Why does Europe not have Startup's - Page 2 - Politics Forum.org | PoFo

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#15132506
Atlantis wrote:Since the US dominates the world's finances, it is obvious that the world's money will be drawn into the US. It is a function of US imperialism. For example, a European investor investing in a European company may do so via the NY Stock Exchange. For Europe to be able to compete on an equal footing, the Euro has to become an international currency on a par with the dollar.

I guess the following is related to this thread.

New policies to help startups flooding in across Europe


Silly. Exchanging currency is trivial. European exchanges have higher trading fees and getting data from them is expensive, I guess because they lack scale and competition and are less efficient.

But that is hardly relevant for venture capital. If I had to make a guess it's risk-aversion and market fragmentation that makes it difficult for startups to grow big fast in Europe.
#15132723
Istanbuller wrote:Milton Friedman explained it perfectly. Watch this please, @Varilion .




Please explain this one. How is the EU helping businesses?


completely delusional about the actual reality in how big companies and markets work.

Big companies can distort the free market in large numbers of ways (using the government is one way but there are many others that do not use the government)

There is no such thing as the free market and even if it did exist it would immediately be manipulated to an unfree market,

Freeman just propounds theories that are totally divorced from how markets actually work. useless.
#15134213
Oxymoron wrote:let me rephrase... how can startups happen when your taxes are over 50%?
How can you run a company when there are regulations up the ass?

You should first try to answer that question in relation to American start-ups! Why do they choose the overtaxed and overregulated California over say Nevada or Delaware?

You know nothing about the EU. The EU is big, there are 27 different countries each with their system of taxation and taxes vary a great deal, much more so than in the US, which has federal taxation - that sort of levels out the system to great degree, no matter what taxes the individual states impose. Not so in the EU, in Eastern Europe there are countries with flat taxation that goes from 10% to 20% for most types of income, or various options like 1%-3% turnover tax instead on income/profit tax on certain types of small companies, etc.

In general when it comes to commerce and consumer goods, the EU market is more competitive than the US market. In the US large corporations can do all sort of anti-competitive things like fixing minimum prices for distributors(illegal in the EU), dictating who can do business with who(based on geographical or perhaps other criteria), lobby for regulations that are hard to conform to by small companies etc.

On thing is true: the culture of venture capitalism is much, much stronger in the US! Particularly in California/Silicon Valley. That's why many more American start ups succeed and turn into large corporations!
#15140949
Istanbuller wrote:Milton Friedman explained it perfectly. Watch this please, @Varilion .

Please explain this one. How is the EU helping businesses?


I forgot to come back to this earlier. Regardless of discussion on whether rules are good or bad - You have to take it in historical perspective. The european economic community and the signle market were born in the '50-'60 and the bulk of the regulation is nothing but an effort of armonizing already existing regulations among the different countires. The same goes on today, where the EU tries to define standards which can be applicable in all its member states.

The story of the evil european regulation coming from above, from the bureaucrats in Bruxelles is dominant in english media, but not much in the "continental" ones. This because the UK joined the EU (ehm, EEC) later and had to adopt the existing regulation. If you talk with French, Italians or Germans you will notice that they are more concerned about the fact that rules in other countries in the EU might not be so strict as at home in some area of particular interest for them (food, data & privacy, etc...).

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