for all of our citizens if we didn’t protect everyone but then the world would descend into war again.
@@ScentlessSun didnt make them up not one bit all it takes is a simple google search to verify them sadly your prob to lazy to even tie your own shoe laces Europeans did not flee wars in the may flower they came because they had theyre own sect of Christ others came for richs 😂 because the new world had gold and precious metals to get rich from And im american my self and im sorry i hurt your feelings snowflake but its true even the name america comes from Americao Vespucci an italian explorer europe invented and breathed life into the USA washington was an englishmen as was jefferson and the others they had a beef with the king not theyre motherland england and its people Even the most famous cities in america are named after european ones york in england newyork america get the gist And about you helping these poor countries its not out of the kindness of your heart ill tell you that its taking a page from daddy UKs book of imperial conquest And YOU WILL NEVER HAVE FREE HEALTHCARE AND FREE UNIVERSITY the US already has the funds for it but the senators and congressman need theyre new private jets and mansions 🤣🤣🤣 dont pin the blame on europeans for greedy american politicians thats are basically trillionars 🤣🤣🤣 foriegn aid is barely 10% of the US yearly budget yet a 900 meter bridge costs almost 100 billion dollars Infact the US has said if they have free trade with europe the US economy would increase by 20 percent
This is just economies of scale. In many sectors, a bigger company means a more efficient company. This is especially true in high tech. E.g. you spend the same R&D money to develop your electric car, whether you sell it to 1 million or 1 billion people. In a globalized world, the bigger players, i.e. China and the U.S., dominate the high tech sector. The other countries provide cheap labor, natural resources, and luxury goods (e.g. french LVMH, german cars). Because their smaller economies cannot compete with huge economies on R&D. No wonder the U.S. have promoted free trade for decades. Like a fat kid challenging skinny kids to find out who is the heaviest. Now that China is becoming heavier than the U.S., the U.S. no longer want to play.
He forgot to mention that Europe is running a trade surplus, while the US is running a huge trade deficit. Which I think is kinda more relevant than the size of the businesses in the country?
@@SelfProclaimedEmperor That's great, but of course the living situation is also different. Health Care, security and mobility are different between Europe and the US for example. Payed holidays aswell. But yeah, if you are young, healthy and privileged in the US you can accumulate a lot of wealth quickly. Most of us are not young, healthy and privileged however! ^^
@@bened22 The European cope in this comment section is unreal. You literally can't take criticism, yet you're so eager to criticize America. Adjusted for cost of living (purchasing power parity), the US has the highest median income in the world. In the world - and nothing Europeans can do, will change this simple fact.
@@dasfasdf-gc1yu Let me get that straight: An off-hand comment about one bad american business practice is not taking criticism well. But your answer to that comment is gracefully accepting criticism, right? ^^ Yes, I'm always coping. Ah god, I just wish I was born in the greatest country in the world, the one that is known for taking criticism well!
Have you tried starting a business in Europe (UK excluded), especially countries like France? It's like they are going out of their way to stomp out anyone trying to launch a startup. It's not wonder we don't see companies like Apple or Microsoft coming from Europe. The entire small business approach by European governments needs to drastically change. Big companies don't start big, they start small and if there's no environment to foster the establishment and creation of small compaies, Europe will continue to lag behind other parts of the world. I've built startups in NA and in Europe and let me tell you first hand, there's no comparison.
It's too much of a anti-business mindset in Europe, that sees wealth and profit as bad, which is also a growing sentiment in the US, whereby our big states like NY and CA are seeing alot of businesses and people leave as the costs, taxes and regulations are too high, and crime is out of control.
Added to that, people don't realize that this attitude extends all the way down to small business. Nobody is shedding a tear for the next Apple or Tesla that won't be built in Europe. But why should it take 3 years for a Syrian immigrant to open a corner grocery store, just to get a business license?
@@atomicfly777 Yes on most of that, but Crime is way way down across the country over the last 30 years, despite the horror stories you see in certain news outlets.
It's completely false that American companies don't have to worry about local regulations. The fifty states in the USA have a lot of autonomy and each have different regulations on companies. You might see things like different warranty or privacy policies based on the state you live in (for example in California you might see something in your contract saying you have the right to see exactly what info is being collected about you, as well as your right to have them delete it).
After having lived in both systems, and also in Switzerland it all really comes down to mentality. American children are taught at a young age to do/be anything they want as long as they work to achieve it whereas European society is more about making the safer option, where dreams and aspirations are limited and guided by the parents and society. It stifles the ability for people to be more entrepreneurial and risk taking with investments. The problem is cultural. To sum it in a few words "scared money don't make money".
There's also taxes and regulatory intrusiveness. No one wants to start a company in Germany, end up paying 50% income tax and be forced share power with a union to boot.
I can’t stop laughing tbh 😂 EU just like to heavily tax companies outside of the EU 💀 have you seen how much google pays for its headquarters in Dublin 😂😂
Because 1. The US companies has a huge fund to bail them out if they suffer ( The US government) 2. The EU has a different landscape than the US. The EU does not have such a large focus on fuel and tech as the US and the middle east. 3. Some of the most successful EU businesses actually pays corporate taxes.
We also don't have a unified postal system, so buying and selling things is more complicated ...and it takes longer for things to arrive, leading to local businesses having an edge.
Which would actually be perfectly fine, except small businesses themselves are crippled even more than larger ones by the volume of red tape facing them.
I don't see that as a bad thing. Those American big tech companies have become so big that they can get away with widespread and blatant anti-consumer practices, mostly due to their monopolistic position. They wouldn't be able to do this so comfortably if there was more competition on the market.
They wouldn't be able to do it so comfortably if the government made even the slightest effort to protect consumers, but the same corporations that constantly rip off everyone they deal with because consumers have no choice but to deal with them, also spend billions lobbying the government to reduce regulation. European laws are a lot better at giving the people who live there basic human and consumer rights. Here's a quick one - my unlimited data, phone and text plan on my mobile phone is €10.99 a month in the EU. The same service (With constant robocalls - the last time I was in the US I bought a SIM card and within 15 minutes of it being activated I was already getting spam calls, which suggests the phone company are literally selling new numbers to the spammers as soon as it activates) in the US is more like $50 a month, because all the US phone operators (of which there are 3 or 4 in total) have realized it's much more profitable not to compete with each other at all and rip everyone off. Cell coverage in the US outside of population centers is pretty awful too.
@@mildlydispleased3221 Which is emblamatic of the problem, Europe barely has any new major companies popping up, if they do, at the first chance they get, they hop over the pond to the US. It's not like the US is so young they lack century old companies, P&G was founded in 1837, J&J 1886, Chevron 1879. It's just they're not the most dominant companies any longer.
Europe being monopolized by 100 year old companies like Volkswagen (founded by literal Nazis lol) is not a good thing. The old farts lobby EU governments to kill startups with high taxes so that they have no competition.
A European company can't design a product with mass appeal due to the language barriers, yet Appel and other US companies build products used not just in the US but all over Europe and beyond?
Apple and the like can, but the point is that they can just target English and still have a viable product. They can go add translations later. And more likely this applies to Future Apples, who can skip hiring a localization team until they grow bigger.
The European cope in this comment section is unreal. You literally can't take criticism, yet you're so eager to criticize America. Adjusted for cost of living (purchasing power parity), the US has the highest median income in the world. In the world - and nothing Europeans can do, will change this simple fact.
US is Very violent, (much worse than most industrialized countries), the education system is between the worst compared to developed countries, healthcare is just trash, and the average western european person has a longer life expectancy than american one.
Fellow eu/acc enjoyer. It’s not taxes but friction. In Europe there is friction from setting up and investing in business. US has the Delaware Inc and standardised contracts. This means there is infrastructure to invest easily. In Europe (depending on the country) there can be so many steps that take time and money (e.g. notary for steps where it doesn’t seem useful). India, China are already thinking infrastructure as a platform first: platform for eKYC, banking and more! We can make that change in Europe too! It might take time, but it can accelerate Europe!
I don't think you need to translate your software into all of the European languages. I live in Finland and I see people use their devices in English all the time and that's what I do too. Maybe you do in France or Spain for instance where less people can speak English. But I've seen enough people use tech in English here that it might not be necessary and to me Finnish translations feel more annoying and frustrating than useful anyway.
the smaller the country the less power it has to protect its own language. I live in Bulgaria and here even some products does not have bulgarian text on it. I don't see any cool thing here.
@@Blacknightgr1 He did say Europe xD Not the Eu. EU is just a political organization, Europe is a Continent. It is getting ridiculous how everyone these days can create news and people will just take it seriously xd
@@KomentariramTldr is among the teams that make the most factually accurate news. I know that because they sometimes cover my country, which is never covered properly by anyone on English TH-cam except Tldr. They clearly have high standards for research.
After the Cold War ended, Europe slowly started to move towards socialism, which is a huge mistake. That’s one of the main reasons why making business in Europe started to become impossible. Plus Europe is currently absolutely economically unstable and desperately devastated.
@user-yr4vp1jk7j Health insurance is not a big deal. Europeans think it is the end all amd be all. It is not until you are old. Depending on where you live you can just pay for health care out of pocket. What is important is productivity, wages, competitiveness on the job market etc. Thats going to make a much bigger difference in your life.
I came to Europe to try and expand our business and we've only managed to make a 6% growth in 2 years while in the US we grow 25% each year. The "euro market" is a joke at best, lie at worst
In what business are you in? If you don’t mind saying. Some reason might be: we have a aging population and older people usually don’t need to buy a lot of new stuff and young Europeans although more consumerists aren’t on the level of sk,USA,china ect in Europe most are toned down besides teenagers that like to “flex” on people poorer than them. The country with habits more similar to the USA is the uk and it makes sense.
@santostv. we do marketing and production for business (B2B) and yes first barrier is languages (too many here), but also, too much burocracy, too much taxes while the cost of living is comparable to the US you end up with way less, and yes I totally prefer this health system but I still think taxes are too high specially for small to medium businesses like us
I wouldn't say every market in the US is fantastic. The entire "If it ain't broke, don't fix it" mentality in the US seems insane if you look at how outdated toilet bowls and light switches are in the US. This is why a company like Tesla can grow so fast there. All the old companies are so stuck with the old ways of making money that they aren't willing to invest in new technologies. So, when a company comes with something so different everyone is willing to be part of it. While in Europe you'll see that many companies actually try to gradually improve their products over time. This makes it IMO more difficult to find new customers in (West) Europe, because most companies already tend to have something good going for them instead of something that really needed to be replaced 25 years ago like in the US. This is why your company doesn't grow at the same rate in Europe. I'm pretty sure many companies either already have an alternative company they're working with or simply don't see any value in your "I can make you even more money" sales pitch. Americans are extremely motivated by money. Which sometimes is really ridiculous, charging for the smallest thing that's often free in the rest of the world. So, giving them the hope to make even more will help you find more customers. Europeans are not that extreme.
Because the EU and the US are different. The US was and is a place for people who are willing to do almost anything to succeed. That attitude built and shaped the country for better or worse. Europeans aren't like that and will never be, because it has a different historical and cultural background, shaped by geography. Europe has no space for that kind of people, it sent them out to conquer the whole world.
I don't agree that European companies suck. They are different - in a positive way, I think. Just look at Boeing VS. Airbus. Here you can see all differences within one company. One provides work in different countries & is engineering-driven, the other had been streamlined to please shareholders by sacrificing core competencies.... A complete different example can be seen in fire extinguishers. In the us, 2 producers have a 85% market share at industrial customers. The extinguishers look the same as 20 years back, maximum heavy and nearly all use corrosive powder as extinguishing agent. If I just count producers with a >10% market share, you will find 4 Companies (Gloria, Minimax, Total/Neuruppin, Jockel) alone in Germany, Eurofeu & Desautel in France. This leads to. more competition (Extinguishers are less than half the US price) and more innovation (foam with higher market share than powder, watermist & gel extinguishers as example). I definitely prefer the European appoach....
You can talk about the Boeing VS Airbus comparison, which is fair, although Boeing used to be well-managed until the acquisition of McDonell Douglas. But then there's Boom Supersonic. That's a commercial aviation STARTUP. That's the difference we're talking about. SpaceX and Rocket Lab. Many more. You don't have this competitive advantage with easy access to venture capital, anywhere else. This is the other end of the argument. The US doesn't require financial stability to get your foot in the door-you can figure that part out later. If it works, it works. If it doesn't, it doesn't, but US venture capital funds will provide you the opportunity to make something great.
Criticism here, pls reduce the fillers in your videos Like focus more on new details that matter, and not things that are already common knowledge. And pls avoid reiterating the similar info over and over in a single video.
I don't think the unique regulations in each European country is much of a disadvantage for European companies compared to American companies, because each US state has its own regulations just like the European countries. This even applies to a much lesser extent on smaller levels, for example a lot of counties and cities have their own environmental regulations that impact business operations. My county placed a 5 cent tax on every plastic bag, now nationwide grocery stores have to operate differently here than in other parts of the nation
I’d disagree on 3. You can easily get high quality engineers for pretty fair prices in Europe. There are culture issues though, who will bog them down unless corrected.
3:45 Bogus point: None of those big American companies operates only in America. "There's also more regulation in Europe." Gee, ya think? Over regulation is the biggest problems businesses have. When you spend so much of your time trying to satisfy government regulators, you don't have enough time to mind your business.
Well, when you start business using other country's currency. there is no way you can win unless they throw some bone your way. For US companies to explode big, their hedgefund got access to easy USD. In Europe, fund and bank has to trade for those dollars. It's not a rocket science.
@@ws1814 they price thing in USD but pay in eur when it comes to export. Also, EUR is for EU, not reach country. Each country can't really support their company because they can't print the EUR themselves. It has to be done at EU level. So, they're at disadvantage from the start.
For the sake of a healthy economy, we need both big and small businesses. The problem is - they are all suffering right now from over-regulation, sky-high energy prices (hello, Green Deal) and barriers between local EU markets (different regulations, languages, etc.). What the EU needs is a more common market with less regulation - not the other way around, which is what we're getting now. We either fix that or become irrelevant at a global stage.
Entrepreneur here since 2012, the issue has and always will be access to capital and classism. Tony Blair's son has the most valuable ed tech startup says it all. Anyway I have a global product which I am going to register in Delaware to get those American VC funds because the UK is for muppets.
Ah, another thing to consider in your argument: a big chunk of the US might in tech comes from the US military & intelligence massive investment in the sector. Europe’s mini national militaries have absolutely no chance to compete. Europe is basically held back by its own internal division, because every freakin’ village on the continent thinks they are the best and they should be their own country. 😂
Bro, you couldn't have said it better! I guess you should be from oustide of Europe, since an outside perspective is sometimes necessary to have a broader vision.
That was the case 30 years ago and more. Where the last manifestation of this problem was the Yugoslav war, although the main driving force behind it was serbs being serbs. And our military is pretty great. Combined, we've easily got the 2nd biggest army in the world, combined with invading potential, since France still maintains army bases across the world.
One take I haven't seen people talking about is the fundamental problem within the question. 'European' would entail that these companies are operated throughout the contenant which they very much aren't. These companies are French, British, German, etc. This argument I feel is backed up when looking at when a truly European company is compared to an American one. Airbus compared to Boeing is a shining example that when you have a European company they are better in every way when compared to their American competitor.
I don't think it's a very honest comparison thought. Because market valuations in tech companies are often inflated. Are we really supposed to believe Facebook (Meta) is a valuable company. What value does Facebook offer in reality? While you might have have a manufacturing plant or something like ASML that actually add value to society, and they couldn't be recreated by just anyone, and yet their market cap is supposd to tell us they are comparatively worthless? Market valuations are driven by nothing but marketing, and businesses that sell to consumers tend to get more hype, while businesses that do B2b don't get any hype because the general retail investor doesn't know about them.
I don't think that large companies are good for the economy. They mostly concentrate wealth and power in fewer hands. I think that most of those large tech companies need to be broken up. In general I think that almost all large companies should be broken up. They make the GDP number go up, it may look cool to some people to see a single company worth so much but it is bad for all of us. Europe seems to have a lot more smaller and mid size companies.
@@David_Box I don't care as much about the overall wealth as I do about more normal people. Something like 95% of all the GDP gains in the last 2 years have gone to a handful of people. What good does that do anyone? The number goes up but normal people are worse off. One thing I found, since moving to Germany, is that I don't need as much wealth to have a better life. I don't need a car where I live, I can just walk to the bakery and talk with friends. GDP goes down since I don't consume as much.
@@Immudzen Good on you for finding a way of life that works, I'm not too keen on useless consumption either. I mean to say that most people expect economic growth as their life goes on. This covers spending for fuffuling non-business related activities, raising children, starting organisaitions, saving up for retirment, all things that only really work if the economy keeps growning. Raising GDP for the sake of it doesn't do any good in of itself, but GDP does approximate prospects in the long term. It affects everyone, not just the very rich. Those in countries where growth has stagnated, like Japan or South Korea have had to deal with the issues caused by stagnation, for example.
@@David_Box I think that GDP used to approximate that. I think that companies have basically just started looting the economy and taking everything. I agree with you entirely that life should get better over time and that I do want economic growth but I want economic growth that I can see in more normal people. Europe has been growing overall but not as much as the US but also more evenly.
Large companies aren't necessarily bad. They are efficient and stable, which garners more trust. Mid and small companies can't do most of the thing large companies can provide. E.g., TH-cam can't be run by a mid-size company. Even Netflix is run on Amazon servers. Small companies can't offer video streaming, app stores, etc.
Disappointed the EU's effort in completing a capital union wasn't mentioned it would have been a perfect opportunity to give people knowledge on some of the major solutions.
@@Dave05J How many paid days holiday would you get at Nestle in Switz? How many days maternity (or even paternity) leave? How many would you get at Amazon US?
Europe trying to prevent monopolies… by putting in so many regulations that make it impossible for newcomers to create companies, on top of all the other barriers EU startups already face compared to US startups? Is this an oxymoron? The problem in Europe is that it somehow managed to Out-California California… in the entire continent instead of just one state/province. The one thing California has going for it. At least it’s still got that entrepreneurial environment.
This misses a huge factor and that is how entrepreneurs are taxed. In the UK, someone who creates a new product that changes the market and creates thousands of jobs has to give almost half their income in tax for the privilege. Relocate overseas and they keep most of what they earn. And Europe is not trying to reverse this trend, so we are seeing 1% to 2% GDP growth, which is mostly supported by immigration and not increases per capita where the USA and developing world are seeing double digits.
Another point I missed in the reasoning is the effects the Cold War had on the US industry, from a mainly make, to a highly innovative industry. Massive government funding by means of government needs to stay ahead of your adversaries, creates companies competing to get those contracts. They need suppliers, not only to supply but to help drive innovations, also universities are needed to remain driving this progress. The US was literally reshaped to be on the cutting edge after WW2.
American workers have the most rights. In every state, you can walk up to your boss, say FUCK You, and walk out. No Issues. If your boss goes "bt ill double your pay!" you can stay and or still walk. You cant do that in europe....
Is it really a problem, if the European companies had targeted USA customers first which are more homogenous? Only because a company is European, it doesn't mean they need to target all European countries. Especially if it's technology.
I don't know how people can't understand very basic factors. The US big software companies (seriously don't count ones in hardware) can make obscene amounts of money just due to inherently cheap business expenses and very very cheap capital available thanks to reserve currency. US is the only country which can be as much financially irresponsible as possible. And then just dump the inflation to the rest of the world. Similarly, since 2000s, it was much richer than other developed countries and migrants will obviously choose countries with higher per-capita. This means US has more than enough supply of poor workers to exploit from(well, atleast 3rd world migrants get big salaries relatively). That combined with English language meant everyone from Asia (especially Indians and Chinese) went to US to pursue a career in software field. It is not at all "cultural" nor is EU "too communist" or whatever other bulls**t people are typing here. If EU wants to survive it either needs to develop a local industry or allow Chinese competition to atleast have some leverage.
To pre-empt upset Europeans. I'm a proud advocate of European businesses. I regularly bore my friends by telling them about the issues with the European economy, and how we ought to support European businesses when possible. When making purchasing products, the nationality of the company is almost always a factor in my decision making. That being said, just compared to the powerhouses of America... European business do kinda suck - Jack
It’s true. I invest alot. European companies kinda suck.
TBH: a BIG reason Brexit happened is Europhiles act like the EU is essentially perfect. They're too often not just patriots but cultists.
More criticism of the EU's AI regulations and lack of tech start-ups is fundamentally necessary.
Great content, to keep it accurate please ensure not to confuse the EU with Europe the continent.
No reason to preempt anything.
Most european companies (especially tech) is bought up in its infancy and integrated into the US companies with the vast amount of capital there. Capital markets is just plain better there.
I usually see the American tech companies as a consolidator of tech from around the world (including US itself off cause) that can make all of it into a coherent product that people want to buy.
Although the content is fine, the title is definitely inflammatory, naïve and misrepresents the situation and the interdependence of "both" economies.
Those pesky worker's rights, data protection laws and anti-monopoly rules really take the fun out of business, am I right?
Noo not at all 😂 data protection law? Which one exactly? Those companies outside of EU but not at all for companies inside of the EU
I’m sorry but Nestle of Switzerland is one of the worst companies in the world. So don’t pretend like European companies are somehow more ethical or something.
@@ws1814 not more ethical at all. Exactly the same, difference being sometimes our governments and authorities actually force them to not be so evil. Whilst it’s more laissez-faire capitalism in the us
@@ws1814 No not more ethical no company that tries to make as much money as possible is ehtical. But inside of the EU these companies are held more accountable. Key word inside of EU. Outside of the EU these European companies can still do their regular awful thing
@@ws1814Switzerland isn’t in the EU.
One important aspect missing from this, is that unlike the EU, the USA does not use a value-added-tax (VAT). This means that if one buisness sells a product to another buissness, and then that buissness sells to another buisness and then finally to the consumer, then sales tax is paid at every step of that chain in the USA. This creates a strong incentive for vertical integration, because if you own all those intermediate companies, then you bypass the intermediate sales taxes and have a competitive advantage.
In the EU with the VAT, if your business buys something and then re-sell it or integrate it into a component that you sell, you can reclaim the VAT you originally paid on that product as a tax credit or payout. This makes it actually very practical to have many small, independent businesses to create value chains where each buisness specializes on a very specific product, rather than vertically integrating into a mega-corp that owns its whole supply chain.
So only comparing the large businesses between the EU and the USA can give a very skewed picture.
____________________
Also, I think the point about the unity of the US market is sometimes oversold. Every US state, and sometimes even every county or municipality in that state can have different tax regulations, reporting requirements, consumer rights, environmental regulations, etc for companies doing business there. Very similar to the EU but a bit less extreme
The biggest US companies are tech companies. Software is a short supply chain.
This comment is spot on. VAT kills small and medium enterprises dead before they can get a foothold. I used to run a business, a small one in the UK, and we hit the VAT threshold in our second year. It then became impossible to expand due to the tax bills. I just gave it up as I couldn't afford to pay myself, and got a corporate shill job. If the VAT threshold wasn't there or was set at a few hundred thousand, I could have hired someone to help me out and expanded. Who knows how successful it could have been? We were growing, maybe we'd have been huge, but tax rules in the UK and EU are just murderers of small and medium businesses. Quick edit, I should make it clear I'm referring to this comment above being spot on, and I an referring in my comments to VAT and the VAT threshold in the UK specifically as it's been pointed out I might have been unclear.
@@badluck5647 Apple and Amazon are two of the biggest examples of extreme vertical integration in the US economy, where their standard operating proceedure is to constantly look out for parts of their value chain that it's possible for them to assume ownership over. Microsoft, Nvidia, and Tesla also have pretty strong focuses on vertical integration.
Notice how e.g. Apple owns their phone business, an app store for those phones, a payment processing system for that app store, and now even own a banking business to finance those customer purchases through that payment processing system. In the hardware side, they've switched to their own in-house developed processors, and have been on a quest for over a decade now to replace their iPhone's cellular modems with their own in-house modems. Apple makes their own motherboards, computer cases, screens, etc. The list goes on forever.
@@Phil_AKA_ThundyUK so your argument is the VAT is bad, but @Mason265 argues that it is good :)
@@freefalerYeah, I got confused too.
EU:
- give us a finished product that's already selling
- a 5 year financial plan
- a 30% stake in your company
- pass all regulations before you come to us
= and we give you ~€1 million
US:
- write a good plan
- find people
- build a prototype
- give us 5-10% stake
= and we give you ~$10 million
Why would anyone choose option 1?
Source: my friend's experience in both the EU and the US
This is so true.
And you are being gentle saying EU investors ask for 30%. I've seen them ask for up to 51%
You idiots forget the eu is not a single country and the eu is not comparable to the federal us government and its states. Every member can constantly disagree on things
They are different countries each with their own policies, for example spain cant agree on its business practices with ireland etc so they do it differently, but each country has less resources alone,
Also china literally has even more restrictions than the eu, yet they are far more competitive, your argument is stupid
@@NeostormXLMAX,"fewer restrictions for Chinese companies" apparently translates to "receiving direct funding from the Chinese government".
Gotta work on my Chinese, my bad, my bad.
This video was about 20 seconds of actual content plus 8 minutes of padding
TLDR is going down in content quality
Ye it felt like one of those articles that were written just to trick SEO
Most of their videos are. They didn't show the same graph or chart multiple times in this one, so it's a step-up
I’m surprised Airbus , BP Petroleum, VW and ALDI didn’t make the European Lists
This is based on market cap of publicly traded companies. Aldi is private, and the other ones have very low market cap compared to their revenue/earnings.
US companies tend to have higher Price to Earnings ratio and higher profit margins, and more are publicy traded than in Europe, so for stuff like total market cap of publicly traded companies comparisons, the US absolutely trounces the similarly sized economically Europe. If you were looking at straight revenue of all companies private or public in each region, most of the difference would disappear. This can be seen with fortune 500 global companies by revenue, where Asia is the largest single region nowadays by revenue.
@@ssssaa2 false. Even by revenue and operating income, US companies are bigger and better.
It’s because those cooperates you mentioned are not public in stock markets. That’s why the list and arguments showed in this video aren’t really accurate. If you look at other rankings where private companies are also taken into consideration, you will get another picture and more German brands like Aldi, Schwarz Gruppe, VW, Airbus and Telekom.
Making planes is a hard business. Mistakes are much more harmful to the company than other industries. The A380 failure really hurt Airbus over the past decade and a half. Boeing's recent massive failures will likely help Airbus tremendously though for the same reason.
@@rinmartell2678 Airbus is not a German brand, it's european, and the main headquarters is in France.
Ah of course, ASML would sell their $100m photolithography steppers to more ordinary people if only there weren't the language barrier...
Asml isn’t a young start up but a established business, that what we are talking about.
Funny (or sad) thing is that they don't sell it inside EU because there are no tech companies that use it. They sell it to China (now sanctions but yeah) and USA.
@3:59, Using Europe interchangeably with the EU is very misleading. Europe has 50 countries, and the EU has 27.
Also, Japan has around 125 million in population, but it does not stop many manuals and products coming with Japanese instruction on them.
Where did you get 50 from? There are 39 with the traditional definition. 40, if you wanna include Turkey , but you might aswell include America at that point with their occupied parts of Germany.
@@bennyklabarpan7002 it's 50 according to wikipedia
@@tupadre6433 lol using wikipedia
@@tupadre6433 44-50 according to Wikipedia
@@bennyklabarpan7002 42 countries in Europe, Plus more for Microstates (Of which there are 6) unless you want to go into Balkans drama and pretend nations like Kosovo or Macedonia dont exist in which case 40 + 6 microstates for 46 or 48 in total, possibly another + 3 if your one of those people that consider the Caucuses Europe also.
Two observations, as an American who has spent many years in Europe:
1) Europeans commonly hold the idea that America is one big homogenous culture/market. This is not true. At. All. While it is true that the U.S. market is more integrated than the European market, it still possess and must cater to wildly different cultures. This is particularly notable between large cities (NYC, Washington, Atlanta, Chicago, Dallas, Austin, etc.) and rural areas; indeed, that's probably the single largest driver of our current political polarization. Even beyond that division, however, different regions are very distinct. As someone who has moved from Washington, D.C. to Chicago to, most recently, Atlanta, I assure you that those three cities are very different. The market reflect that. As a concrete example, I'd never even heard of a Publix or Krogers before moving to Atlanta. Here, they are _the_ dominant supermarkets.
2) In my opinion, the European market remains far more fragmented than it needs to be. The fact that companies need to set up a separate headquarters in each individual European state, with different logistics, different management, and different inventories, boggles my mind. That creates an entirely unnecessary layer of management, with all the inefficiencies which it implies. As a concrete example, there were many times when, while living in Barcelona, I couldn't find what I wanted on amazon.es, but lo and behold, amazon.fr or amazon.de had the item in stock. Could I order from them? Sure, but delivery cost three times as much and it would take four times as long to arrive. For a smaller European competitor, that's a huge barrier to overcome.
European policy, it seems to me, remains focused on protecting the domestic industries of each individual state at the expense of encouraging a genuinely European market. Changing policy to encourage a continent-spanning market, with companies identifying as European rather than German or Spanish or Hungarian, might do a great deal to improve European productivity and boost European companies.
I _want_ European companies to compete on an even footing with American, Chinese, and (eventually) Indian ones. I _want_ the E.U. to form a third pole of geopolitics. The first step in that process will be to stop thinking of business and politics as German or French or Polish, and start thinking of it as European.
America so dominant it made an entire CONTINENT band together js to merely compete 😂😂God bless America
@@thyblackpanther Well to be fair America is basically an entire continent itself lol
@@TimothyZhou0 r u acc European?
Very good point!
Sadly won't happen because it's countries who select the leader who has to put their people first
Bruh I’m Dutch and I didn’t know that Marktplaats was owned by eBay…
They sold it in 2020 to a Norwegian company but it was from 2004 to 2020. However this is very typical stuff globally these days. Enormous amounts of European investment exists in the US as well to the tune of trillions of dollars, same the other way around.
Hey Hi, tell me about Dutchland!
Also businesses in Europe have to pay taxes at a higher rate than US companies, and in the US we are a consumer nation....
BRO THOUGHT jroguiehowe;rijgnq43\=owqjnq3u4op
US has high taxes they just don’t pay
Europe is al a consumer union. Just a shittier version with higher taxes. Furthermore, all these idiots form the EU are doing with their big tech regulation acts is lower the standards for startups. For many startiups it is the ultimate goal to be bought outght by a big tech firm, the EU is actively preventing that.
not really. Germany has a 15% corporate tax, US has 21%. Employees are taxed heavily in Europe though compared to the USA. America probably gets the smartest people from Europe thanks to this, cause they can pay much more.
@@SK-cz5wy Does the corporate tax not depend on states in the US?
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What global economic crisis?
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Are mega corps a good thing for society?
No
Absolutely not but the funny thing is that EU does have them just not EU founded companies 😅😅
@@xenotiic8356 funny to say this within TH-cam
No
Sent from your iPhone
In fairness, the Silicon Valley mentality also tends to cause quite a lot of economic chaos. For example by _"Blitz-Scaling"_ new business models like Uber and AirBnB, bankrupting all the traditional competition, and then jacking up the prices again. So maybe Europe is better off without that.
Yes you have China...
Hotels arent bankrupt and Uber is objectively better than cabs for customers
@@pbrown0829 Because AirBNB is now commonly *more* expensive than Hotels, while leading to housing shortages and rent increases in cities. Meanwhile Uber is still trying to kill off its competition in many places, but has already shown it will gladly charge riders ridiculous sums when they can get away with it. "better for customers" is also very questionable... and it only works with VC money and by exploiting their workers, I mean, "independent contractors".
@@pbrown0829 I am using hyperbole somewhat. But there is a trend for putting competitors out of business by burning through venture capital, and then jacking up prices once you've cornered the market.
Uber is better than cabs in many ways. And part of that is genuine technological innovation. But part of it is also just operating at unsustainable profit margins, and gradually transferring more of the cost onto drivers and passengers by stealth.
bankruptcies aren't necessarily a bad thing. if a company doesn't innovate, and its competitor does, then it deserves to go bankrupt.
Facebook is a really bad example. They swept through Europe like it's nothing.
So, you can build a product that is markable in all countries. That's not really the issue.
For the language barrier: Go for English first. You still also have access to the US market from the EU.
And Facebook basically made their users translate Facebook itself, which is kinda mind-blowing.
@@sokacsavok Yeah, so that argument doesn't really fly.
Europe has an issue with innovation due to regulations, lobbying and no financial infrastructure.
@@PhilippBlum Yes, unfortunately.
@@PhilippBlumplus a generally weaker entrepreneurial culture and greater hate/distrust in mega-corps.Both of which is not working in their favor
This video didn't provide much by means of enlightenment, and you point to a perfect example showing this.
We already have economic theories that explain very well the gulf between the US and Europe, and that is taxes and bureaucracy.
You never know though. In the 80's, Japan's market cap in the world was over 50 percent. You never know when a bubble will pop up. Invest at least a little bit into the world index.
The landscape of big tech is dominated by American companies, and there are a few key reasons why. Firstly, the US fosters a culture that thrives on risk-taking and innovation. This is fueled by a constant flow of venture capital, which is essentially investment money specifically for startups. This allows even small, ambitious tech companies to get the funding they need to grow quickly. In Europe, the culture tends to be more cautious, and the investment landscape is more fragmented, making it harder for young companies to secure the resources they need to compete on a global scale.
Secondly, the US boasts a massive, unified domestic market. This allows tech companies to develop their product or service for a large audience right off the bat. Imagine a playground - a big tech company can refine its concept on a vast American "playground" before taking it international. In Europe, things are more like a collection of smaller playgrounds, each with its own language, regulations, and consumer preferences. This makes it more challenging for European tech companies to scale up to the level of their American counterparts.
Finally, the regulatory environment in the US is generally more favorable to tech companies. While Europe enforces stricter regulations on data privacy and competition, which are important for consumers, they can also stifle innovation and growth for young startups. Think of it like training wheels on a bike. While they help you learn, they can also hold you back from reaching your full speed. The looser regulations in the US allow American tech companies to experiment and grow rapidly, although this advantage can come with downsides that require ongoing scrutiny.
On the culture side, Europeans are more focused on their leisure time and summer holidays than putting in the very high number of work hours it takes to build up a massive company that is an innovator in cutting edge tech
You missed the real reason - The US govt set up and funded several of those companies - Facebook, Google. Amazon, Space-X - Have all received massive amounts of state funds. The idea the US is some free market nirvana is so laughable it is untrue.
Also it should be added, Silicon Valley, and American major businesses in general. Also attracts talent and investment form abroad. So Hollywood, Silicon Valley, and the like are major international industries based within the US. They archived the world hub of said industry.
As an American, it's long overdue for tech companies to be reined in.
thanks chatgpt
If you do a sector wise comparison, European companies are competitive. Pharma, aircraft, fab equipment and so on. The difference is in the software sector, which is also the most profitable sector by far today.
That is really odd because there is no real barrier to entry for software.
@@kellymoses8566 the bar to entry is low but its a niche field which does not attract much people, its also really hard to become a good software engineer and a carrer where its really easy to burn out, or set up a successful start up and get enough funding especially in europe.
@@kellymoses8566 There are some tho, the GDPR for example.
you can sum it up in the fact that - we're all watching this on TH-cam, not Dailymotion
@@kellymoses8566 There is for platforms (like social media or online markets). It comes through a lock in effect, though. Platforms get better the more users they have (both in available content and capacity to train algorithms). So if you start late, you're quite fucked.
Europe does a better job of preventing monopolies?
Have they really??
Yup I love it .... Great business models ... UK is not EU ...
This too
Europe has plenty of regulations that favor monopolies but hinder small business entrepreneurship.
Do you know where American companies park their cash to avoid paying taxes? You guessed right, Europe.
You don't like the idea of 5-6 companies owning almost all media in Europe? Are you a communist? /s
The europeans with the adventurer mindset moved to the US where this is still celebrated.
why do us companies still dominate european markets with their language barriers?
the us companies and european companies both face the same issue of marketing and reaching these different countries.
only point out the language barrier or culture seems superficial since they both face the same challenges
what a great video, I love everything he said, like this always make me wonder what it would be like if we hadn't established financial systems all over Europe
yes you are right reminds me of my financial mentor mr Larry kent burton people like them always add to the financial economy one way or another i was able to earn € 13500 in just 1 month investing with him
It’s so amazing to know that the good works of Mr. Larry kent burton are being recognized on platforms like this. Through his help, I was able to buy my first house
This guy sounds so interesting, he comes highly recommended because I have also encountered his name on some of my social media platforms, how can I get in contact with him ?
He's on Instagram *
@ Larrykent_nick_trading__ ^^
5:10 - Ebay lost to a local Allegro in Poland, because Allegro is so much better, even Amazon doesn't do as well as Allegro. Not even close. Why didn't they buy Allegro?
In my country neither eBay or Amazon are hugely popular but we don’t have have a real alternative to Amazon so some order thru the Spanish website after the uk left the eu,aliexpress is somewhat popular and nowadays off course temu is even more popular ,also nowadays online electronics stores websites allows for third party sellers so most buy from there, for the secondhand market OLX is more popular,fb marketplace although vinted is gaining momentum.
So has you can see is still quite fragmented even inside one country.
Maybe because the polish market is not worth it...?
@@eXclusive1 I will copy my response because I can see there are more sharp people here:
1. there are more people in Poland than Holland.
2. Poland is a developing country.
3. It was worth for these companies to move there, so what are you talking about?
Man, think a bit before you write something.
@@gamerconfig_com the other guy said the same thing…the polish market isn’t worth it. I’m sharp don’t worry 🤣
@@gamerconfig_com poland is not a developing country lol
The US has the most and most liquid capital market in the world. Basically, not only does the US have the most capital for startups and expansion, but the capital can be mobilized and utilized much, much more easily and quickly. That is significant.
Yes, US has like several times the wealth of most European countries hence more venture capital available.
@ycplum7062 - You are correct on this point. The capital markets are very liguid and very efficient. A friend of mine from college started his CNC machining business through a small-medium capital company that helped him with the initial investment in a large facility. He grew enough to buy them out and give them a 20% return. He was a talented mechanical engineer and a machinist. He would not have been able to set up a manufacturing enterprise without that capital.
It is also worth noting that investing is different in the US and EU. In the US there is a lot of speculative investing and a big expectation of share price growth. American companies will even forgo dividend payments entirely in service of this share price growth by reinvesting profits. This leads to the massive market capitalisations.
European investors, on the other hand, often prefer to receive steady income through dividends, and this is what European businesses target. European stocks therefore often have greater yields than US counterparts.
@@americaisthebestcountryever It turns out cannibalizing a nations companies as Europe continues to do is negative lacks positives and is unhealthy for the big picture
@@americaisthebestcountryeverthe entire foundation of the stock market as a concept is dividends, you can say it kills growth but stocks don’t really have a point without them
@@americaisthebestcountryever A bird in hand is worth two in the bush. A dividend puts cash in your hand. Mere growth does not. The only way to get money out of growth is by selling your shares. That's not investing, just speculation. Don't get me wrong, you can certainly get money out of speculating, but you have to constantly work on it. You don't retire on speculation. You retire on investments.
@@americaisthebestcountryever No, it isn't. A house is a commodity you buy to use, and a liability because you have to maintain it in order to keep it useful. No different from a car in that respect. You _can_ turn a house into an investment by renting it out, though. If you're just buying and selling, however, that's again, just speculation.
Having the house you built 35 years ago for $100k now being worth $500k is nice when you look at your spreadsheets, but it's not putting money in your pocket that you can use like the income from a rental property would be. Also, rental properties are not a great investment if you take out a loan to buy them. The repayments will just suck up most of the rental income.
@@americaisthebestcountryeverYou say that and yet whose country's companies do stock buybacks just to inflate the price of stocks...
Europe and the EU generally are pretty bad to get a business started in. Even if you have an amazing idea you have to start small, and being small is just un-affordable given the tax systems in the EU/UK etc.
Yea except noone I know has complained about this sort of stuff - do you pay more in taxes? I guess? Does everyone here do? Yea?
@@AlterEgo-en2wx Check the comment from Mason below it explains it in some detail for you.
@@AlterEgo-en2wx Right, but you do understand that this essentially calcifies the existing players (big and small) and discourages any sort of market disruption or entrepreneurship, right? This is how you stagnate. This is how you create brain drain.
Also, this trend extends all the way down to small business. A large number of entrepreneurs are first-generation immigrants because it's easier for them to start their own business than to climb the corporate and social latter in a country that they're new to. Think about the local corner store in your town. In many countries, those are typically immigrant owned.
Given Europe's last 15 years, wouldn't it make sense to make it easier for immigrants to start a small business, not harder?
@@AlterEgo-en2wx No new small companies, no new big companies. You have to start somewhere but if you are taxed by the government to oblivion as a starup you won't grow, nor EU will get new Big companies, only dinasauruses will stay that don't inovate much.
you can sum it up in the fact that - we're all watching this on TH-cam, not Dailymotion
Dailymotion is where you go to pirate movies lol. The site also kinda sucks
You forgot productivity (e.g.: Americans work longer hours with less vacation days) and a high bureaucratic environment
A lot of EU (and Canadian, Australian, etc) tech companies end up doing business primarily in the US due to the larger homogenous market, higher incomes, higher levels of investment into productivity (e.g. into SAAS products), etc. I work in tech in Canada and the past 3 companies I've been at have focused almost exclusively on US customers. The bureaucracy and language barriers of the EU make it difficult to make money there while the vast distances make moving any physical goods prohibitively expensive in Canada and Australia.
Vast distances and differing bureaucracy🤔🤔🤔it’s not at all like the us doesn’t face those same problems but prevails anyway 🤷🏽♂️
@@thyblackpanther the US is densely populated compared to Canada/Australia and has little bureaucracy compared to Europe
@@graham1034 bro WHATTTTT Canada is extremely more densely populated,half their population lives only 50 miles away from the us Canada border(we know why🤷🏽♂️).Same concept applies for Australia where 95% of their population lives in its 5 biggest cities(same for Canada js to a lesser extent).but yeah the difference in state regulations vs entirely different countries regulations is an acc good point,but for the first point what tf r u smoking😂😭😭🙏
@@graham1034 “little beuacracy” is a crazy lie ngl
@thyblackpanther transporting good between large cities like Vancouver, Calgary, Toronto, etc is thousands of miles. Trading to the US isn't as far but international shipping has a lot of extra costs.
3:20 The language barrier is BS
Basically everyone working in Europe's big companies speaks English , we all learn it ...
3:40 That is a bit more valid , but the EU common market has reduced that by a lot
4:33 Again, thats BS , as all of us Europeans basically use American social media apps ... the concept of a social media app "specializing" in a specific country is ridiculous outside of China
The question is , why is there no European social media app that captured the entire world , and basically all social media apps that have done so , are American ... the existence of multiple countries in Europe with different market preferences CANNOT be the answer if everyone in Europe uses basically the same American social media apps
Don't forget that with top stocks the stock price isn't well connected with actual value created
This. You have VW, second largest car producer in the world trading at 10% of value the comparably miniscule Tesla.
Ppl just value american companies more due to no regulation and lack of worker rights. Or just because they are much louder.
Valuation is very mathematical, companies are usually valued based on the amount of future cashflow they can generate and it turns out that European businesses are worse at doing so, and so usually ends up having a lower valuation. You can look at comparisons on banks, energy companies etc. European companies struggle to earn even their WACC back.
Edit: in Tesla Vs VW, Tesla is valued higher because more growth is expected, but growth expectations have been reduced, which is why Tesla's valuation has fallen. It is not as dumb as a company being louder. @@123batina
@@123batina Volkswagen produces 9.2 million cars annualy, Tesla produces 1.8 million. VW revenue: 322 billions, Tesla: 96 billions. Operating income: 20 billion vs 9 billion.
Tesla is growing like crazy, leads the EV sector, has competetive prices AND big margins. VW EVs are overpriced shit compared to Tesla. EU plans to ban EVs so it makes sense to be bullish on Tesla.
@@SK-cz5wy Google it before you say it: "U.S.-based electric vehicle (EV) maker Tesla reported a total revenue of $ 21.3 billion in the first quarter (Q1) of the financial year (FY) 2024, a 9% year-over-year (YoY) decrease."
Decrease is kinda... not growth. Specially not "crazy growth".
You know who is growing like crazy? Cupra. Luxury brand of Seat, part of VW group. Google that as well ;)
Anyways - I dont want to deal with kids and cultist anymore, so Im out of this discussion. Have fun guys.
@@123batina lack of worker rights? are you stupid lmao
Startup culture is very demanding. Pulling all nighters, sleeping on factory floors, nights weekends. That doesn't seem very European. Perhaps they're places in Europe like that?
They would rather accept their 20% unemployment rate and living with their mom until their 40s.
Why the US will always have an advantage over the EU:
1) Innovation.
2) High risk tolerance.
3) No judgement if you fail. Just keep trying.
4) The word entrepreneur is not a bad word.
5) Universities that do tons of research with private sector, federal and state government aid.
6) Productivity is rewarded. Mediocrity is frowned upon.
7) A friendlier business environment.
8) Infrastructure that makes things move. From the postal service to the extensive interstate highway system and railroad network.
9) Common language and laws.
10) Higher skilled labor force.
agree
Railroad network😅😅😅😅! You made my day man😮😅
@@vicdor1031 I think he's referring to freight railroads, which is correct.
@@phil1pdEven when it comes to non freight railroads the gap is starting to close. USA is catching up in that area.
Europe prioritizes consumers over producers, which is great in the short term horrendous in the long term since you basically get out done by more competitive companies. Europe is now experiencing the long term effects of basically living in rainbow land.
This video mentioned only minor factors. If you want to understand the actual reason why these American companies dominate, it’s innovation. They are creating the technologies that are driving the global economy forward. Look at Europe’s largest company? This same factor holds true. Tremendous innovation. If a company innovates and solves a problem or improves quality of life, money will flow their way. There’s a culture that focuses on researching and inventing in the USA and the people with the money to fund it are right beside it. The smartest people flock to this area to make their ideas come to life. I saw a documentary recently where Germany is trying to cultivate something similar to Silicon Valley. It’s good they are doing that. A strong Europe is good for the world.
And that makes Hungary's direction even more of a catastrophic ones: we are basically becoming a polluted trashdumpster and both the mainline culture and policies are hostile to intellectuals, as Orbán tries to push down wages and people into factories. But Hungarian education now fails so hard that people are too stupid for even factory and manufacturing works, they can1t speak English, they barely speak even Hungarian and can't follow written instructions. We are fucked.
Yes but 90% of them also have the most massive recalls in the world right after china 😂 europe builds quality not quantity
Also 90% of the innovators of these so called magnificent 7 are european with HB1 visas 😂 as the country of america itself is a european invention its like a over achiever son competing with his old father 😂
@@THEPRESSTV Two statistics you gave there with exactly 90%. it’s almost like you just completely made those up. What you wrote is false and you know it. And yes of course the USA is nation of immigrants seeking a better life. Many of those that left Europe were either fleeing wars, seeking religious freedom or economic opportunity. Europe has suffered a brain drain to the USA because of World War One and two. That’s a large part of why you see so many American military installations in Europe. Peacekeeping In addition to force projection to keep Russia off your backs. It has come at an enormous cost to taxpayers in the USA. We could probably have free universities and healthcare for all of our citizens if we didn’t protect everyone but then the world would descend into war again.
@@ScentlessSun didnt make them up not one bit all it takes is a simple google search to verify them sadly your prob to lazy to even tie your own shoe laces
Europeans did not flee wars in the may flower they came because they had theyre own sect of Christ others came for richs 😂 because the new world had gold and precious metals to get rich from
And im american my self and im sorry i hurt your feelings snowflake but its true even the name america comes from Americao Vespucci an italian explorer europe invented and breathed life into the USA washington was an englishmen as was jefferson and the others they had a beef with the king not theyre motherland england and its people
Even the most famous cities in america are named after european ones york in england newyork america get the gist
And about you helping these poor countries its not out of the kindness of your heart ill tell you that its taking a page from daddy UKs book of imperial conquest
And YOU WILL NEVER HAVE FREE HEALTHCARE AND FREE UNIVERSITY the US already has the funds for it but the senators and congressman need theyre new private jets and mansions 🤣🤣🤣 dont pin the blame on europeans for greedy american politicians thats are basically trillionars 🤣🤣🤣 foriegn aid is barely 10% of the US yearly budget yet a 900 meter bridge costs almost 100 billion dollars
Infact the US has said if they have free trade with europe the US economy would increase by 20 percent
One simple answer: to much regulation from government
This is just economies of scale.
In many sectors, a bigger company means a more efficient company.
This is especially true in high tech.
E.g. you spend the same R&D money to develop your electric car, whether you sell it to 1 million or 1 billion people.
In a globalized world, the bigger players, i.e. China and the U.S., dominate the high tech sector.
The other countries provide cheap labor, natural resources, and luxury goods (e.g. french LVMH, german cars).
Because their smaller economies cannot compete with huge economies on R&D.
No wonder the U.S. have promoted free trade for decades.
Like a fat kid challenging skinny kids to find out who is the heaviest.
Now that China is becoming heavier than the U.S., the U.S. no longer want to play.
Mic drop.
He forgot to mention that Europe is running a trade surplus, while the US is running a huge trade deficit. Which I think is kinda more relevant than the size of the businesses in the country?
"I'm so happy working at a large american company" says an Amazon employee while peeing in a plastic bottle at work.
A masters degree in computer science bets you $130,000 salary in the US vs $60,000 in Europe
@@SelfProclaimedEmperor And that can get much, much higher if you're among the best
@@SelfProclaimedEmperor That's great, but of course the living situation is also different. Health Care, security and mobility are different between Europe and the US for example. Payed holidays aswell. But yeah, if you are young, healthy and privileged in the US you can accumulate a lot of wealth quickly. Most of us are not young, healthy and privileged however! ^^
@@bened22
The European cope in this comment section is unreal. You literally can't take criticism, yet you're so eager to criticize America.
Adjusted for cost of living (purchasing power parity), the US has the highest median income in the world. In the world - and nothing Europeans can do, will change this simple fact.
@@dasfasdf-gc1yu Let me get that straight: An off-hand comment about one bad american business practice is not taking criticism well. But your answer to that comment is gracefully accepting criticism, right? ^^ Yes, I'm always coping. Ah god, I just wish I was born in the greatest country in the world, the one that is known for taking criticism well!
Have you tried starting a business in Europe (UK excluded), especially countries like France? It's like they are going out of their way to stomp out anyone trying to launch a startup. It's not wonder we don't see companies like Apple or Microsoft coming from Europe. The entire small business approach by European governments needs to drastically change. Big companies don't start big, they start small and if there's no environment to foster the establishment and creation of small compaies, Europe will continue to lag behind other parts of the world. I've built startups in NA and in Europe and let me tell you first hand, there's no comparison.
It's too much of a anti-business mindset in Europe, that sees wealth and profit as bad, which is also a growing sentiment in the US, whereby our big states like NY and CA are seeing alot of businesses and people leave as the costs, taxes and regulations are too high, and crime is out of control.
Added to that, people don't realize that this attitude extends all the way down to small business.
Nobody is shedding a tear for the next Apple or Tesla that won't be built in Europe. But why should it take 3 years for a Syrian immigrant to open a corner grocery store, just to get a business license?
@@atomicfly777 Yes on most of that, but Crime is way way down across the country over the last 30 years, despite the horror stories you see in certain news outlets.
It's completely false that American companies don't have to worry about local regulations. The fifty states in the USA have a lot of autonomy and each have different regulations on companies. You might see things like different warranty or privacy policies based on the state you live in (for example in California you might see something in your contract saying you have the right to see exactly what info is being collected about you, as well as your right to have them delete it).
After having lived in both systems, and also in Switzerland it all really comes down to mentality. American children are taught at a young age to do/be anything they want as long as they work to achieve it whereas European society is more about making the safer option, where dreams and aspirations are limited and guided by the parents and society. It stifles the ability for people to be more entrepreneurial and risk taking with investments. The problem is cultural.
To sum it in a few words "scared money don't make money".
There's also taxes and regulatory intrusiveness. No one wants to start a company in Germany, end up paying 50% income tax and be forced share power with a union to boot.
Also Europeans aren't having kids, startups tend to be by the young and energetic.
Thankfully EU is strong enough to force changes in big tech, like they did to Apple to force more customer friendly attitude
Our economy is bad but at least the UE creating more inconvenient rules to lower growth in Europe 😅
I can’t stop laughing tbh 😂 EU just like to heavily tax companies outside of the EU 💀 have you seen how much google pays for its headquarters in Dublin 😂😂
@@Bowlyfuland the funny thing is that working for google in Dublin you have to pay more % tax then the company itself 😅
Exactly, US governments are literally in these companies back pockets
lmao Euros are such copers lol
In Eu companies cannot fire workers easily like US, hence not able to adapt quickly or take risks.
Because
1. The US companies has a huge fund to bail them out if they suffer ( The US government)
2. The EU has a different landscape than the US. The EU does not have such a large focus on fuel and tech as the US and the middle east.
3. Some of the most successful EU businesses actually pays corporate taxes.
The EU also regulates businesses too much, leading to less competition and innovation
We also don't have a unified postal system, so buying and selling things is more complicated ...and it takes longer for things to arrive, leading to local businesses having an edge.
Which would actually be perfectly fine, except small businesses themselves are crippled even more than larger ones by the volume of red tape facing them.
and yet the EU is worried about iPhone cables being usb-c. wonder when they are going to actually be useful
I don't see that as a bad thing. Those American big tech companies have become so big that they can get away with widespread and blatant anti-consumer practices, mostly due to their monopolistic position. They wouldn't be able to do this so comfortably if there was more competition on the market.
They wouldn't be able to do it so comfortably if the government made even the slightest effort to protect consumers, but the same corporations that constantly rip off everyone they deal with because consumers have no choice but to deal with them, also spend billions lobbying the government to reduce regulation. European laws are a lot better at giving the people who live there basic human and consumer rights. Here's a quick one - my unlimited data, phone and text plan on my mobile phone is €10.99 a month in the EU. The same service (With constant robocalls - the last time I was in the US I bought a SIM card and within 15 minutes of it being activated I was already getting spam calls, which suggests the phone company are literally selling new numbers to the spammers as soon as it activates) in the US is more like $50 a month, because all the US phone operators (of which there are 3 or 4 in total) have realized it's much more profitable not to compete with each other at all and rip everyone off. Cell coverage in the US outside of population centers is pretty awful too.
I'd like to see the total years in business of the "Magnificent 7" compared to the youngest "granola" company.
They or their predecessor companies are all pretty much over 100 years old
@@mildlydispleased3221 Which is emblamatic of the problem, Europe barely has any new major companies popping up, if they do, at the first chance they get, they hop over the pond to the US.
It's not like the US is so young they lack century old companies, P&G was founded in 1837, J&J 1886, Chevron 1879. It's just they're not the most dominant companies any longer.
Europe being monopolized by 100 year old companies like Volkswagen (founded by literal Nazis lol) is not a good thing. The old farts lobby EU governments to kill startups with high taxes so that they have no competition.
@@chinguunerdenebadrakh7022 VAT destroyed the european economy people are paid so little that overall this stagnates growth
A European company can't design a product with mass appeal due to the language barriers, yet Appel and other US companies build products used not just in the US but all over Europe and beyond?
Apple and the like can, but the point is that they can just target English and still have a viable product. They can go add translations later. And more likely this applies to Future Apples, who can skip hiring a localization team until they grow bigger.
woosh
Wrong. Europe lacks dominant tech companies due to regulations and taxes, basically. All else is of minor importance.
The European cope in this comment section is unreal. You literally can't take criticism, yet you're so eager to criticize America.
Adjusted for cost of living (purchasing power parity), the US has the highest median income in the world. In the world - and nothing Europeans can do, will change this simple fact.
EuroPEON hypocrisy
Europeans hate anyone who is better than them. Why do you think they hate east Asians so much.
US is Very violent, (much worse than most industrialized countries), the education system is between the worst compared to developed countries, healthcare is just trash, and the average western european person has a longer life expectancy than american one.
Most of the big companies mentioned in this video are parasites on the human race, so I want less of them not more of them.
Fellow eu/acc enjoyer.
It’s not taxes but friction. In Europe there is friction from setting up and investing in business. US has the Delaware Inc and standardised contracts. This means there is infrastructure to invest easily. In Europe (depending on the country) there can be so many steps that take time and money (e.g. notary for steps where it doesn’t seem useful).
India, China are already thinking infrastructure as a platform first: platform for eKYC, banking and more! We can make that change in Europe too! It might take time, but it can accelerate Europe!
I don't think you need to translate your software into all of the European languages. I live in Finland and I see people use their devices in English all the time and that's what I do too. Maybe you do in France or Spain for instance where less people can speak English. But I've seen enough people use tech in English here that it might not be necessary and to me Finnish translations feel more annoying and frustrating than useful anyway.
the smaller the country the less power it has to protect its own language. I live in Bulgaria and here even some products does not have bulgarian text on it. I don't see any cool thing here.
Basically American businesses come with a lot of drama and you know what they say, "drama makes up for the best content"
Since when Europe has only 27 Countries? 🤦♂️
EU
@@Blacknightgr1 He did say Europe xD Not the Eu. EU is just a political organization, Europe is a Continent. It is getting ridiculous how everyone these days can create news and people will just take it seriously xd
@@KomentariramTldr is among the teams that make the most factually accurate news. I know that because they sometimes cover my country, which is never covered properly by anyone on English TH-cam except Tldr. They clearly have high standards for research.
@@MimOzanTamamogullar Europe as a continent doesn't have only 27 Countries. That is a FACT.
After the Cold War ended, Europe slowly started to move towards socialism, which is a huge mistake.
That’s one of the main reasons why making business in Europe started to become impossible.
Plus Europe is currently absolutely economically unstable and desperately devastated.
Language/culture barrier isn't a problem for the FAANG stocks in Europe. Europe is just not competitive and it is a 3rd rate power
@user-yr4vp1jk7j Health insurance is not a big deal. Europeans think it is the end all amd be all. It is not until you are old.
Depending on where you live you can just pay for health care out of pocket.
What is important is productivity, wages, competitiveness on the job market etc. Thats going to make a much bigger difference in your life.
The fact that the US top companies are tech companies with often times bloated valuations unlike europe’, says all you need to know.
I came to Europe to try and expand our business and we've only managed to make a 6% growth in 2 years while in the US we grow 25% each year. The "euro market" is a joke at best, lie at worst
In what business are you in? If you don’t mind saying.
Some reason might be: we have a aging population and older people usually don’t need to buy a lot of new stuff and young Europeans although more consumerists aren’t on the level of sk,USA,china ect in Europe most are toned down besides teenagers that like to “flex” on people poorer than them.
The country with habits more similar to the USA is the uk and it makes sense.
@santostv. we do marketing and production for business (B2B) and yes first barrier is languages (too many here), but also, too much burocracy, too much taxes while the cost of living is comparable to the US you end up with way less, and yes I totally prefer this health system but I still think taxes are too high specially for small to medium businesses like us
I should go back then, the US is such a booming economy.
@@Limozo What country are you headquartered in?
Western Europe is more expensive and off course city centers are always more expensive
I wouldn't say every market in the US is fantastic. The entire "If it ain't broke, don't fix it" mentality in the US seems insane if you look at how outdated toilet bowls and light switches are in the US. This is why a company like Tesla can grow so fast there. All the old companies are so stuck with the old ways of making money that they aren't willing to invest in new technologies. So, when a company comes with something so different everyone is willing to be part of it. While in Europe you'll see that many companies actually try to gradually improve their products over time. This makes it IMO more difficult to find new customers in (West) Europe, because most companies already tend to have something good going for them instead of something that really needed to be replaced 25 years ago like in the US. This is why your company doesn't grow at the same rate in Europe. I'm pretty sure many companies either already have an alternative company they're working with or simply don't see any value in your "I can make you even more money" sales pitch. Americans are extremely motivated by money. Which sometimes is really ridiculous, charging for the smallest thing that's often free in the rest of the world. So, giving them the hope to make even more will help you find more customers. Europeans are not that extreme.
Because the EU and the US are different. The US was and is a place for people who are willing to do almost anything to succeed. That attitude built and shaped the country for better or worse. Europeans aren't like that and will never be, because it has a different historical and cultural background, shaped by geography. Europe has no space for that kind of people, it sent them out to conquer the whole world.
I don't agree that European companies suck. They are different - in a positive way, I think. Just look at Boeing VS. Airbus. Here you can see all differences within one company. One provides work in different countries & is engineering-driven, the other had been streamlined to please shareholders by sacrificing core competencies....
A complete different example can be seen in fire extinguishers. In the us, 2 producers have a 85% market share at industrial customers. The extinguishers look the same as 20 years back, maximum heavy and nearly all use corrosive powder as extinguishing agent.
If I just count producers with a >10% market share, you will find 4 Companies (Gloria, Minimax, Total/Neuruppin, Jockel) alone in Germany, Eurofeu & Desautel in France. This leads to. more competition (Extinguishers are less than half the US price) and more innovation (foam with higher market share than powder, watermist & gel extinguishers as example).
I definitely prefer the European appoach....
You can talk about the Boeing VS Airbus comparison, which is fair, although Boeing used to be well-managed until the acquisition of McDonell Douglas.
But then there's Boom Supersonic. That's a commercial aviation STARTUP. That's the difference we're talking about. SpaceX and Rocket Lab. Many more.
You don't have this competitive advantage with easy access to venture capital, anywhere else. This is the other end of the argument. The US doesn't require financial stability to get your foot in the door-you can figure that part out later. If it works, it works. If it doesn't, it doesn't, but US venture capital funds will provide you the opportunity to make something great.
Criticism here, pls reduce the fillers in your videos
Like focus more on new details that matter, and not things that are already common knowledge.
And pls avoid reiterating the similar info over and over in a single video.
I don't think the unique regulations in each European country is much of a disadvantage for European companies compared to American companies, because each US state has its own regulations just like the European countries. This even applies to a much lesser extent on smaller levels, for example a lot of counties and cities have their own environmental regulations that impact business operations. My county placed a 5 cent tax on every plastic bag, now nationwide grocery stores have to operate differently here than in other parts of the nation
I would've thought Volkswagen would've been the biggest European company
1. Access to Capital
2. Regulatory Environment
3. Labor Force Skills
4. Apprehensive nature to startups
I’d disagree on 3. You can easily get high quality engineers for pretty fair prices in Europe. There are culture issues though, who will bog them down unless corrected.
@@juliausnope9475The best people go to the US. You earn a lot more in the US, pay a lot less tax and just have way more opportunities than in the EU.
3:45 Bogus point: None of those big American companies operates only in America.
"There's also more regulation in Europe." Gee, ya think? Over regulation is the biggest problems businesses have. When you spend so much of your time trying to satisfy government regulators, you don't have enough time to mind your business.
Is not diversity is suppose to be a strength?
😂
You are on to something
Lets start by earning a bit of grammar. Then we can dive into race relations.
(True brexit geezer 🤦♂)
Apple being bigger than Huawei is a total joke. Then again, nobody knows how big Huawei is, because they aren't listed
Well, when you start business using other country's currency. there is no way you can win unless they throw some bone your way. For US companies to explode big, their hedgefund got access to easy USD. In Europe, fund and bank has to trade for those dollars. It's not a rocket science.
But Europe has the Euro?
@@ws1814 they price thing in USD but pay in eur when it comes to export. Also, EUR is for EU, not reach country. Each country can't really support their company because they can't print the EUR themselves. It has to be done at EU level. So, they're at disadvantage from the start.
For the sake of a healthy economy, we need both big and small businesses.
The problem is - they are all suffering right now from over-regulation, sky-high energy prices (hello, Green Deal) and barriers between local EU markets (different regulations, languages, etc.).
What the EU needs is a more common market with less regulation - not the other way around, which is what we're getting now.
We either fix that or become irrelevant at a global stage.
Entrepreneur here since 2012, the issue has and always will be access to capital and classism. Tony Blair's son has the most valuable ed tech startup says it all. Anyway I have a global product which I am going to register in Delaware to get those American VC funds because the UK is for muppets.
I would add European countries to the list as well. By the way, good luck with your business and VC funding in the US!
Welcome to the land of entrepreneurs and innovation.
I gotta say it’s wild seeing nvidia suddenly being considered an immensely important company
it was only a matter of time tbh, gfx cards always had potential
Ah, another thing to consider in your argument: a big chunk of the US might in tech comes from the US military & intelligence massive investment in the sector. Europe’s mini national militaries have absolutely no chance to compete.
Europe is basically held back by its own internal division, because every freakin’ village on the continent thinks they are the best and they should be their own country. 😂
Bro, you couldn't have said it better! I guess you should be from oustide of Europe, since an outside perspective is sometimes necessary to have a broader vision.
That was the case 30 years ago and more. Where the last manifestation of this problem was the Yugoslav war, although the main driving force behind it was serbs being serbs. And our military is pretty great. Combined, we've easily got the 2nd biggest army in the world, combined with invading potential, since France still maintains army bases across the world.
Can't agree more! More EU unification especially in the defense sector is needed
Small companies are good too. The big companies are so big mostly because they are taking over the small ones.
One take I haven't seen people talking about is the fundamental problem within the question. 'European' would entail that these companies are operated throughout the contenant which they very much aren't. These companies are French, British, German, etc. This argument I feel is backed up when looking at when a truly European company is compared to an American one. Airbus compared to Boeing is a shining example that when you have a European company they are better in every way when compared to their American competitor.
I don't think it's a very honest comparison thought. Because market valuations in tech companies are often inflated. Are we really supposed to believe Facebook (Meta) is a valuable company. What value does Facebook offer in reality? While you might have have a manufacturing plant or something like ASML that actually add value to society, and they couldn't be recreated by just anyone, and yet their market cap is supposd to tell us they are comparatively worthless?
Market valuations are driven by nothing but marketing, and businesses that sell to consumers tend to get more hype, while businesses that do B2b don't get any hype because the general retail investor doesn't know about them.
In the current decentralizing world, European companies are less volatile basically
Not to mention...Europe is not attracting TOP Indian talent....which is the backbone of US high-tech
what's up with this comment section having some of the worst bot-to-bot spam convos I have ever seen?
Another reason is ease of lobbying, easier to lobby us lawmakers than eu law makers.
You forgot anti-trust laws, that are way stricter here.
dear expert, you forgot that europe and european union are not synonyms
I don't think that large companies are good for the economy. They mostly concentrate wealth and power in fewer hands. I think that most of those large tech companies need to be broken up. In general I think that almost all large companies should be broken up. They make the GDP number go up, it may look cool to some people to see a single company worth so much but it is bad for all of us. Europe seems to have a lot more smaller and mid size companies.
The idea is that the EU's overall wealth hasn't increased as fast as the rest of the world, all things considered
@@David_Box I don't care as much about the overall wealth as I do about more normal people. Something like 95% of all the GDP gains in the last 2 years have gone to a handful of people. What good does that do anyone? The number goes up but normal people are worse off.
One thing I found, since moving to Germany, is that I don't need as much wealth to have a better life. I don't need a car where I live, I can just walk to the bakery and talk with friends. GDP goes down since I don't consume as much.
@@Immudzen Good on you for finding a way of life that works, I'm not too keen on useless consumption either. I mean to say that most people expect economic growth as their life goes on. This covers spending for fuffuling non-business related activities, raising children, starting organisaitions, saving up for retirment, all things that only really work if the economy keeps growning. Raising GDP for the sake of it doesn't do any good in of itself, but GDP does approximate prospects in the long term. It affects everyone, not just the very rich. Those in countries where growth has stagnated, like Japan or South Korea have had to deal with the issues caused by stagnation, for example.
@@David_Box I think that GDP used to approximate that. I think that companies have basically just started looting the economy and taking everything. I agree with you entirely that life should get better over time and that I do want economic growth but I want economic growth that I can see in more normal people.
Europe has been growing overall but not as much as the US but also more evenly.
Large companies aren't necessarily bad. They are efficient and stable, which garners more trust. Mid and small companies can't do most of the thing large companies can provide. E.g., TH-cam can't be run by a mid-size company. Even Netflix is run on Amazon servers. Small companies can't offer video streaming, app stores, etc.
Disappointed the EU's effort in completing a capital union wasn't mentioned it would have been a perfect opportunity to give people knowledge on some of the major solutions.
Good to see TLDR actually criticising the EU for a change.
Too often they fall into that trap of thinking it's a cult. 😅
More like, why business kinda sucks when companies have to abide the law.
Prefer less monopolistic and more worker friendly European companies
Tell that to Nestle or ASML
@@Dave05J Tell that to all ur companies then.
@@Dave05J How many paid days holiday would you get at Nestle in Switz? How many days maternity (or even paternity) leave? How many would you get at Amazon US?
And that’s why Europe will die economically
You aren't wrong, but that also means lower and stagnant productivity in return. Not necessarily a bad tradeoff but it does have consequences.
Americans put in crazy amounts of hours, risk everything chasing a dream, a few succeed creating Amazon, Microsoft, Apple, Facebook, Nvidia, Tesla…
Europe trying to prevent monopolies… by putting in so many regulations that make it impossible for newcomers to create companies, on top of all the other barriers EU startups already face compared to US startups?
Is this an oxymoron? The problem in Europe is that it somehow managed to Out-California California… in the entire continent instead of just one state/province.
The one thing California has going for it. At least it’s still got that entrepreneurial environment.
lol
Europe is a continent, the EU is a different thing! You manage to miss other non-EU countries.
This misses a huge factor and that is how entrepreneurs are taxed.
In the UK, someone who creates a new product that changes the market and creates thousands of jobs has to give almost half their income in tax for the privilege. Relocate overseas and they keep most of what they earn.
And Europe is not trying to reverse this trend, so we are seeing 1% to 2% GDP growth, which is mostly supported by immigration and not increases per capita where the USA and developing world are seeing double digits.
Yes, because GDP is all that matters? GDP is useless if it only goes to the top ~1% of the population like in the US.
It’s sad how the government stop growth by having these stupidly high taxes, making all the successful British businesses move abroad
Another point I missed in the reasoning is the effects the Cold War had on the US industry, from a mainly make, to a highly innovative industry. Massive government funding by means of government needs to stay ahead of your adversaries, creates companies competing to get those contracts. They need suppliers, not only to supply but to help drive innovations, also universities are needed to remain driving this progress. The US was literally reshaped to be on the cutting edge after WW2.
Why American workers rights do kinda suck
What rights?
Wel Europeans are kinda lazy compared to everyone else.
Worker’s rights??
Funny words funny man
American workers have the most rights.
In every state, you can walk up to your boss, say FUCK You, and walk out.
No Issues. If your boss goes "bt ill double your pay!" you can stay and or still walk.
You cant do that in europe....
@@MoonLiteNitewhat..? Why couldn’t you?
Is it really a problem, if the European companies had targeted USA customers first which are more homogenous? Only because a company is European, it doesn't mean they need to target all European countries. Especially if it's technology.
Every time you make videos like this it really shows me how ununited the European Union is
Unlike to US, Europe has fairplay restrictions and anti-monopoly laws
Dunno...Boeing, Disney, Tesla?
I don't know how people can't understand very basic factors. The US big software companies (seriously don't count ones in hardware) can make obscene amounts of money just due to inherently cheap business expenses and very very cheap capital available thanks to reserve currency. US is the only country which can be as much financially irresponsible as possible. And then just dump the inflation to the rest of the world.
Similarly, since 2000s, it was much richer than other developed countries and migrants will obviously choose countries with higher per-capita. This means US has more than enough supply of poor workers to exploit from(well, atleast 3rd world migrants get big salaries relatively). That combined with English language meant everyone from Asia (especially Indians and Chinese) went to US to pursue a career in software field.
It is not at all "cultural" nor is EU "too communist" or whatever other bulls**t people are typing here. If EU wants to survive it either needs to develop a local industry or allow Chinese competition to atleast have some leverage.