Why European Businesses Kinda Suck.

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America has thirty companies in the top 50 around the world, but Europe has a fairly meagre nine. So in this video, we’ll unpack this growing disparity and why Europe is languishing in the wake of America’s Magnificent Seven.
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[@TLDRbusiness]

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

[@TheBooban]

It’s true. I invest alot. European companies kinda suck.

[@TheMagicLemur]

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.

[@flyorr]

Great content, to keep it accurate please ensure not to confuse the EU with Europe the continent.

[@TS71240]

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.

[@victormelodasilvaferreira680]

Although the content is fine, the title is definitely inflammatory, naïve and misrepresents the situation and the interdependence of "both" economies.

[@Mason265]

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

[@badluck5647]

The biggest US companies are tech companies. Software is a short supply chain.

[@phooogle]

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.

[@Mason265]

​@@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.

[@freefaler]

@@phooogle so your argument is the VAT is bad, but @Mason265 argues that it is good :)

[@VAULT-TEC_INC.]

@@freefalerYeah, I got confused too.

[@alexstoica1727]

Those pesky worker's rights, data protection laws and anti-monopoly rules really take the fun out of business, am I right?

[@Revokefarleft]

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

[@ws1814]

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.

[@luisthoppil6163]

@@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

[@maka6134]

@@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

[@janpiorko3809]

@@ws1814Switzerland isn’t in the EU.

[@paulsz6194]

I’m surprised Airbus , BP Petroleum, VW and ALDI didn’t make the European Lists

[@ssssaa2]

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.

[@SK-cz5wy]

@@ssssaa2 false. Even by revenue and operating income, US companies are bigger and better.

[@rinmartell2678]

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.

[@hgbugalou]

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.

[@truth-uncensored2426]

@@rinmartell2678 Airbus is not a German brand, it's european, and the main headquarters is in France.

[@framboosmatroos9392]

Bruh I’m Dutch and I didn’t know that Marktplaats was owned by eBay…

[@ssssaa2]

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.

[@duck4834]

This video was about 20 seconds of actual content plus 8 minutes of padding

[@gabrielroman4535]

TLDR is going down in content quality

[@ziggi4553]

Ye it felt like one of those articles that were written just to trick SEO

[@ycplum7062]

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.

[@Bernd123]

Yes, US has like several times the wealth of most European countries hence more venture capital available.

[@RagnarinVa]

@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.

[@yayekit]

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?

[@yayekit]

Source: my friend's experience in both the EU and the US

[@parametr]

This is so true. And you are being gentle saying EU investors ask for 30%. I've seen them ask for up to 51%

[@NeostormXLMAX]

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

[@NeostormXLMAX]

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

[@yayekit]

​@@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.

[@dux_bellorum]

Also businesses in Europe have to pay taxes at a higher rate than US companies, and in the US we are a consumer nation....

[@azumishimizu1880]

BRO THOUGHT jroguiehowe;rijgnq43\=owqjnq3u4op

[@UltimateArts13]

US has high taxes they just don’t pay

[@deeptoot1453]

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.

[@SK-cz5wy]

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.

[@r.a5765]

@@SK-cz5wy Does the corporate tax not depend on states in the US?

[@luketimothy]

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.

[@DaDARKPass]

Translation: European investors are d+mb, and would rather destroy any economic growth there could be so they could instead get dividends.

[@DaDARKPass]

@@Cdxu22121 It's the complete opposite. People cling onto "sustainable" income, even when in the long term it's far more harmful. There's a reason many companies in America abandoned dividends - they harm a company's ability to grow by having to spend a bunch of money paying investors.

[@the_expidition427]

@@DaDARKPass It turns out cannibalizing a nations companies as Europe continues to do is negative lacks positives and is unhealthy for the big picture

[@vera_ah]

@@DaDARKPassthe 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

[@DaDARKPass]

@@vera_ah I think we have very very different interpretations of what the stock market is meant to be, and it's clear only one of our interpretations has actually allowed for innovation and growth.

[@Stepbystep74]

Are mega corps a good thing for society?

[@xenotiic8356]

No

[@Revokefarleft]

Absolutely not but the funny thing is that EU does have them just not EU founded companies 😅😅

[@joeeeee8738]

@@xenotiic8356 funny to say this within KZbin

[@Mrdresden]

No

[@stillcovalent]

Sent from your iPhone

[@PhilippBlum]

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]

And Facebook basically made their users translate Facebook itself, which is kinda mind-blowing.

[@PhilippBlum]

@@sokacsavok Yeah, so that argument doesn't really fly. Europe has an issue with innovation due to regulations, lobbying and no financial infrastructure.

[@sokacsavok]

@@PhilippBlum Yes, unfortunately.

[@thyblackpanther]

@@PhilippBlumplus a generally weaker entrepreneurial culture and greater hate/distrust in mega-corps.Both of which is not working in their favor

[@alvarojneto]

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.

[@andybrice2711]

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.

[@logician3641]

Yes you have China...

[@pbrown0829]

Hotels arent bankrupt and Uber is objectively better than cabs for customers

[@MegaBanane9]

@@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".

[@andybrice2711]

@@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.

[@DontReadMyProfilePicture566]

Don't read my name!

[@lm_b5080]

you can sum it up in the fact that - we're all watching this on KZbin, not Dailymotion

[@benshiotsu8553]

Dailymotion is where you go to pirate movies lol. The site also kinda sucks

[@nesseihtgnay9419]

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.

[@PelosiStockPortfolio]

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

[@richardevans560]

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.

[@AL-lh2ht]

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.

[@stevenhenry5267]

As an American, it's long overdue for tech companies to be reined in.

[@CmdrTobs]

And the attitude is awful in Europe. Buisiness is literially seen as a 'scam' by half the population. Profit is seen as greed or theft rather than virtious exchange and a source of funding for new investement.

[@lord_of_love_and_thunder]

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]

That is really odd because there is no real barrier to entry for software.

[@bekiryuksektepe3967]

@@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.

[@olemai]

@@kellymoses8566 There are some tho, the GDPR for example.

[@lm_b5080]

you can sum it up in the fact that - we're all watching this on KZbin, not Dailymotion

[@altertopias]

​@@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.

[@Nightheart.]

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.

[@hannah60000]

@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.

[@bennyklabarpan7002]

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.

[@DontReadMyProfilePicture566]

Don't read my name!

[@tupadre6433]

​@@bennyklabarpan7002 it's 50 according to wikipedia

[@nutsackmania]

@@tupadre6433 lol using wikipedia

[@Dimi.g0v]

​@@tupadre6433 44-50 according to Wikipedia

[@graham1034]

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.

[@thyblackpanther]

Vast distances and differing bureaucracy🤔🤔🤔it’s not at all like the us doesn’t face those same problems but prevails anyway 🤷🏽‍♂️

[@graham1034]

@@thyblackpanther the US is densely populated compared to Canada/Australia and has little bureaucracy compared to Europe

[@thyblackpanther]

@@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]

@@graham1034 “little beuacracy” is a crazy lie ngl

[@graham1034]

@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.

[@yevgeniygorbachev5152]

Ah of course, ASML would sell their $100m photolithography steppers to more ordinary people if only there weren't the language barrier...

[@santostv.]

Asml isn’t a young start up but a established business, that what we are talking about.

[@bened22]

"I'm so happy working at a large american company" says an Amazon employee while peeing in a plastic bottle at work.

[@SelfProclaimedEmperor]

A masters degree in computer science bets you $130,000 salary in the US vs $60,000 in Europe

[@MimOzanTamamogullar]

​@@SelfProclaimedEmperor And that can get much, much higher if you're among the best

[@bened22]

@@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! ^^

[@dasfasdf-gc1yu]

@@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.

[@bened22]

@@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!

[@ibrahimyusuf677]

I'm favoured, $27K every week! I can now give back to the locals in my community and also support God works and the church. God bless American .

[@Milliebright-sr4dl]

As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

[@PhilipJackson-zd9bi]

As a beginner investor, it's essential for you to have a mentor to keep you accountable. Myself, I'm guided by Anna Davis. A widely known crypto consultant

[@PhilipJackson-zd9bi]

She's a licensed broker here in the states

[@jacobadams-ov2hp]

I know this lady you just mentioned. She's really good with and on her job. She's helped a couple of families and individuals' finances

[@Justtheword-tj7xg]

Started with 5,000$ and Withdrew profits 89,000$

[@vealtt]

It's quite funny how in this video not once has it been mentioned that ASML is actually one of the most important companies in the world, tech and politically wise.

[@MimOzanTamamogullar]

ASML is the only one, though

[@A190xx]

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.

[@yavvivvay]

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.

[@MyLittleMagneton]

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.

[@alvarojneto]

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.

[@poondaddy9992]

and yet the EU is worried about iPhone cables being usb-c. wonder when they are going to actually be useful

[@phooogle]

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]

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?

[@phooogle]

@@AlterEgo-en2wx Check the comment from Mason below it explains it in some detail for you.

[@noseboop4354]

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).

[@ummyhorse7791]

Seriously! Not the bureaucratic inertia nor politics?!

[@MPedich]

Europe does a better job of preventing monopolies?

[@AbbasKhan-ey9kv]

Have they really??

[@user-ec3rm9wr1n]

Yup I love it .... Great business models ... UK is not EU ...

[@DonaldDucksRevenge]

This too

[@artvandalay7632]

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.

[@veduci22]

You don't like the idea of 5-6 companies owning almost all media in Europe? Are you a communist? /s

[@ThoughtFission]

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.

[@atomicfly777]

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.

[@phant0]

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.

[@peglor]

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.

[@kevincronk7981]

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

[@muhinyi]

great analysis, even better than what I expected

[@admiralvelar3040]

You forgot anti-trust laws, that are way stricter here.

[@uetzel]

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!

[@rmtab6511]

Don't forget that with top stocks the stock price isn't well connected with actual value created

[@123batina]

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.

[@SKAOG21]

​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

[@SK-cz5wy]

@@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.

[@123batina]

@@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.

[@god-of-war-fan]

@@123batina lack of worker rights? are you stupid lmao

[@Immudzen]

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]

The idea is that the EU's overall wealth hasn't increased as fast as the rest of the world, all things considered

[@Immudzen]

@@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.

[@David_Box]

​@@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.

[@Immudzen]

@@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.

[@axa3687]

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., KZbin 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.

[@vesogry]

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?

[@santostv.]

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]

Maybe because the polish market is not worth it...?

[@vesogry]

@@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.

[@eXclusive1]

@@vesogry the other guy said the same thing…the polish market isn’t worth it. I’m sharp don’t worry 🤣

[@becc_snipe]

@@vesogry poland is not a developing country lol

[@vihaannimbalkar53]

Also, as long as I have worked Almost every European from every other country is lazy except Brits and Germans and a few Scandanavian countries

[@peterm.2385]

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....

[@rufioh]

Imo European countries need to do stuff like invest in some semi conductor manufacturing because it creates vulnerability in the European economy if anything happens in Taiwan. And for a chip foundry close proximity to ASML would be great.

[@davidblair9877]

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.

[@thyblackpanther]

America so dominant it made an entire CONTINENT band together js to merely compete 😂😂God bless America

[@TimothyZhou0]

@@thyblackpanther Well to be fair America is basically an entire continent itself lol

[@thyblackpanther]

@@TimothyZhou0 r u acc European?

[@josemiguelmatos3452]

Very good point!

[@oadka]

Sadly won't happen because it's countries who select the leader who has to put their people first

[@alphaxalex1634]

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.

[@dulio12385]

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.

[@oneiropagides342]

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. 😂

[@josemiguelmatos3452]

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.

[@electricspeedkiller8950]

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.

[@oadka]

Can't agree more! More EU unification especially in the defense sector is needed

[@ahwhite1398]

I'd like to see the total years in business of the "Magnificent 7" compared to the youngest "granola" company.

[@mildlydispleased3221]

They or their predecessor companies are all pretty much over 100 years old

[@chinguunerdenebadrakh7022]

​@@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.

[@SK-cz5wy]

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.

[@the_expidition427]

​@@chinguunerdenebadrakh7022 VAT destroyed the european economy people are paid so little that overall this stagnates growth

[@PHIL_123]

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.

[@onsokumaru4663]

This was very insightful

[@mrreziik]

In the current decentralizing world, European companies are less volatile basically

[@bp63]

Can TLDR Business make a video on Novo Nordisk alone?

[@rook1196]

They sell insulin at a 1000% markup in the states, that's why they are a big company. America's awful pharma patent laws are worth more to Denmark than Greenland is.

[@bookbagfox]

I don't really think having giant, all-controlling tech firms is a good thing in the first place.

[@rmmvw]

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".

[@ricardoblikman2676]

In addition, Europeans and politicians really have look with disdain to people trying to earn a lot of money on their own efforts and risks. It is almost a crime and and most countries are stuck in collectives and income equality. This means you get manhandled from every angle especially taxes (you are not a large multinational yet so you wont reap those tax benefit's) you get discouraged at every corner when you even try so it is better to start in the USA and go to Europe. In addition you also need to arrange stuff before you do it where as in the USA there are a lot less rules and you can do everything and fix stuff later and as a bonus the consumer laws are very good in Europe e.g. 2 years guarantee, right of recalling etc which makes stuff expensive. Labor laws, again expensive if you hire the wrong people you will have to pay a lot! and to finish it off 1001 Carbon emission laws which makes everything expensive and 10% EU tax on stuff outside the EU (e.g. almost everything since there are little to no factories here anymore). I did not include high real estate prices those also count for the USA.

[@atomicfly777]

America is getting there though, steadily drifting towards the same type of anti-business mindset which limits growth, California and NY people and businesses are leaving in droves, also due to rising crime.

[@ricardoblikman2676]

@@atomicfly777 I have the feeling all those rules and costs is just getting created to destroy the medium and small businessowners so multinationals bars any competition, just like how they do it with certifications

[@ScentlessSun]

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.

[@Wind-oh-Wishp]

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.

[@tiagofreitas7659]

Great video, give me more

[@gileswilliams3014]

Pretty decent video. Surprised!

[@Harroi]

Why American workers rights do kinda suck

[@Hasanaljadid]

What rights?

[@donkey7921]

Wel Europeans are kinda lazy compared to everyone else.

[@TNOBasedBatov]

Worker’s rights?? Funny words funny man

[@MoonLiteNite]

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....

[@Greyalien587]

@@MoonLiteNitewhat..? Why couldn’t you?

[@jaredfontaine2002]

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

[@jaredfontaine2002]

@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.

[@ratiuvictor9533]

You forgot that also Europeans companies also employs well payed European workers whyle 99%of the employers of Big American companies are Chinese or Indians who are pays 5 time lower wages then their European counterparts. What if let's say Apple would have move their factories from China to Detroit. Their profit would be smaller becouse now instead paying a salary of 30k for a Chinese worker now they would need to pay 80k for a American worker.

[@baikeiast5255]

Because american can't afford shit if everything was built in usa😅😅😅😅😅

[@answerman9933]

6:30. So an economic zone that is beset with regulations applies more regulations?

[@Komentariram]

Since when Europe has only 27 Countries? 🤦‍♂️

[@user-nq5ok7tn7u]

EU

[@Komentariram]

@@user-nq5ok7tn7u 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

[@MimOzanTamamogullar]

​@@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 KZbin except Tldr. They clearly have high standards for research.

[@Komentariram]

@@MimOzanTamamogullar Europe as a continent doesn't have only 27 Countries. That is a FACT.

[@yellowboeing6030]

Dunno...Boeing, Disney, Tesla?

[@DanielNiklaus]

You nailed it. I run a Swiss and a California Company. It was baffling to experience the vast difference the market size made when I entered the US. You know it, but you don't until you experience it.

[@Simplicity4711]

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.

[@starseeker1334]

Thankfully EU is strong enough to force changes in big tech, like they did to Apple to force more customer friendly attitude

[@Bowlyful]

Our economy is bad but at least the UE creating more inconvenient rules to lower growth in Europe 😅

[@Revokefarleft]

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 😂😂

[@Revokefarleft]

@@Bowlyfuland the funny thing is that working for google in Dublin you have to pay more % tax then the company itself 😅

[@LaSombraa]

Exactly, US governments are literally in these companies back pockets

[@DontReadMyProfilePicture566]

Don't read my name!

[@paulbo9033]

This is overstated. I personally couldn't care less about bragging rights of European businesses who are just as bad when it comes to avoiding paying their fair share of taxes as their American counterparts, but most large US companies mentioned are monopolistic, rent seeking, defacto unregulated utilities, who's business model relies on putting Main-Street out of business and arbitraging workers rights. Of all the companies mentioned it is ASML that is the best and that is European. They are the closest to the "flying cars" in "we wanted flying cars, instead we got 140 characters". Am actually useful and productive company as opposed to an endless pointless content machine that on balance probably does more harm than good (no offense to this channel or YT which I avidly consume). But granted NVIDIA is also another actually useful company. Besides judging companies based on valuation is a misnomer, most are grossly overvalued by their own admission and of course the companies listed on the exchanges with the deepest capital markets are more likely to have higher valuations. We should judge success by what they are actually positively contributing in the real world. Thanks for coming to my TedTalk

[@gdf_6c]

Bravo! 👏👏👏

[@ws1814]

Yeah and top European cimpanies are Nestle and LVMH. One is an awful company notorious for its activities in Africa and the other a pretty useless handbag company that entertains the elite and the oligarchs.

[@santostv.]

Nobody cares about value to society if we cared 80% of jobs wouldn’t exist . An American company can evade taxes the same way an European companies can although with different methods,a tech company can hire remote workers nowadays ect Nowadays companies are more global than ever, one of the biggest supermarket chains in my country is incorporated in the Netherlands but it was started here, most tech companies operating in Eu are in Ireland. So the question would be how much the a eu/European earns in taxes from a foreigner company versus a European one, would be more,the same or less? Because you can’t taxe stock value until you sell it.

[@paulbo9033]

@@santostv. Goodness me where do I start with this one. 1. I didn't mention the words "value to society" you did. I was talking about productive value, but now you mention it they should be a value add to society. 2. As someone who actually has worked in the tech sector it is not so easy to just hire remotely, that's not how it works. Highly dependent on the position. Most roles cannot simply be done remotely. 3. "You can't tax value until you sell it". Lols, many countries have taxes on stocks held. a 1-2% tax on stocks held regardless of whether they are sold is not uncommon in a number of countries - the Nordics being the most obvious example. Try again.

[@santostv.]

@@paulbo9033 ok, productive value but we run into the same issue or no? What it means productive value? 2.I confess I don’t know a lot about hiring for tech but was more about the fact that today it easier to do it and there’s some people that boost about doing it, earning usa salaries while continuing living in Europe or for a small minority moving from the usa to Europe 3. I didn’t know about that, in my country I think is only when selling them but still why the Nordic have good % of international successful companies although in the “tech” most were sold to foreigner companies?

[@harrybrick9907]

The population of the US is 335,000,000 not 300,000,000 as you showed on a map. Any other errors?

[@go-live]

I feel that you don't understand the concept of win and lose. The bigger the company, the less tax they pay, the bigger the salary gaps, the lower quality of products, the worse the consumer level support, ... the list goes on. Obviously scale is important but it reaches a peak where quality is replaced by repeatability and profit.

[@zachb1706]

The lower quality produces? Big companies build products that could never exist otherwise. Just look how far Nvidia is pushing GPUs, they couldn’t happen if they were small.

[@siegfried19888]

I can assure you, America culturally is not homogenous at all.

[@Siranoxz]

But in English they are.

[@fastingman4726]

Yeah that was a mind-numbingly flippant comment. The people in California and Oklahoma are almost nothing alike. Just like people in Montana have almost nothing in common with the people in Massachusetts. Those are four states culturally are not even slightly homogeneous!

[@siegfried19888]

@@fastingman4726 and don’t forget the urban and rule divide

[@scifino1]

Well, relative to Europe as a continent, they are. Which languages do you need to speak to address just about all consumers in the US? English. Which languages do you need to speak to address every consumer in every European country? English, German, French, Spanish, Portuguese, Dutch, Flemish, Luxembourgish, Icelandic (if that counts), Norwegian, Swedish, Danish, Finnish, Russian, Estonian, Lithuanian, Latvian, Belarusian, Polish, Ukrainian, Romanian, Czech, Slovakian, Slovenian, Hungarian, Croatian, Bosnian, Serbian, Greek, Italian, Maltese, and I'm sure I forgot some.

[@fastingman4726]

@@scifino1 bruh, I spent two weeks in Europe and traveled to six countries: all of those countries citizens (aside from the elderly) I interacted with spoke English. German and Dutch citizens I noticed had far more in common than Californians and Oklahomans. You should travel in the United States and see how different these areas are despite using the same language.

[@josephjones4293]

I like how this guy assumes people and seattle and people in abilene arent as different as dutch and germans

[@sokacsavok]

Do they speak different languages and have massively different history and culture?

[@answerman9933]

@@sokacsavok But is not diversity suppose to be a strength? the EU should be much stronger than the US with all of its diversity.

[@sokacsavok]

​@@answerman9933 Well, you have to remember this video is about "market cap" which only says that a lot of people a buying the stock. It's helicopter money. The company doesn't have to earn it, one stock becomes a meme and it makes their stock skyrocket. It makes some people very wealthy (for now), but it can also change very quickly when eventually the bubble bursts. Europe has a lot of diversity, lot of small countries, whom has a lot of smaller companies, less "success", but also less "regular" million dollar homes. There is no silver bullet.

[@khanbw]

They are similar enough that any corporation that takes off in Seattle will be guarenteed to be successful in Abilene too.

[@fairalbion]

UK-to-US transplant here. First point is that there is an absolutely insane bonkers amount of venture capital here... smart people prepared to lose their shirts, taking calculated risks seeking the next big thing. This fuels lots of startups. Most fall by the wayside but the few that succeed can go stratospheric. Second is the culture of risk-taking. It's incredibly easy to set up a company in the US... minimal red tape... and lots of people have a side hustle outside their main jobs. Insecurity, risk-taking and willingness to go out on your own is encouraged. If your mom & pop operation fails, nobody looks down their noses at you; the attitude is "Sorry to hear, better luck next time." IMHO the EU should look at loosening up the rules & regulations: capital flows to where it's most welcome.

[@DivinesLegacy]

The US maximises growth at any possible extent. One example is immigration. The US has good future prospects which is why people invest, europe is full of declining population former communist nations that don’t speak the same language and don’t want to hurt their culture. Not a good place for growth. Investors don’t care about culture or the crime rate. They only care about if a number increases. The US doesn’t care about national identity, culture changing, demographic shift, etc. meaning that the US will grow. The more globalist you are the better.

[@dermeisterdesspiegels3518]

That's a pretty accurate description. I'll add social democracy and left leaning politics to the root of European anti-business and anti-risk attitude so yeah... When Americans do say that we're socialist in Europe with paid leave and paid healthcare (the latter being quite bad)... they do make a good point.

[@Viviko]

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.

[@BigBoss-sm9xj]

lol

[@elirane85]

I love the people that complain about how horrible California is for business but also complain that all the tech giants are in California. It's amazing how people can literally hold opposing contradictory opinions in their head.

[@jamm8284]

Them damn workers rights and living wages, how dare europe do that when the €1trillion companies could be worth €3T instead 🤣🤣

[@Siranoxz]

And who benefits of that 3 trillion?.

[@JakoWako]

Living wages? Have you compared the wages to the price of houses in these countries?

[@liberalbias4462]

These American tech workers make more money than European leaders. Lolololololololol. America has a problem with poor people not people who work at Google or Facebook.

[@jaylxxxi1908]

A living wage LOL

[@SK-cz5wy]

lmao Euro salaries are pathethic compared to american

[@davidlewis5929]

The biggest issue is the puzzle of EU laws for doing business. In the US you basically have one set of laws that provides you access to the complete economy but in the EU you have many different laws that seem to only exist to create obstacles for companies from a different country to do business there. As an example of something simple like an invoice, in the US there are very few rules but as long as you meet them you can do business in all of the US, in the EU there are different rules for France, Germany, Italy and Portugal (could be more but those I remember). In the US a business needs to have one legal entity and one set of books which is good for all the states but in the EU you need to setup legal entities in each country (once you hit a sales number there) and several countries have rules around how your books need to be reported there which are not consistent.

[@boomer3494]

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.

[@wakaboomnick]

MURICA ! FUCK YEAH! COMING AGAIN TO SAVE THE MOTHAFUCKIN DAY YEAH!

[@jarnMod]

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]

But Europe has the Euro?

[@DontReadMyProfilePicture566]

Don't read my name!

[@jarnMod]

@@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.

[@YS9-9]

What about the stock markets and valuations? What about lobbying?

[@user-xv5lv3bh3k]

You forgot productivity (e.g.: Americans work longer hours with less vacation days) and a high bureaucratic environment

[@alfredl.b.6631]

The question itself is wrong. You don’t want behemoth monopolies that can bully lawmakers and consumers - you’d rather like competition. The US just has unrestricted domestic monopoly regulation (and legal bribery through lobbying).

[@Dave05J]

Google is not a monopoly, Microsoft neither. Nvidia neither. Amazon neither. Apple is the only company in the Magnificent 7 that kinda is.

[@DontReadMyProfilePicture566]

Don't read my name!

[@scifino1]

@@Dave05J How is Apple a monopoly? They're not the only big manufacturer of anything.

[@williammuthee2474]

That's actually a good thing

[@jaylewis9876]

The europeans with the adventurer mindset moved to the US where this is still celebrated.

[@Budach11]

Dont need big corporations, here there is an emphasizes on local business

[@EcomCarl]

Such an insightful breakdown! 🌍 The challenges Europe faces with big tech dominance and venture capital dynamics are crucial considerations for startups navigating the global market.

[@ashishpatel350]

America focuses on more productivity per employee. Eu business wants less productive employees to increase employment

[@bac1881]

That's incorrect. American workers are less productive compared to Europeans

[@InfinteIdeas]

1. Access to Capital 2. Regulatory Environment 3. Labor Force Skills 4. Apprehensive nature to startups

[@juliausnope9475]

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.

[@rennteam8815]

@@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.

[@answerman9933]

Is not diversity is suppose to be a strength?

[@whitenoisewhale4342]

Bet you didn't realize my dude is wearing two different t-shirts throughout the video 👀

[@Limozo]

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

[@santostv.]

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.

[@Limozo]

@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

[@richardevans560]

I should go back then, the US is such a booming economy.

[@santostv.]

@@Limozo What country are you headquartered in? Western Europe is more expensive and off course city centers are always more expensive

[@onee]

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.

[@DaviCarneiro-uo5pw]

Looking forward to Tim Apple's next AI announcements

[@FernandoPerez3h.]

yes

[@cookmyflower]

No you Cook the Apple first.

[@DontReadMyProfilePicture566]

Don't read my name!

[@user-sz3rd5qk9l]

That's important how on the video picture America is represented by companies of one citizen-nation, while Europe is represented by companies of a bunch of nations.

[@whyamiwastingmytimeonthis]

6:16 …excuse me, bytedance?

What's interesting is that virtually all american tech giant companies depend on ASML tech.

[@Harroi]

Prefer less monopolistic and more worker friendly European companies

[@Dave05J]

Tell that to Nestle or ASML

[@yvosjauw6661]

@@Dave05J Tell that to all ur companies then.

[@richardevans560]

@@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?

[@LlnusTechTips.]

And that’s why Europe will die economically

[@graham1034]

You aren't wrong, but that also means lower and stagnant productivity in return. Not necessarily a bad tradeoff but it does have consequences.

[@TheMagicLemur]

Good to see TLDR actually criticising the EU for a change. Too often they fall into that trap of thinking it's a cult. 😅

[@aswinhanagal4293]

3:59 I don't think this is actually as big of a reason. American services tend to do great in Europe, German cars are popular worldwide, ASML has a near monopoly in its field. I think Europe has basically made a tradeoff to attempt to be a bit more socialistic (not in a bad way) than the US at the cost of growth of its businesses. The US has decided that making more money makes more sense to us (cultural difference) and tries their best to support businesses more. Neither is right nor wrong, but both have significant tradeoffs

[@rutessian]

being socialists.. is always bad in the long run.

[@sampotter4455]

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?

[@crash.override]

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.

[@wafercrackerjack880]

woosh

[@notusneo]

Wait Nestle isnt american

[@baronvonjo1929]

Yeah? What did you think it was? It's Swiss. Also one of the most evil corrupt companies on the globe.

[@maka6134]

No its not

[@daveSoupy]

I gotta say it’s wild seeing nvidia suddenly being considered an immensely important company

[@MrGnorts]

it was only a matter of time tbh, gfx cards always had potential

[@leedex]

0:12 Aramco use to be partly owned by a US company (Arabian-American Oil Company).