Why is everything cheaper in the USA?

[Richard10002]

It's not just the USA where things are cheaper.

Travelling Europe over the past 2 years, I have noticed that many things are cheaper than the UK.

e.g. in Lagos, Janet and I had a meal in a posh restaurant with 3 courses, (including excellent fillet steak), a bottle of wine and coffees, water, soft drinks etc., and it came to 60 euros, (about £40) .... which, at the time, felt like an expensive meal.

Some weeks later, I wanted a roast beef dinner, so we went off to the local pub/restaurant... they had run out of roast beef, so we had whatever we had - ordinary stuff, nothing special. 3 courses, a couple of drinks each, £40.... it did not compare.

Try as I could, I couldnt find anywhere where we spent more than 60 euros on a posh meal in Lagos, and I havent paid more than 17 euros for a fillet steak main course anywhere in europe.... it's usually about 12-14 euros.

1l of Gel kleen in the UK is £10. In an expensive chandlery on Portomaso marina, Malta, £6.50.

Honda EU20i generator in the UK online £850 or so. Malta Honda car dealer £650

Camping Gaz 907 - UK £16, Europe, £5 - £7.50

Cars seem to be the same price in Euros as they are in £ in the UK....

and so it goes on.

This has nothing to do with transport costs, and possibly little to do with taxes. If it's overheads, then they are also a rip off.

The more I see, the more I resent the UK.

having said that, for me, it's possibly a bit hypocritical, as it is UK rent which allows me to be where I am.

 

[Lakesailor]

I think most responders are missing the point. Goods are cheaper in the US because the balance of expenditure is skewed towards other things. Such as Healthcare. Just watched the item on Michael Moore in which his new film centres on the fact that we still have a right of medical attention in the UK whereas, for instance, a guy in the US who chopped off the tip of his middle two fingers was given a choice. $12,000 dollars to re-attach the ring finger tip or $60,000 to re-attach the second finger tip.
What? Apart from the cost, why a difference? Exactly the same job. Simply, the second finger is more useful.

So by the time the US citizen has paid for his essential costs, there isn't a while lot left for the goods. So they adjust their economy so.
Fine for us dipping in and buying in that market, but if you lived there you'd find the whole experience as expensive as living here. All civilised countries have similar overall tax burdens.

 

[GMac]

a Raymarine C80 retails today in NZ including 12.5% GST (sales tax like VAT) NZ$2700. If shipped to a non-NZ address you don't pay the 12.5%

At todays exchange rates -
US$1890 (NZ1 = US0.70)
UK pounds 980.00 (NZ1=UK0.36)

If you walk into most places marine based with cash ('Pictures of the Queen', as we say being loyal colonials* /forums/images/graemlins/smile.gif ) it is easy to get 10-15% off retail. So it would not be out of the question for a visiting yacht (they can get GST exemptions easily) to pay only 740 Pounds or 1420 US$ for one today.

Sorry I must have a metric keyboard, no Pound symbol.

The US market would be a LOT bigger than the UK so volume discounts would be a lot bigger. Then again the above prices would seem to kill that train of thought a bit.

I do know we have the most competitive marine market in the world. It is common to see container loads of boat gear heading offshore (UK and Euroland very common) to where the hull and decks are being built. Often the container will include many Euro built products.

Just sold a bit of Italian made chain to a visiting Italian yacht and he was very surprised to find out our prices were big pile less than in Italy for the same thing even after freighting 1/2 way around the world. Go figure.

* NB: So loyal we even bailed out of the RWC early to give you lot a crack at winning something seeing you hadn't for 4 years /forums/images/graemlins/smile.gif /forums/images/graemlins/smile.gif

Edit - Our cost of living is a pile lower than yours though as are wages I'm guessing. Swings and roundabouts as they say.

 

[SeadogUSA]

Sales tax in the states have three components, state sales tax, county sales tax, and city sales tax. This can vary depending on which state it is. Where it can get confusing is on large purchases. A boat or car in most states will require paying a state sales tax, but in others, there are no sales tax, but when you register the vehicle/vessel you wil pay property tax. Property tax will be a lot less, but a buyer cannot include that when they take a loan out for the purchase. Plus, it will be a charge every time the license is renewed until it reaches a minimal amount. In addition, in my state, the boat is registered, but the trailer is not. So when I bought my boat, the sales tax had to be paid on the trailer. If you buy an outboard, it is registered separately from the boat.

As for smaller ticket items, there are several reasons for the lower prices. We are a large consumer country and are expert at discount pricing. The dollar value right now. And we also do not have as big a tax burden as most european nations. As for the cost of health care, that is a different animal. Every nation has a problem with the cost of medical care and how to pay for it. One of our big problems is that we demand instant health care and we use it for every little thing. Add the fact that we have a large amount of illegals and welfare moochers that take advantage of the legal responsibility of our hospitals. Despite the stories, it is almost impossible to get thrown out of an emergency room, even when they know you cannot pay. Billions of dollars are lost by overwhelmed emergency rooms each year and the loss is passed onto the paying customers. Socialized medicine is not a solution that we would be able to live with, but neither is the current situation.

 

[Richard10002]

[ QUOTE ]
One of our big problems is that we demand instant health care and we use it for every little thing. Add the fact that we have a large amount of illegals and welfare moochers that take advantage of the legal responsibility of our hospitals. Despite the stories, it is almost impossible to get thrown out of an emergency room, even when they know you cannot pay. Billions of dollars are lost by overwhelmed emergency rooms each year and the loss is passed onto the paying customers.

[/ QUOTE ]

Sounds about the same as the UK system, socialised or not.