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Comment by DiscourseFan

4 days ago

Labor costs are lower. The US has the highest cost of labor in the world for many jobs that would be relatively inexpensive elsewhere.

Russia probably has state owned poles.

In most US places, utility companies own the poles and it’s ridiculously expensive to lease space. Urban areas with competitive ISPs usually have government owned poles or leases for streetlight arbs that allow them to string fiber.

  • That's a weird analysis of US policy. Very few places in the US have privately owned poles. What most places have is private poles on public right of way. It's a worst of both worlds scenario. Where somehow public infrastructure is used to exclusively further private interests.

Average salary nowadays is 800-1000$/mnt (after 30-40% taxes), I would expect internet price in US to be proportional to their labor costs

  • Yes the average salary of an internet installation technician is about $25 an hour or about a 1000 a week before taxes. Although, the people doing regular installs and the people who are in charge of planning and building out networks are different and often the latter are paid far more.

Why is labour so expensive in the US? Is it because of healthcare costs being passed to employers?

  • Fun fact, the US has always had some of the highest wages in the world- even dating back to colonial times before 1776. Adam Smith did a detailed accounting of them, going occupation-by-occupation and noting that American colonist wages were higher than on the British mainland. (I'm excited because I literally just read this last night. I would link if I could to the specific pages in my book).

    I believe the standard explanation is that most of the colonists were British (already a high-wage country at the time), and you really had to pay skilled labor to get them to leave & settle on a new continent. Plus labor mobility between the proto-state governments of the time (Virginia, Massachusetts, etc.)

  • Mostly because most people have lots of options for employment and they typically don’t take the low options. In a place with nationalised healthcare you would still be paying for it through taxes paid by the labourer but I guess the system would be a bit more progressive than in the US so lower-skill labour would demand a smaller premium for healthcare. Though I think there’s probably more than just labour costs in the US. Eg maybe it is expensive to get the right permits to install fibre optic cables.