[CraigRo]

Very rigid labor markets combined with high marginal tax rates and generous subsidies for the young. If you are ambitious, you channel your energies into non commerical things, emigrate, or quickly realize that making 2x what your friends make doesn't actually improve your quality of life

[foldr]

The US having significantly higher productivity than Europe as a whole is a relatively recent phenomenon (since around 2005), and there are a number of individual European countries (e.g. France and Germany) that have similar productivity to the US. So I don't think it can be that simple. If having governments that are left of center (by US standards) killed productivity, then we'd see a different historical and present day picture.

[RGamma]

What very generous subsidies are you talking about? Cheaper tuition?

[gatinsama]

I would close the comments section after this. Perfect summary.