Why is everything in america so cheap (food,fuel,houses etc)...... compared to the uk??

Question

For example...
A brand new vw golf gti cost £11'000 in america.
In the uk its £20'000
Are wages in amreica half that of the uk?? and are they taxed as much as here in the uk?

Answer 1

I think it's more of the differences in the monetary standards more than anything.

Answer 2

I have asked the same question not that long ago. I wonder if you would be able to look it up on this site. People have given me various answers and many of them seem to be very valid. A lot of people say it is the high tax in the UK. Then some say in the UK, you have the NHS whereas in the States, some people don't have medical insurance provided by their employers. This keeps labour cost low. One says the States enjoy close proximity to Mexico and Costa Rica, where things can be manufactured more cheaply. Then, of course, there's the factor of economy of scale. Lastly, my personal opinion is that the UK has a rip-off culture imposed on the society by the rich to make sure that everyone below them is ripped off and has no money left!

Answer 3

Firstly the pound is stronger than the dollar. Secondly, there are several reasons for different prices:

- houses; the population density in the UK is much higher than the US (if you put the population of China and India into the US, the population density still wouldn't be as high as in England) - therefore, land and property is at a premium. Secondly, the British want a particular type of property; most people want a garden, and a semi-detached or whatever, not a small, rented appartment, which is more the norm in cities in mainland Europe.

- cars are more expensive because they have to be modified to be driven on the other side of the road

- and yes, salaries are lower in the UK. The US also doesn't have the same "welfare state" approach to society.

- and "leef" is right; there is a cultural perception that incredibly low prices indicate poor quality. This is one of the reasons why a meal at a decent restaurant in the UK is so much more expensive than elsewhere

- the privatisation of the British transport system has created the most expensive rail network in the world. This is because regional rail providers have a monopoly in their area, so they can charge as much as they like. Neglect of the rail system, and a bizarre arrangement of who is responsible for what (most trains are owned by banks but maintained by the rail companies or something ridiculous like that) means that we are now paying the price. And ironically, the British government is paying more to maintain the transport system than before it was privatised! (hence higher taxes!)

- petrol taxes are high in order to discourage people from using the car so much; this sort of "ethical" taxation wouldn't happen to the same extent in the US.

Answer 4

I found yuor question interesting because i'm off to the USA in October and i really don't know anything about prices there. But Alginon has got a point. In briain we have the NHS, they don't have that in America so health and treatment are very costly.

You mention the cost of fuel. My friends in the USA all tell me prices have increased so much over the past few months, they are getting really worried about, not only petrol for their car but heating costs for the winter as well. Then a friend of mine tells me that he didn't find much difference pricewise between America and Europe while my son and his g/f insist that prices a lot lower.

I see your point about a Golf GTI. it is indeed a huge difference! Having said that i live in Ireland now and i find prices here are higher than what they are in Scotland (My bonnie country) so maybe it's a case of wages being different as well as VAT and others. I don't think they have VAt in America? It does bump prices up at our end!

Answer 5

First off America buying power in volume Is so great that supply and demand items are keep at a low price. America, is very close to being self sustaining, also It has a huge manufacturing.base Don't get me wrong but Americans oil producers Cheat the pants off every American, And they say that the Arabs oil companies are at fault while in truth American own those oil companies over there but they are only charged such a small amount per barrel But the number of barrels are great. While Britain has a very high volume of imports. And they do tax their people at higher rate. But the real winners here in America are the Japanese.

Answer 6

It the fact that the goverment here uin the uk need to tax us more to get the nation wealthy and keep it that way, also in the uk because things are at one price unless we get a price war they stay expensive cause if no one else is selling it cheaper why should these companys give away all of there profits?? as for fuel our goverment have 80% tax on it, in the us they have more land and this means that the land cost is less meaning that the house price is less, but the more competition that you get the cheaper the prices will be. and also helps if your goverment isnt gready, you also have to remember that in the us they either have an insurance policy or have to pay for medical treatment!

Answer 7

Hi you think that America is cheap!,try looking at Germany.
i Moved here 8 years ago and no regrets.A nice hose with 2 balkonys and a terrase and gardens on the front and back will set you back about 150,000 euros about 90k.cars are cheap,we have a bmw x 5 jeep,46000, 27,500 pounds,beer is cheep costs about 4 pounds for a crate of 20 half liter bottles,fags cost half the price as in the uk.IT is a beautiful country ,very clean and almost all the people are very polite,great countryside aswell so our dogs can go for a good run every day.check it out you will be made welcome to stay with us if you like.
Best regards From Dortmund Gemany

Answer 8

our taxes in the US are significantly lower than that of the UK. We also have more competition in all areas of business, which drives down prices.

We also have trade deals with China and India which can move more product in the US than the UK. More over this is not just a UK thing, but most of Western Europe is like this.

Answer 9

You will pay your funds and also you takes your possibilities. i have had some sturdy deals from China, yet you in basic terms ought to settle for that there's a danger. if you're prepared to take the gamble, you would possibly want to get some sturdy deals. on the different hand, you would possibly want to finally end up with some low cost flimsy garbage which will fall to products interior some weeks. And in basic terms because you purchase from a uk-depending broking, would not recommend the object did not come from China contained in the first position. i have discovered that quite some "uk-depending broking"s are in reality, chinese pupils who're contained in the united kingdom to study yet uploading the products direct from their relations in China to resend on. (it really is a sturdy way for them to earn an income even as they are over the following reading in uk).

Answer 10

UK is taxed even higher than US. Taxes permiate every step (from conception onward) of a product and effect its cost more than we realize

Answer 11

Fuel and Houses cost so much less in America due to the size of land; cars are bigger, so fuel must be cheaper in order to be affordable. Whereas in England, due to the relatively small size of the country - the pollution is getting unbearable, so to deter people from driving, the government put more tax on petrol, you see? As for food.. I can't help you on this point, I'm afraid.