> Especially the tax code and measures against people succeeding too much like in America.
This is a big one. Why would someone earning €60k as a regular engineer take all of the responsibility of leading a team for only €10k/year more? Anyone actually qualified for that position knows it's not worth the additional money, and anyone that would accept that promotion is only in it for the title and is likely unqualified. Not to mentioned that you only see half of the additional €10k after tax (in Germany).
Equally destructive is the extremely conservative view of success and failure.
Once you’ve failed in a business venture, you’re burned for years before any investor will talk seriously or any bank will touch you. Tax authorities and chamber of commerce will also make your life quite difficult when you do.
I personally know several people who needed to incorporate a new company under their wive’s name after a bankruptcy, to even be able to start a new (successful) business.
I think bankruptcy is quite frowned upon in the US too. It’s not like you can borrow a lot of money, not repay them, and then get another loan there either. Your credit score is toast.
Or: why would they start a business/ side project that makes them some money if you'll barely get to improve your financial situation due to high taxation?
It's much more profitable to continue in an employed Position. Or to marry someone with a low income.
Pssst… if you’re a good software engineer only making €60k in Germany and have been out of uni for at least five years, go look up which large companies are in the IG Metall tariff.
This is a big one. Why would someone earning €60k as a regular engineer take all of the responsibility of leading a team for only €10k/year more? Anyone actually qualified for that position knows it's not worth the additional money, and anyone that would accept that promotion is only in it for the title and is likely unqualified. Not to mentioned that you only see half of the additional €10k after tax (in Germany).