Comment by gmueckl
5 days ago
No, this article gets its core premise wrong: labor laws are not the main issue. The issue is that if I wanted to found a new company, I'd be confronted with lots very strict regulations with lots of implications and induced overhead. The list is too long for a HN comment.
It's not impossible to overcome, but it is an added commitment for any new company. Founding is not very attractive and that's why we don't get that many crazy wild bets here (Tesla was one initially too).
Are labor laws not a regulation?
I will accept your argument that there are additional onerous regulations on top of that. But that seems like the same "core premise".
No, labor laws are fine exactly as they are. Not importing US style at will hire and fire culture is an asset. That's all budgetable and relatively minor. If you are seeing a need to downsize your company early on, the fundamental mistakes already happened way earlier by choosing a path that was unsustainable. Such a company doesn't usually have a future.
If European style labor practices were advantageous in a competitive market then there wouldn't need to be regulations.
> The issue is that if I wanted to found a new company, I'd be confronted with lots very strict regulations with lots of implications and induced overhead
Yes, like for example you have to actually pay your employees for the time they work, and give them a certain amount of paid annual leave
This is something anathemic to USian companies, who see skilled workers as essentially disposable single-use devices.
Is what I wrote confusing? I have nothing against labor laws in the EU. It's that there are a lot of other well meaning regulations that bog down young businesses. They are mostly justified, but they are also pretty daunting chores for founders.
Can you give specifics there? Which laws "bog down" businesses?
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Yes regulatory burden is my best bet as to why Europe has produced almost nothing of worth aside copying uber and doordash. Skype was cool for a moment there.