Germany Sucks
- Germanys 42% top tax bracket starts at €57k per year (If you earn over 250k an additional 3% "rich-tax" increases the tax rate to 45%) Not to mention other kinds of indirect taxes which push the effective tax rate over 50% (property tax, media tax...)
- You do not earn six figures like in the US in either IB/Consulting/PE at junior level
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Rents in major German cities are all >1k/month for one-room apartments; even for most bedrooms in shared flats
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Cost of living on average is higher than in the US
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Most jobs (including IB) expect a Masters degree most of the times. So you're >23 years old when you start your career
And that's just a few examples...
Am I missing something, or is everything career-wise worse in Germany compared to the US?
You get a LOT more for your taxes than in the US.
You don't earn that as an A1 in London either, despite the significantly higher COL. And no European city is as expensive as NYC
That's just untrue, unless you mean the US as a whole, and not the financial centers (NYC, SF, Chicago). As a German in SF/NYC/Chicago, I am shocked by how everything is so expensive here.
Education is free or nearly free and you never go back for a MBA, which costs Americans over half a million in direct and opportunity costs (assuming they worked in finance/consulting pre-MBA).
Not saying Germany or Europe is better than the US, but your argument is flawed because it doesn't account for the differences in environment. Once you factor those in, it's about the same
Don’t forget the chip on their shoulder for being down 0-2 against the USA.
So I spent a few years in Germany (Frankfurt, Munich and elsewhere), and wanted to chime in based on my experiences
Taxes in the EU are generally higher, not just in Germany. But you also get more in return. free healthcare, free education, and other services like child care, a more robust social security framework and more. I can understand why some might like the idea, and some might not. I like the idea and concept, but they were also the reason why I left Germany (no kids, no need for any other services).
Plenty of people I know earn six figures. You just don't receive "crazy" six figures like in many other places. 120K in Munich is totally feasible. Benefits are also very good.
Rent is high in all key German cities, I agree on that. But rent is also lower than in NYC or London. You could work at HSBC in Düsseldorf and find decent apartments at good price points.
I agree on that, but many EU cities are expensive as well. Not just Germany.
Yes, the German Abitur and Bachelor/Master create slightly older applicants. It is not possible to get your high school degree at 18 and have your bachelors at 21 or so. It is just the culture and how it is done.
I think all points are valid and show the differences between very different countries and cultures. Also, I have met many Germans who didn't like the system and left for London or other places. Or they created their own company. You don't have to do it this way. I also left because I didn't like many things and I don't regret that decision.
There are also a few benefits if you work in Germany though:
- more stable employment, not always a "hire and fire" mentality
- friendly, professional work ethic
- on average, I worked fewer hours per week in Germany compared to English speaking countries
- if something happens (medical/personal) you should be on the safer side than in other places, benefits are pretty good
I don't think Germany is for everyone, you have to be the type of person who likes a more organized, structured way of life that isn't as big or exciting as London. You will encounter more "paper work" and bureaucracy in Germany, and there are more "rules or guidelines". But that is also how the system is trying to help the average guy. If you are not into "big gov", Germany might not be for you.
If a worker is in love with NYC, chances are high they won't like Munich or the lifestyle in Hessen. All of these comments are for EU immigrants who are fluent or near native in German and other languages (and, ideally, Caucasian). If you are from outside of the EU and don't speak German or any other languages... it might be a bigger issue. Some say it is a cold place - I'd say it takes a lot more time to create relationships. After-work drinks are less common and people separate work life and personal life more. I have friends who are POC in Germany and they will tell you a different story about how life in Germany might be...
As a person from southern Europe, the biggest problem for me in Germany were... Germans and their mentality - a combination of stiff, distant and humorless atmosphere. Frankfurt is a city that has a provincial spirit and cannot be compared to London, which is characterized by diversity in every sense.
I (and many of us reading this) managed to enter a highly selective/demanding/paying industry in the early 20s, I am not interested in the low cost of living, the low crime rate, infrastructure, quality of public primary schools etc. With a desire for success, a target university, top internships in IB/PE, incoming FT and upper middle class parents who are well off to help me if any problem arises, it is realistic to say that I will not have financial problems in my life. Next step to focus on? Life is short and I should fill it with remarkable memories. The things that are important to me in this period of my life besides good health are developing a successful career and fun. The latter is very difficult to achieve in Germany.
In the eyes of a southern European, what I didn’t like was simply a culture in which enjoying life was seen as a sin. Classic German culture of renunciation of pleasure and obsessive saving. Germans, of course, have many positive traits. A lot of changes happen when you come out of the 20s and start planning family life, Germany is good at that aspect. However, in my 20s my priorities are different and the UK simply offers more.
Btw, I speak fluent German/I was exposed to that culture before, received FT offer in FFM, so I am not writing this post out of anger, I have not had problems of that nature.
Well some countries in Europe have to work hard and save so that others (Spain, Greece etc) can continue to be nothing but a burden to the EU