Reply to Why has inflation hit the US more than Europe?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't think people account for cultural biases when considering living standards.  It's not just a numbers game but also lifestyle. Europeans don't have to eat a lot of processed foods to really enjoy their food.  So they don't need 20 different cereals and can be happy with 3-4 brands if not 1-2.  So costs of dining right there is apples to oranges.  [b]They don't have to worry about health insurance, children's prek and such.  So what you save in fixed costs come into play for standard of living.  [/b]Personally if I'm poorer in a small town in France v MS, I'd still prefer to be in France because at least my overall expenses are less than needing x amount to live a certain lifestyle in MS. It's not just daily food and mortgage to consider. [/quote]

Americans tend to overestimate social benefits in European countries. Even friends in Northern European countries deal with expenses and challenges with childcare, parental leave etc.

For example there isn’t a country in the world with parental leave without a cap. That cap is often very low, such as $250 a week. This extremely generous parental leave that Americans are so envious of is often a little over $1k a month. Hardly enough to live off of in an expensive European city. Yes, it’s better than having to quit your job but European countries have horrible labor markets and it’s not easy to enter and exit jobs like it is here.

My European friends might not pay high childcare costs but they talk about energy bills which is something I have never heard discussed socially here in the US. They also deal with higher transportation costs, gasoline prices and consumer goods being more expensive than here. On top of this their salaries are much lower.

Every statistic shows that someone living in France or the UK has less disposable income than the average American. On top of that they have smaller homes and fewer cars. It makes sense they have less money. What do they produce or innovate and how much do they work?  Far less than Americans.  
[/quote]

Very good points there.

Americans also don't appreciate how differently taxes work. In Europe everyone making say $30K or more has to pay income tax, often 15% at the very least, whereas in the US close to 50% of adults pay NO federal income tax (or they actually get a "refund" for what they didn't pay). In Europe you have to pay a 21% VAT tax on every good, every service you purchase.

Europeans do tend to do well because they are extremely frugal by US standards, and sure they are also aided by social benefits and by family support, but I agree with PP above that things are less rosy than what many Americans assume.[/quote]

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