Does tech and finance pay pull engineering talent away from US industry?
Core argument: Engineering graduates in France, Japan, China, and Germany take jobs at industrial firms such as Airbus for a fraction of US engineering pay, while US graduates target Google, Microsoft, Meta, Goldman Sachs, or Morgan Stanley.
Shifts in staff compensation stacked the decks against Boeing and other big US industrial companies—at least relative to other industrial powers. In France, for example, graduates of engineering schools will gladly take jobs at Airbus and be paid a fraction of what an engineer makes in the US. The same is true in Japan, China, and Germany. In the US, however, a new engineering graduate today likely has his or her sights on a job at Google, Microsoft, or Meta, or alternatively at Goldman Sachs or Morgan Stanley. Such jobs offer better pay and more social prestige, along with the promise of stock options and potential riches. Now the SpaceX IPO has turned this dial all the way up to 11. In short, for the past 15 years or so, the US tech industry has sucked most of the oxygen out of the room. This is true for capital allocation and stock market performance, and it follows that the same has also been true for human resources and talent acquisition. This seems like a genuine hurdle to today’s widespread hopes of re-industrializing the US.

