Comment by greenraven

9 hours ago

> It's completely missed that small entrepreneurs may also want to take part

This is by design. It’s the same all over the world. The wealthy are not going to just let you compete

Dunno about that. I live in the US. I can start a small business today and the only thing I'd have to do differently is file an additional form on my taxes next year. Yes, that's a simplification that doesn't apply to every situation, but it is still completely accurate.

  • That's pretty much the situation in the UK if you are a sole trader. If you set up a limited liability company, that's a separate entity and has its own tax reporting requirement, but nothing onerous. I am a sole trader, and manage a small company separately from that.

    One thing I have heard of in the USA is the need for a "business licence". I'm not sure what that is or whether it applies to all businesses, so I'm not sure what it would correspond to in the UK. Neither of my businesses needed any licences or permissions to start trading.

    • There's no standard concept of a "business license" in the US either. Generally, the corporate registration / LLC filing is all you need to start doing business as a limited liability company, and you don't need to do anything special as a sole proprietor. Sometimes state and local governments have special requirements for particular types of activity, and require registration to begin operating in a regulated field. City and county governments sometimes have a business tax that you have to pay if you're operating a facility open to the public, and may require the tax receipt to be on display on your premises.

      1 reply →

    • > One thing I have heard of in the USA is the need for a "business licence"

      Where have you heard about that? Because there is no concept of universal business license.

Laws are voted by politicians. Do you mean that most EU politicians are puppets of EU corporations?

It is not the same all over the world. Starting a small company in the US is a breeze compared to what I’ve watched peers in the EU fight against.

  • Back in college (USA) friends would spin up LLCs for the summer just to buy mowers or vans to do yard work. They would hire all the students who didn't get summer jobs. Those hired students would make about 3x a STEM intern makes in western europe today.

  • Interstate commerce also seems to be vastly easier inside the US in comparison to the alleged single market of the EU. The most companies seem to deal with is California-specific regulations. Meanwhile, most companies in the EU eventually opt to create a ton of subsidiaries, basically one per state, to handle all the localized duties that the EU requires.

That is the issue across the entire world. Large corporations can easily bear the cost of regulatory laws, environmental requirements, rules, and regulations. They can also go to great lengths to promote an environment that is almost nightmarish for a smaller company or entrepreneur trying to enter the game.

They create barrier after barrier through their lobbying efforts. A good example is having to pay $50,000 for an inspector to come and determine whether your automatic door opens and closes properly, or to verify that your facility does not have a chimney. A friend of mine who owns a business in Niagara Falls, Canada, had to pay around $10,000 for a wind assessment to determine where chimney exhaust would go once released. He didn’t even have a chimney. They ended up having to have another inspection to verify they didn't have a chimney.

Many of these environmental laws are intentionally created and applied to small businesses as well, even when the cost of meeting the requirements is greater than what the business could realistically generate in sales.

The result is that large corporations can absorb these costs, while small businesses and entrepreneurs are often priced out before they even have a chance to compete.

well said. like WB said, "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

The US is wealthier, has more billionaires and has fewer of these barriers for small entrepreneurs. So no, this is not the monocausal explanation that applies equally everywhere.

(YES, the US has regulatory capture, YES the wealthy attempt to use it, YES we should try to eliminate it here too, but it remains true that it is easier to run a small business in the US, while having more billionaires. There are other explanations to the differential here).

  • Agreed, europe has a culture of "stability" first. The fear of disruption and chaos is larger after two WW and it outsourced the risks of disruption to the US. Basically, use the us as a test-mouse for new ideas and innovations, then when proven safe introduce them and ride those coat-tails to infinity.

    • > use the us as a test-mouse for new ideas and innovations, then when proven safe introduce them and ride those coat-tails to infinity

      What actually happened, and continues to happen, is that Europe and the EU became entirely dependent on US tech and other foreign industry. It wasn't just a matter of "see what works and then copy it domestically". It oursourced basically everything.

      1 reply →

    • Is fetishizing disruption good for USA? It did helped to create a billionaire oligarch class, but that class is literally intentionally destroying it. I mean, it may end up destroying Europe and the rest of the world too, but the US democracy seem to be their first target.