Where is Europe's Google? (Montclair: employment, income, cost of)

[18Montclair]

Article where Europeans ponder an economic sector where they clearly have not been able to keep up with the US-namely technology, more specifically the absence of a "Silcon Valley" there.

Where Is Europeýs Google? - Startup City Blog - InformationWeek

[krudmonk]

"In Europe, if you fail you aren't given a second chance to try again."

That would certainly be quite a hindrance here. Luckily, the American culture is more forgiving.

[Mika>Kimi]

Originally Posted by 18Montclair

Article where Europeans ponder an economic sector where they clearly have not been able to keep up with the US-namely technology, more specifically the absence of a "Silcon Valley" there.

Where Is Europeýs Google? - Startup City Blog - InformationWeek

I was born and raised in Europe. Most of the countries do not have a capitalist mindset, nor system. I guess you could google "red tape" and be sure to see a picture of that continent. As a matter of fact, that is one of the reasons I love this country (though things are changing as many people seem rather happy to exchange freedom/opportunities for more government).

[MikeSJ]

I think it is more than that. In most countries of Europe, laws are enacted to restrict layoffs and if layoffs occur, a large severance package must be paid. The use of temporary workers is also very restricted. I suspect that is one of the main reasons that entrepreneurial spirit is weak and the unemployment rate in Europe has averaged between 7%-11% since the late 1970s.

Quote from Wikipedia:

Unemployment increases the more the government intervenes into the economy to try to improve the rights of those with jobs. For example, minimum wages raise the cost of labour to above the market equilibrium, resulting in people who wish to work at the going rate but cannot as the wages are higher than their worth to business; unemployment. Laws restricting layoffs make businesses less likely to hire in the first place leaving many young people unemployed and unable to find work. The results of both actions lead to less productivity and are claimed to incur a higher cost on society as a whole. The results lead to not just higher unemployment but may increase poverty. This is why the less market oriented countries of Europe often sustain substantially high unemployment rates in comparison to the United States; that is, government induced employment through policies designed to protect the worker. The welfare state then responds with various benefits that are paid for by the middle and upper class which reduces their ability to consume and reduces the incentive to work hard and innovate for all sections of society, as the poor have income without working and the rich see their reward for work reduced. Economists like Ludwig Von Mises, Milton Friedman, Friedrich Von Hayek not only believe that the welfare of society decreases with this kind of intervention but that these economic policies are not sustainable.