Likely a combination of business-friendly policies (low tax, no employer payroll tax, etc.) and proximity to ports. Houston is the 6th [1] largest port in the USA.
Apple also managed to build a Houston factory quickly there, it was announced in Feb 2025 and was starting production by August which is pretty impressive.
I moved from TX to west coast a few years back. Property taxes down, all other taxes and expenses up; total cost of living much higher now. It's also business friendly enough to make deals on taxes as needed, I can't imagine that will be a problem. I get the hate on TX but tbh outside of the heat, it can be a pretty great place to live across many dimensions.
I think there's more to your sibling's taxes than property taxes. The data tell the opposite story - WI property taxes are higher than TX ones, at least if we look at the medians:
As someone living in Fort Worth and making good money as a Staff SWE, I got a tax refund this year. It was due to paying interest on my house, but still.
I'd recommend asking your sibling see if they qualify for the homestead exemption, it's significant. You or they can check if they're using it and see their exact property taxes here:
Texas property tax rates are some of the highest in the country. Should be higher than Wisconsin.
The difference here is really more of an indicator of property values in the respective areas. In major metros in Texas, you're looking at ~2%+ tax rates, which is infact higher than Wisconsin, even in the metros there.
> As someone living in Fort Worth and making good money as a Staff SWE, I got a tax refund this year. It was due to paying interest on my house, but still.
If you paid more in property taxes, that would indicate you can take a larger federal tax deduction... so, if anything, a tax refund implies you paid a lot in local property tax. Either that, or a boatload in interest (or, both). Neither is indicative of local property tax being low.
Isn't this something where there is clear and easy to obtain aggregate data. What is the average tax burden for someone in Wi vs Tx instead of comparing a single data point from each? I have a feeling it's going to contradict you
Indeed and surprised you are the first to mention it. The abatements these tech companies receive is quite substantial and will easily pay for flood damage.
> The most important question is whether they make or lose money on each customer, independent of their fixed R&D costs.
The ZIRP era called and wants its business strategy back. Half the problem is as frontier models are released free as in free beer models with "good enough" performance pop up. Half the arguments about LLMs are "you're not holding it right", which borders on indicating that it's unable to distinguish between two sufficiently close LLMs.
> Higher salaries aren't always better, especially when you're almost willfully ignoring more important things like purchasing power and quality of life.
Senior SWE salaries I'm finding in a quick google search in Spain are 80k eur. According to levels.fyi [1] Google (and presumably the other clouds) are paying 170k eur. The comparison isn't even "is 4x the salary better in the US?" it's "is 2x the salary better in the same place?" which is obviously yes.
But you still won't get with 170k in the Bay Area, what you get in Paris, Madrid, Nantes or Barcelona with 80k.
In France, if you get 80k net, you do actually get ~160k, half of which is collected/distributed before by your employer to various mutualised funds (health, retirement, unemployment, state taxes, employee benefits, etc.).
And the mechanism is somewhat similar in other EU countries.
80k net is 6.6k. If you're getting 80k (which is the very upper end of the range) it's likely you are in Paris, where you're gonna give at least 2k of that on rent for a shitty damp place, and double that for something decent.
Trust me I would love to quit consulting and be able to have a chill permanent job that can afford me a good flat and lifestyle. I'm still searching. Spain situation is very similar last time I ran the numbers.
Definitely no fucking way I'm helping anyone build a cloud provider (a cash cow considering the margins in there) for such pay. If I want to sell my soul to the devil, the one across the pond is gonna give me twice as many bucks for it.
2k for a rent in Paris gets you nice places if you have the time to spend to look for it. Cooking your own food at home definitely makes a huge difference every month.
As a SRE, I got 65k in Nantes before I quit, and I've never had to think about any single expense at all, not once (having kids, house, dog, car, garden). That would still have been quite confortable in Paris (swapping the house for a smaller flat, and without the car/dog/garden though).
As an American these numbers are super depressing, haha. Big city US vs Europe cost of living & wages are almost like an order of magnitude different at this point.
Big house & garden 30min from Manhattan center in practice does not even exist due to the sprawl and poor transit here.
As crazy as this sounds, 65k is the wage paid here now to a doorman/concierge at the type of apartment building an NYC SRE/SWE lives in.
If you want big house & garden that looks like the listings at your link, they are maybe 45-60min commute and 2x the price.
Dining out in NYC ends up like 2X+ as expensive as London/Paris or 4X+ Madrid due to labor/real estate costs. Maybe worse, I just looked up Michelin star 5 course menus in Paris and these are like regular Thursday night 2 course dinner prices in NYC.
So in many ways we collect a much higher gross wage here to then spend it all for a lower quality of life.
> But you still won't get with 170k in the Bay Area, what you get in Paris, Madrid, Nantes or Barcelona with 80k.
Note the 170k eur is in Spain -- not the bay area. I compared salaries of Google in Spain to the average salary of a senior SWE in Spain. The point isn't that the big tech pay more in the bay area compared to Spain. The point is the big tech companies pay more in Spain compared to other Spanish companies.
And 170k eur in Spain is much more than 80k eur in Spain.
Again, by focusing solely on the salary you're missing the bigger picture. I know y'all are conditioned to just focusing on the salary, but there is so much more to life.
While this sounds like great philosophical advice, in practice big salaries do attract employees regardless. If you want to solve the "brain drain to American companies" problem, ignoring the fact that they pay better isn't likely to help.
I don't think I am. Spanish employees of Google benefit just as much from Spanish employment law as Jose's Web Dev Shop. It's the purest comparison considering it's within the exact same country.
> Ontario alone has a larger GDP than 45 of the 50 US states, and a bigger GDP than New Hampshire, Hawaii, West Virginia, Delaware, Maine, Rhode Island, Montana, North Dakota, South Dakota, Alaska, Wyoming and Vermont put together.
This is not correct as of 2024. In 2024, Ontario had a GDP of CAD 1.17B. [1] In USD, this is (at .73 exchange rate, which is favorable for these calculations) this comes to US 854B.
In 2024, the following US states had greater GDPs [2]: California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, and tied with Washington. GDP growth in 2025 was worse for Ontario than these states, and it would be expected Ontarios' position to continue to decline.
The figures I provided are for 2024. You would need to compare USD/CAD ratios for 2024 versus 2025. Annual GDP figures for 2026 are not yet available as 2026 has not yet come to pass, so usage of 2026 data is not accurate in this context. To compare, I would consider USD/CAD on December 31, 2024 which was 1.386 [.72] and USD/CAD on December 31, 2025 which was 1.4359 [.69] which are both less favorable than the .73 given.
As stated above, the usage of more accurate figures would render Ontario with a lower GDP than more states.
> Also - There aren't many more things that are more toxic in Canada politics than Trump and Annexation. He single handedly handed the Federal election to the Liberals - it was the Conservatives who were going to win until he but his thumb on the scale.
Watching these discussions from the outside are statistics like four in ten (43%) Canadians age 18-34 would vote to be American if citizenship and conversion of assets to USD guaranteed [1]. I don't think the political similarities or differences between the American right and the Canadian right are what can result in one or more Canadian provinces joining the US; I think it's economic discontent.
You are thinking about this in terms of today. To put it in perspective, the same question polled 17% in the 55+ age group. Canada has serious generational problems, and as the boomers die the number of Canadians who vote that way naturally declines.
> I recall years of hints that the affordable housing crunch would eventually be helped by developers - even tho they're only building tons of not-affordable housing.
If I may ask, what cities? For example, Austin has seen a 6.6% asking price decrease for 0- to 2-bedroom units [1]. The big problem is there is an absolutely massive hole, and very few places are building "enough" to make a dent.
> The "industrialisation" concept is an analogy to emphasize how the costs of production are plummeting. Don't get hung up pointing out how one aspect of software doesn't match the analogy.
Are they, though? I am not aware of any indicators that software costs are precipitously declining. At least as far as I know, we aren't seeing complements of software developers (PMs, sales, other adjacent roles) growing rapidly indicating a corresponding supply increase. We aren't seeing companies like mcirosoft or salesforce or atlassian or any major software company reduce prices due to supply glut.
So what are the indicators (beyond blog posts) this is having a macro effect?
> But no one wants to hold them because they devalue and will continue to do so at an accelerating rate.
Devalue against what is the main question though, isn't it? The real longer term issue is that the USD is devaluing against the Euro, but even that has serious issues for Europe's export oriented economies [1].
> Devalue against what is the main question though, isn't it? The real longer term issue is that the USD is devaluing against the Euro...
I don't think that FOREX rates are the best way to think about this, but if you work in that world or otherwise have an intuition for it, then go ahead.
Most of us only handle 1 currency, and reasoning in terms of 2 isn't exactly an intuition pump.
Instead think about:
1. The dollar valued against itself a year earlier, and a year in the future. That is the interest rate or yield of the asset if held.
It should have a positive real yield, but right now it doesn't.
2. How much your personal basket of monthly expenses costs in terms of dollars.
Ignore a basket that someone on the news told you to care about, like CPI.
I mean your personal basket, all the stuff you personally buy, how much is it in dollars, now, a year in the future, a year earlier.
If you stored value in business or a precious metals in the last year and then converted back, you would probably have more dollars, or be able to buy more stuff, that's all there is to it.
> I don't think that FOREX rates are the best way to think about this, but if you work in that world or otherwise have an intuition for it, then go ahead. Most of us only handle 1 currency, and reasoning in terms of 2 isn't exactly an intuition pump.
Forex rates, balance of trade, and relative strengthening are great ways of understanding international fluctuations. They are exactly the way to understand reserve currency movements
> 2. How much your personal basket of monthly expenses costs in terms of dollars. Ignore a basket that someone on the news told you to care about, like CPI. I mean your personal basket, all the stuff you personally buy, how much is it in dollars, now, a year in the future, a year earlier.
This hits at a major part of the issue: goods that have no importable replacement good (housing and healthcare, namely) are a huge part of what lead to the huge bout of inflation. But those are domestic economics, not international economics.
>The dollar valued against itself a year earlier, and a year in the future. That is the interest rate or yield of the asset if held. It should go up, but right now it goes down.
It depends.
Positive real interest rates do not necessarily mean deflation, and deflation isn't necessarily a bad thing.
As an example, you could give a loan for $1 to someone for 5% interest.
In a year they pay you back, so now you have $1.05.
That dollar could get you exactly the same amount (of real goods or services that you personally want) as last year, or it could get you more, or it could get you less.
Inflation and deflation typically refer to the price of a basket of intrinsically valuable goods and services.
That is separate from the interest rate which is just what you, the creditor, and the debtor shake hands over.
If the dollar gets you the same basket as last year, then you are net better off because now you can buy the basket and you have $0.05 for lending to someone who was able to pay you back.
The missing variable here is the productivity of the rest of the economy, if the economy is growing, then you can see a decrease in dollars per basket (deflation), but that's not necessarily a bad thing.
The interest rate is sort of like a best guess for the productivity of the debtor.
The EUR/USD FX rate has been pretty stable for about 10 years. I think (sadly, didn't check notes before I wrote this), the trade balance between US and EU is well-balanced. As a result, the FX rate should also be well balanced.
> Hum... There are no reliable numbers out there, but I don't think the dollar devaluation has been keeping up with the US inflation.
There isn't anything like "dollar devaluation has been keeping up with the US inflation". You are interested in what is called the import/export price index [1] and for imports that has been relatively flat for the past ~24 months(import +.3%, export +3.8% for TTM). So in a sense, imports for a fixed good are relatively unchanged in constant-currency terms.
It's more along the lines of "if the EUR goes to 1.5, what does this do to eurozone economies?" and the answer to that isn't pretty for europe. This would greatly impair the economy of Germany and other large eurozone economies pretty substantially(see this article for why [2]).
And finally, remember: the US actually exports inflation [3]. Most economies cannot simply say no to this effect.
> If all the prices rise in the US to compensate, Europe stays exactly as competitive as before.
Yes, but my point is exactly the opposite has occurred for imports: the US is still roughly flat in terms of import inflation. Since Nov '22, import inflation has been sub-3% without exception and sub-2% since 2023 without exception. The US is still exporting inflation effectively, and US inflation is due to factors other than currency fluctuations.
That's the real issue: the USD weakened 8% against the EUR, and prices remain the same. For eurozone exporters to the US that's an absolute disaster.
[1] https://pangea-network.com/busiest-and-biggest-ports-in-the-...
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