If the trickle down percentage is equal then the problem in the US is extractive labor unions; if US workers get a smaller percentage of the billing rate then the problem is extractive behavior by contractors. These problems require different solutions, so any attempts at cost control would need to determine which of these possibilities is in force.
US healthcare costs will also almost certainly feed into higher employee compensation for American workers. European employers will be paying into health care in some form or other (either through taxes or private insurance) but overall healthcare costs in Europe are far lower than in the US.
Each contractor has to report what they paid to each employee so that nobody is screwed. The idea was that the government didn’t want jobs to be done by cheap labor and they set a wage floor that corresponds to local union labor rates.
The wage difference can be quite drastic - floggers pay jumps from $15 Pernod to about $32 per hour where I live.
More info: https://en.wikipedia.org/wiki/Davis–Bacon_Act_of_1931
> The idea was that the government didn’t want jobs to be done by cheap labor
To be more specific, they didn't want the jobs to go to black workers.
Remember a bitch by a VC that tech workers weren't benefiting from the high wages he was paying so much as land lords.
That. Financialization and rent seeking in the US acts as a privately imposed tax on real economic activity. That shows in in things like why my company has moved every five years since the early 2000's. Our lease expires. The rent doubles and we move.
Want to fix this; prune back the finance and healthcare industries.
“For example, in New York, the number of workers at the face of the tunnel can be up to four times the number of workers required in Germany or Austria for similar projects.”
I appreciate 2-3x overtime as a means of encouraging fully filling out the workforce at single rate. Overtime should be for true need, not a factored in norm.
It should encourage the employer to avoid overtime, but at that rate I would guess it also encourages the employees to do overtime.
Inefficiencies like this should be the enemy of both political parties. They’re why Republicans complain about Government inefficiency and waste, and they’re holding progressives back from accomplishing everything they’d like the government to do.
This feels like it’s basically a matter of labor NIMBYs enriching themselves at the general public’s expense.
Although to the extent that labor unions finance local political campaigns, one wonders if it isn't perverse incentives all the way down...
Any multiyear project has political ramifications and your funding could get pulled. Better to be short on staff and bill overtime now rather than have have lots of staff and then get your funding pulled later.
Any input on the impact of guarantees? Is this not something we do? Is it irrelevant because if funding isn’t there, they evaporate?
(I don’t know anything about how this actually works)
A lot of government contracting is about the process of extracting the money. Multi-year contracts can be particularly fraught with risk--Can a lawsuit shut you down? Will some Senator come shake you down to score "See how much money I just saved us?" points. Did some other project supersede your priority? Did a budget shortfall take 15% out of everybody?
It is simply smart behavior to front load payments and back load execution if you are a company dealing with the government. If you get really lucky, you bank a bunch of money, don't do anything, and then the project gets canned. If you get really unlucky, you bank the money, don't do anything, and then the project flares up in importance and you get slammed by the now looming deadline (see: the original ACA government website debacle).
Some if it is also that companies will optimize to the rules. Do bids go to lowest bidder always? Okay, then the companies will optimize to low bid and charge through the roof for change orders. Is the company responsible for maintenance? If not, then you can be sure that the project will be built to the absolute minimum quality that can be countenanced and leave the maintenance nightmare to somebody else.
You get what you actually incentivize even if it isn't what you necessarily wanted.
Could this strange state of affairs be the result of a political system that is highly polarized and less fundamentally democratic than the Canadian and European system?
I suspect some of that dynamic lives on.
Practically speaking, there is no differences in the freedom Canadian and European citizens have regarding expression compared to Americans even though EFFECTIVELY certain types of speech are restricted (e.g. holocaust denial)
That is because the list of restricted speech is incredibly miniscule, and there are strong protections in place otherwise that prevent a "slippery slope" situation from occurring. ("First you ban me from freely speaking about the holocaust not happening, next you ban me from criticizing the president!")
Practically, non-US democracies have demonstrated a stronger commitment freedom of assembly and freedom of the press than the US has over the last 4 years.
The only difference is that in the US these protections are guaranteed by an effectively "sacred document" that supercedes all laws (The constitution)
But it is more and more clear that that is a bug not a feature of the system, and is causing legitimate harm as your supreme court is getting stacked with "textualist originalists" who think that the wisdom of slave-owning cotton farmers applies unquestionably to 21st century technology and societal concerns.
And this is before we even get into the question of what it means for something to be "democratic", which is to say there is a "Democratic electoral process", which we're about to find out just how much the US process has been degraded as seemingly HUNDREDS OF THOUSANDS of people's votes will either be not counted, or will be denied the opportunity to vote. What is happening in the US would be impossible in any other Western Democracy.
As you say, the commitment to basic democratic rights is considerably stronger in other western countries than in the US. The kind of abuses the Republican party habitually conducts with the aim of disenfranchising Democratic voters would not be tolerated elsewhere; this is reflected by the fact that the US constitution only explicitly prohibits certain forms of electoral discrimination (i.e. it's a blacklist policy) but does not explicitly grant a right to vote.
1) Post an approving image of weed on Facebook
2) Write ACAB on Twitter (this one also got a journalist arrested)
3) Have a shirt that says "ruling party - thieves" (which, as an aside, is pretty accurate)
4) Are a journalist and publish an article which the court rules has caused "mental pain" to suing party (usually politicians and judges - this happens all the time)
You are delusional to think the European media is freer.
The U.S. ranks 45th in press freedoms. There are 25 European countries who rank better. Heck, there are even 5 African countries who rank higher.
https://en.wikipedia.org/wiki/Press_Freedom_Index
This infamous clip from The Newsroom might shed more light on how the U.S. is actually doing in comparison to other democratic countries (all statistics quoted are easily verified if you want to look into it) https://www.youtube.com/watch?v=wTjMqda19wk
“Yes you have fewer free speech rights in Europe and Canada but that doesn’t actually matter”
https://www.ips-journal.eu/topics/european-union/voter-suppr...
The spread in riding (electoral district) size in Canada only varies by a factor of 4.5 if the (mostly unpopulated) northern territories are included (the three territories have one MP, each, to represent populations of less than 30,000) and a factor of 1.5 among the populated provinces.
Canadian federal governments are generally comprised of whichever party received the largest share of votes nationally. This is not always the case in the US.
I'm going to disagree with you on this. In Canada, the general votes usually result in 1/3-1/3-1/3 split between the Conservatives, Liberals, and NDP. It's our first past the post system for MPs that results in the uneven split at the final tally. The only reason that the system hasn't succumbed to gerrymandering as badly as elsewhere is that district changes must be prompted by a change in the number of provincial seats from the census. The changes themselves are proposed by an unelected third-party with members chosen by the judiciary of the province and the speaker of the house (who is chosen by the MPs through a secret ballot vote). Otherwise, it would be all too easy to gerrymander an election in Canada and end up in the same situation as the US.
Contrast this with countries that use proportional representation which means everyone's vote basically means more or less the same as anyone else's vote.
The US is currently ranked 25th in the world by "democracy ranking"
On the other hand, we do use proportional representation (single transferrable vote, STV) to elect the senators for each state, which is different from the first-past-the-post method the US uses. In a normal election, half of a state's senators are up for re-election; exceptionally, the government may call a special "double dissolution" election, in which the whole Senate is re-elected, if the Senate repeatedly refuses to pass legislation sent to it by the House of Representatives. Our use of STV means that minor parties (Greens on the far left, One Nation on the far right, various centrist/populist independents and other small parties) end up controlling the balance of power in the Senate. Some people don't like that because these minor parties end up sometimes extracting all kinds of concessions from the government in exchange for letting government legislation through.
I think some kind of unequal representation – like the Australian and US Senates – is essential for a federal system to work. Look at the United Kingdom – England has almost 85% of the population, so a big enough majority in England can always overrule the other three smaller constituent countries (Scotland, Wales, Northern Ireland), and there are no constitutional mechanisms to prevent that from happening. That's a large part, I think, of why the UK looks like it isn't going to last, with Scotland likely to break away sooner or later, quite possibly followed by Irish reunification some years further down the track, and once its just England and Wales, maybe even Wales will eventually decide to follow Scotland's example. If the British House of Lords was more like the Australian and US Senates, and gave the smaller constituent countries the ability to block an English-dominated majority, then the UK would be more likely to survive.
edit: CA accounts for 15% of the US GDP
U.S. is at place 25 and is categorized as a flawed democracy, lower than Canada and some European countries (but far from all).
Electoral college
“47.2 percent—nearly half—of the German population held a formal vocational qualification in 2016”
From: https://wenr.wes.org/2018/06/could-germanys-vocational-educa...
Germany, at least, keeps costs low by using the common market to depress wages. Housing supply in the dominant cities is very tight vs. wages. See Berlin and Munich.
Yes, why wouldn't be there? Speaking strictly for Romania (from where I'm from) the Bucharest underground in the 1980s and almost all of the big hydro-dams projects (which also require extensive tunneling work) were carried with Romanian engineers only (we received the help of the Soviets in the early 1960s for the hydro works, though). And to be honest that question in itself is a little "orientalist", but I'll just pass over that part of the post.
> If there are then good for them, but I still don't get why qualified people would accept so little
Because wages are still pretty low in countries like Romania (and I guess in Poland and Bulgaria too, to give just a few examples), $30 per hour is more than enough. Plus the engineers themselves alone are no good, the project is based on the people who actually have to dig the stuff out, for them $30 per hour is double more than enough.
Great specific question! Because Romania isn't a signatory to the Washington Accord, which is the mechanism by which these engineering degrees get recognised for chartership by other countries.
https://www.ieagreements.org/accords/washington/signatories/
It's a simple fact that chartered engineering societies don't accept many overseas degrees! It's very hard to get chartered from overseas unless you've been to a few very notable universities. Even being listed on the European Engineering Education Database isn't accepted.
https://www.engc.org.uk/glossary-faqs/frequently-asked-quest...
I think only you've brought up chartered engineers, which, obviously, not everyone involved in construction labor will be.
Parts of Eastern Europe have had an industrial base since the 1800s. Indeed, the Czechs have been making cars since 1905. Of course Eastern Europe trains qualified construction workers.
How are they getting accredited to work in the US or UK?
Requiring everyone to have a degree, even to do simple stuff, would be absurd. If you do in the US, then that is the reason for high costs.
European unions are either dying with dwindling influence (France, Britain, Italy), or just a proxy for social welfare and compensation negotiation (Germany, Netherlands, Northern countries).
It makes for accomplishing smaller projects near prohibitively expensive. And typically you can't gang together multiple projects in order to optimize labor usage.
Honestly, I have very mixed feelings about the arrangements I have to work with.
That 70$ 'overhead' charge.
This was 10 years ago but I knew developers making $60/hour in salary while being contracted out for 3 times that amount.
Those devs should have listened to patio11 (Patrick McKenzie)'s advise, and directed built a relationship with the companies they were being contracted out to.
on edit: added in California.
Yeah, not the best example to go with. If the numbers on HN are at all accurate, it's not uncommon for a FAANG employee to make more than a DOCTOR in North Carolina.
that's why I chose it as an example to compare with the wage of somebody who does hard physical labor underground with a significantly higher chance of injury https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4667042/ - relevant quote:
"However, there is still a relatively high incidence of labour accidents during tunnel construction when compared to incidence rates in the construction industry in general. During tunnel construction, rock fall events at the cutting face are a particularly characteristic of the type of accident that occurs."
A conservative/republican commentator would take this as evidence/proof of the indisputable superiority of the American system - truly it is a land of opportunity where people can make 2-3x more than in supposedly rich Europe.
A progressive/democratic commentator would instead point out that the LIFESTYLE a laborer can have in Europe at 30$/hour is in many ways superior to that of the equivalent American worker - they have full healthcare coverage, a prolific public transit system, and free university tuition for their children.
Then the counter-counter argument would be that the American worker could have a full house, 3 cars, and the FREEDOM to choose to spend money on their healthcare vs something else for their lifestyle, whereas the European laborer is in a system where a lot of choices are made for them.
Pretty interesting stuff.
You could reframe it as, “every German tunneler is paying a $40/hr non tax compulsory payment to someone’s kids in Germany’s ownership class.”
Anyone who travels to Europe is shocked at home, food, and car sizes. Sure there is beauty and history, but the standard of living seems significantly worse off.
There may be something to be said about safety nets, but it sure was a wakeup call for me.
Edit- don't get hung up on the sizes comment, it's merely an expression of wealth differences.
Signed, tested a year in Dallas.
Would I move back there in the near future? No. Is it comparable to any first-class European city? Definitely not. Is it on par with NYC/SF/DC? Not really. Los Angeles (where I currently live)/Seattle/Atlanta? Somewhat. Heading in the right direction? Definitely.
[1] Unless you're talking about DFW suburbs. In which case, once you cross the city line, try not to lose your soul in all the cookie cutter subdivisions.
Yes, depends what you value more. Ford Expeditions and Chevrolet Suburbans and F150s or not worrying about your fellow citizens’ healthcare.
I'm trying to understand this comment. I'll flip it the other way as a European Brit visiting the US.
Homes: You have an entire continent, with only 400 years of (European) habitation, so you have a lot of space. Your home building is also largely after the invention of the motor car. In Europe we have, are, and will, walk everywhere. So everything is closer together, and so are the houses.
Food: not quite sure what the issue is with European food, but as a European in the US, I'm astonished at how little fresh food and meat there is. If it's wrapped in plastic, I have no idea how old it is. Ugh. If I ask a butcher for a cut of meat, I know that meat has only been hung for a certain time, and on display for a certain time. Similar fruit and vegetables, and fish, and bread and so on. A massive bag of chips, or a gallon of high fructose corn syrup is not an achievement.
And then car sizes. European roads are historically dictated by horse and cart. In the US, you have Eisenhower and the freeways... after the invention of cars.
Don't get me wrong, I like the USA. I've spent about 5 years of my life, cumulatively in the USA. I think the European fantasy, is seeing America, and realising (from a European perspective), how much the USA could benefit from doing some European things. I want to just walk to the shops, or cycle down the road.
High speed rail would be an absolute game changer for you guys. Connecting up SF and LA, or NY and Phili, but you (or rather your politicians) just don't get it.
It's not the first time I've talked about it on HN, but from an EU point of view making a connection between house/car/food size and standards of living is baffling.
Humanity has probably spent ~5,000 years with the aristocracy upgrading their dwellings to something larger and more permanent than a closet-sized hovel. Same for possession of personal conveyances larger and more capable than one's own two feet. We can debate whether it is healthy, or philosophically ideal, but it certainly isn't a uniquely American phenomenon, and shouldn't be baffling, when viewed in the context of human civilization's habits of material acquisitiveness.
As for the housing... you can buy a cheap big house in bumfuck nowhere or a smaller place in the city. I guess just like in the US.
Did you live somewhere in Europe, or did you just visit on a holiday?
The grass is always greener on the other side of the fence.
> Americans have insane amount of disposable dollars compared to Europeans and they also spend like crazy
That's the other side of the fence. Most Americans you noticed had insane amount of disposable income, the ones you don't register possibly don't. In average the disposable income is higher in the US than in Europe, but so is the income inequality.
There are up-sides and down-sides to each systems.
"Although the material and equipment costs are similar (within 10%) for projects in the United States and in Europe, labor costs are substantially higher in the United States as outlined above. For example, in California the average billing labor rates for qualified tunnel workers is about $70/hr and the average New York labor rate of qualified tunnel workers is at over $100/hr, whereas in Germany (one of the high labor rates countries in Europe) the comparable labor rate is about $30/hr."