why in the United States most prices are much lower than Europa?

Answer 1

There are three main reasons, Taxes, more taxes and regulations. They have employment taxes, value added taxes and special fuel taxes. All of these taxes attach themselves to the cost of every item. Then you have an economic disaster of regulations, including restrictions of layoffs, hiring and firing employees and manditory benefits including vacation days.

Answer 2

1) Economic productivity is much higher in the US. Meaning, because the US has a freer, more open, more dynamic economy, the result is that the US economy produces and distributes more goods and services per person that any European economy. This maximizes available supply, which tends to minimize prices.

2) Taxes are higher in Europe -- this not only increase the price tag directly, but also further lowers productivity by tying up resources in less efficient government bureaucracy.

3) Various regulatory reasons -- Europe tends to place a higher regulatory burden in general on businesses than the US does. Regulation is never free -- there is always a price to be paid for that.

Answer 3

If you measure by exchange rates, that is spending dollars in Europe, it seems expensive. If you measure instead how many hours a median worker must work to buy something then the result is less clear. A car is 956 hrs in UK, 1600 hr in France, and 1469 in US. A refrigerator is 46 hr in the UK, 36 in France, 17 in Germany and 26 in US. The US is running a trade deficit which implies the $ is too strong, but when we travel outside the US, the cost of the US standard of living is much higher everywhere except South America, which implies the dollar is too weak. Cross country comparisons are very complicated and don;t lend themselves to easy generalizations.

Answer 4

Generally, there are two factors. As the US is a very large and open marketplace, distribution systems tend to be efficient lowering costs. Second, tax rates are usually lower in the US than in Europe. Europe often has value added taxes that attach at each stage of the value chain, increasing cost.

Answer 5

taxes, taxes, taxes, sales tax (20% in France) and cost of labour. what do you think we in Europe finance our health system with ? employers contributions. so in the end the production costs are much higher and of course the sale's prices are higher as well. but in Europe, people enjoy almosf free health care. so what do you prefer ? lower prices and 35 million people medically uninsured or higher prices and assurance that you will be taken care of no matter what ?

Answer 6

Most European coutries have VAT taxes (Value Added Taxes) on merchandise and all items

Answer 7

300 years of slavery will get you a jump start on the world economy. U.S Business had free workers while european businesses had to pay salaries, thereby providing a competitive advantage for U.S business.

Answer 8

YOU MEAN "EUROPE" RIGHT?
US GETS ALL OF ITS LABOR FOR MOST PRODUCTS FROM THIRD AND/OR SECOND WORL COUNTRIES. THEY SAVE ON LABOR SO THEY CAN SELL PRODUCTS CHEAPER.