Australia - increasingly a reflection of a decaying Europe.
Europe is, very sadly, dying. Economically, socially, and demographically. And this disease is contagious and spreading to Australia.
As a sample, see this piece in today’s Wall Street Journal. Scratch out Europe for Australia and it will read the same:
The Tech Industry Is Huge—and Europe’s Share of It Is Very Small
Here are a couple of quotes:
Europe lacks any homegrown alternatives to the likes of Google, Amazon or Meta. Apple’s market value is bigger than the entire German stock market.
Oh and, Google’s, Amazon’s and Meta’s market value is bigger than the entire Australian economy.
The continent’s inability to create more big technology firms is seen as one of its biggest challenges and is a major reason why its economies are stagnating.
Gee. And the Labor government’s INSANE superannuation tax will make matters worse by choking capital to emerging and start up businesses.
Investors and entrepreneurs say obstacles to tech growth are deeply entrenched: a timid and risk-averse business culture, strict labor (sic) laws, suffocating regulations, a smaller pool of venture capital and lackluster (sic) economic and demographic growth.
A timid and risk-averse business culture, strict labour laws, suffocating regulations. Where have I heard that before?
A big reason why Europe is now behind can be summed up as a lack of speed. Entrepreneurs complain that everything takes longer in Europe: raising money, complying with local regulations, and hiring and fi ring workers.
Hmm. I think I have heard this before also.
Labor laws slow down worker mobility by making it harder to hire and fi re workers.
Until the past year or two, stock options in most European nations were little used because they were taxed as income before they vested.
Taxes are higher, and regulations designed to corral big business become a costly and time-consuming headache for startups.
Was this about Europe or Australia?
No doubt the Australian government is on the case. This is nothing that more taxes, more subsidies, more central planning and more regulation can’t fix.
