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Cost of living is significantly lower, and the social safety net means you don't need as much anyway.
My gut feel is wages are so much higher in the US because everyone is responsible for looking after themselves if life turns on them, so you're obliged to stockpile wealth in case you're suddenly jobless or have a giant medical or education bill to contend with.
Absolutely free healthcare and education are big parts of doing more with less, and quality of life.
But it's also easier to buy a house or apartment, and quality food is cheaper, and paid holidays and on and on.
We have so many privileges Americans don't have it's crazy.
I agree, but don't forget that every year, things get harder because everything is trying to find more ways to take that extra money from you. From schools, companies, and government they are all figuring out ways to come up with new mandatory requirements for stuff that normally ends up being a new fee or payment on top of what you used to need. For example when you are in school, you probably need way more certifications in things which costs more money either by a 1 time fee or sometimes yearly fees and a lot of this never existed 20-30 years ago. I feel like we pay for literally everything, and it all keeps going up as well. It's hard to get ahead when everyone wants a piece of your pie.
While that is true, academic wages are still laughably low in Europe, even compared to wages here.
You can earn more after 5 years in the industry than as a full professor in academia. We should pay academics more.
It was one of the reasons I left academia. I doubled my pay within two years.