Things are cheap in America? Check again

[PCBudgetSolutions]

 

Minimum wage where I live is $8.75, it changes, not to mention the cost of living is MUCH higher in Aus., so they need to spend way more than we do, not to mention usually insane shipping. All in all, Aus. has to spend more than us, to be equal the minimum wage should be something like 20-25 AUS, they have to spend more. And honostly this whole thread just seems to be a bit of a hate thread....

 

BTW the numbers:

Indices Difference

Consumer Prices in United States are 32.10% lower than in Australia

Consumer Prices Including Rent in United States are 34.93% lower than in Australia

Rent Prices in United States are 40.70% lower than in Australia

Restaurant Prices in United States are 32.57% lower than in Australia

Groceries Prices in United States are 26.40% lower than in Australia

Local Purchasing Power in United States is 30.82% higher than in Australia

 

 

This post doesn't factor in nearly enough variables to make this even close to accurate... This is why people go to colleges/universities and have classes that study this exact thing... Can't really be factored by a random person... 

 

They are that much lower BEFORE you factor in wages are more than TWICE what we make, then it's a different concept all together.

[Keystone Nyan Cat]

While I do disagree when it comes to computer hardware as a 670 still retails for 600$+ here [india], I do find myself agreeing over actual game prices and labor though. While I cannot exactly give you an exact quote on labor down here, some perspective for physical and genuine game copies- go to flipkart.com and search for games there. Divide the price by 60 and boom! Theres your cost in USD. Pretty cheap, right?

[PCBudgetSolutions]

What I am saying is, to say "Things are cheaper in the US then elsewhere" is a terribly bold statement.  Things to factor is that fact that our economy and wages as a whole are MUCH lower in the US then elsewhere.  Our Unemployment is stupidly high and the cost of living in say AUS is as the OP showed 40-60% higher than us, but their wages are more than TWICE what ours is.  Also factor in, we get DESTROYED on healthcare.  If your company offers it good luck paying less than 800/month, it's 1400 through the government, and we have income tax and 7 other taxes out of our paychecks.  I didn't even pay healthcare and I lost 41% from taxes...

 

EDIT: apparently the AUS min wage for 21+ is 16.88 which is over 18 USD, which mean's its not 2.5 times ours yet their average cost of living is only about 1.5 times ours.  And we get taxed just as bad or worse.  GG I am gonna move to AUS, let crime there as a whole too!

[Nort]

Only reason American houses are cheap right now is due to foreclosure. People can't pay their mortgage, house goes for foreclosure = insanely dirt cheap prices. What's sad though, is people can't afford a mortgage at that price (houses valued at under $200k).

 

Contrast that to Vancouver, where the minimum for a 3 bedroom house would be over $1-1.5m. A downtown condo (1 bedroom, kitchen, living, etc) is also around $1m minimum.

 

Jeez, over here in New Brunswick I've seen 2 story, full basement, 2 bathroom, 4 bedroom houses (older ones, mind you) with a few acres of land for 50k. Maybe that explains why people who go to work out west send money back home instead of buying a house there. :P

[Vitalius]

Jeez, over here in New Brunswick I've seen 2 story, full basement, 2 bathroom, 4 bedroom houses (older ones, mind you) for 50k. Maybe that explains why people who go to work out west send money back home instead of buying a house there. :P

The difference between the North and South (Texas VS New York for example) in salary is noticeable due to cost of living differences. 

[aikoels]

They are that much lower BEFORE you factor in wages are more than TWICE what we make, then it's a different concept all together.

Again, it changes in america though, where I am $8.75 is the minimum wage, and that isn't even close to the highest in the country. I am not trying to say that Australia's computer components aren't cheap, but I am saying that pc parts are more expensive in many other places, even if you factor in everything USA tech is still really cheap. I am just saying that in the US people have no reason to complain about pc prices, which is what it seems like the first post does...

[Forza-x73]

Now compare Lithuania, a TITAN here costs at about 1750$ USD

[adotkdotjh]

Well I don't know if the cost of living in Canada is cheaper than the rest of the world (which I highly doubt), but compared to BC Canada, everything sold in Washington State US is much cheaper (BC and Washington are right next to each other). That's why many Canadians cross the border just to do some grocery shopping and get gasoline. Lets look at examples:

 

1. Minimum wage in BC: $10.25 CAD. Washington: $9.45 CAD. 8% difference.

2. Income tax in BC: 7.7% for average income. Washington: no income tax, which makes up for the difference in minimum wage.

3. Sales tax in BC: 12%. Washington: 6.5%

4. Price of gasoline in White Rock BC (Canadian city that has the border crossing): $1.5CAD/L. In Blaine Washington (American border town): $1CAD/L

5. Groceries and other goods: don't have quantitative data, but based on personal experience, A LOT cheaper in Washington. 

6. Services, just as vehicle maintenance, costs ~10% less in Washington. 

[Yoinkerman]

I think the bigger question is why are you buying a 780 on minimum wage? If you're paying bills you don't have enough money and if you're Not it doesn't matter anyway

[PCBudgetSolutions]

Again, it changes in america though, where I am $8.75 is the minimum wage, and that isn't even close to the highest in the country. I am not trying to say that Australia's computer components aren't cheap, but I am saying that pc parts are more expensive in many other places, even if you factor in everything USA tech is still really cheap. I am just saying that in the US people have no reason to complain about pc prices, which is what it seems like the first post does...

National min wage is 7.25/hr and that's what I go off of.

[JaeDee884]

Only reason American houses are cheap right now is due to foreclosure. People can't pay their mortgage, house goes for foreclosure = insanely dirt cheap prices. What's sad though, is people can't afford a mortgage at that price (houses valued at under $200k).

 

Contrast that to Vancouver, where the minimum for a 3 bedroom house would be over $1-1.5m. A downtown condo (1 bedroom, kitchen, living, etc) is also around $1m minimum.

 

There are many more factors affecting costs. "Expensive" and "cheap" are also subjective. I look at a 3 bedroom house in the US and I'll be laughing because I could afford that in less than 4 years of saving up from a full time Engineering job, and that's including taking care of my basic needs, and buying the house for full cash. Someone living in the US would be close to committing suicide just to maintain a mortgage payment on the same house.

 

Sure puts things into perspective.

Well put it this way, I live in the middle of the outback is a rundown town. and thats the cost of a house. with no services or anything of the sort.

[ShiverMePenguins]

as someone whom was born and raised in a far different country. i can tell you that americans get fucked over more than canada and WAY MORE than Japan.

 

Yes, other countries must pay for things like import tax, high cost of living, etc. but think about this. America has some of the highest internet costs in the world, yet is now almost at the number 10 spot for internet. for every mbit up and down japan pays around a tenth of that of the u.s.

 

not to mention the phone bills tend to be cheaper. to get a TRULY unlimited plan in america it usually costs around 120$ a month. in japan it would be around 80$... and you have more consistent service because there aren't 80 different companies fucking you over with celltowers.

then factor in high cost of groceries and such.

 

 

 

when i first moved to america, i lived in new york city. i had an average apartment in an average area, with unlimited everything on my phone, a car payment, and was frugal with all my shopping. every month i would have about 3.1k dollars in money i'd have to spend. back in Tokyo i had all the same basically, but i was spending around 1700-1800 every month. but also, crime rate was lower, it was more peaceful, and i had MUCH more disposable income.

 

 

 

it varies from country to country. but america is by far one of the worst governments in the world for what they get away with.

[Jammin]

They are that much lower BEFORE you factor in wages are more than TWICE what we make, then it's a different concept all together.

 

As far as I'm aware, most indices will already account for factors like wages differences if they are comparisons like that (hard to check without a quoted source).

As a side note, anyone posting any kind of comparisons where data is involved should really be linking sources for that data along with it.

 

Either way, I'm sure you are already aware that this subject is generally a huge can of worms and one that doesn't easily lend itself to simple, easy to understand comparisons.

 

Anyway, if people are interested in doing further reading around related subjects, there is plenty of data available, though it will take time and effort to understand what it all means.

 

Somewhere like the OECD is a good place for lots of data (though you won't get much explanation in the data sets themselves) - http://www.oecd.org/statistics/

[Night]

I think you may be over thinking this.

Hes definatley not. America does get screwed over with prices. Conversion rates are so close to each other now that the main difference is on how much a consumer earns. Theres not much difference in price when you do a conversion and compare the prices to most things and the difference you can usually account for shipping.

[ixi_your_face]

What I am saying is, to say "Things are cheaper in the US then elsewhere" is a terribly bold statement.  Things to factor is that fact that our economy and wages as a whole are MUCH lower in the US then elsewhere.  Our Unemployment is stupidly high and the cost of living in say AUS is as the OP showed 40-60% higher than us, but their wages are more than TWICE what ours is.  Also factor in, we get DESTROYED on healthcare.  If your company offers it good luck paying less than 800/month, it's 1400 through the government, and we have income tax and 7 other taxes out of our paychecks.  I didn't even pay healthcare and I lost 41% from taxes...

 

EDIT: apparently the AUS min wage for 21+ is 16.88 which is over 18 USD, which mean's its not 2.5 times ours yet their average cost of living is only about 1.5 times ours.  And we get taxed just as bad or worse.  GG I am gonna move to AUS, let crime there as a whole too!

 

You guys most certainly don't get ripped off in any sense of the word.

 

Yes the aus wages are higher, but the cost of living in aus is way higher as a result. Don't expect to go to Aus or over here and see streets of cobbled gold and families wearing platinum suits. You wont find it. You can barley survive on minimum wage. Anywhere. 

 

Without factoring in the Aus tax (which is fucking insane, especially today) your argument stands up against scrutiny, until you scratch beneath the surface.

 

There's not much that can emphasize how good you guys (and canadians) have it in terms of PC components. Companies with subsidise the release of components in the american markets making them cheaper earlier. 

Now, compare that to the Aus and UK system, where they have to pay rather large import taxes, then selling and listing fees.

 

Also, doing a straight conversion doesn't yield things the way you say, not very scientifically anyway. You cannot base an assumption on a conversion rate that was, for a while. on parody. The electronics and other goods are more expensive. Fact. And that's not even counting in shipping across the desolate wasteland that is AUS.

 

Also, bias much?! :P

[Night]

You guys most certainly don't get ripped off in any sense of the word.

Yes the aus wages are higher, but the cost of living in aus is way higher as a result. Don't expect to go to Aus or over here and see streets of cobbled gold and families wearing platinum suits. You wont find it. You can barley survive on minimum wage. Anywhere.

Without factoring in the Aus tax (which is fucking insane, especially today) your argument stands up against scrutiny, until you scratch beneath the surface.

There's not much that can emphasize how good you guys (and canadians) have it in terms of PC components. Companies with subsidise the release of components in the american markets making them cheaper earlier.

Now, compare that to the Aus and UK system, where they have to pay rather large import taxes, then selling and listing fees.

Also, doing a straight conversion doesn't yield things the way you say, not very scientifically anyway. You cannot base an assumption on a conversion rate that was, for a while. on parody. The electronics and other goods are more expensive. Fact. And that's not even counting in shipping across the desolate wasteland that is AUS.

Also, bias much?! :P

Go home Ixi, You're drunk. Aus has pretty good prices, especially if you are importing from the states as a comparison. Minimum wage in Aus is also crazy. I'd be rich if I got paid Aus minimum wage.

Edit:

If it wasn't so hot in Aus I would consider moving there more seriously. But I'll keep my colder climate and get paid less for now.

[ixi_your_face]

Go home Ixi, You're drunk. Aus has pretty good prices, especially if you are importing from the states as a comparison. Minimum wage in Aus is also crazy. I'd be rich if I got paid Aus minimum wage.

Edit:

If it wasn't so hot in Aus I would consider moving there more seriously. But I'll keep my colder climate and get paid less for now.

 

You hurry up and come home! 

 

Aus would melt your face off. 

[PCBudgetSolutions]

You hurry up and come home! 

 

Aus would melt your face off. 

I actually just did a whole analysis on average AUS outside of the city vs the suburbs here. Minimum wage is about 16.88 USD vs 7.25 which is about 2.33 times our wage, but the AVERAGE cost of living is 1.51 times more than ours.  You think we don't pay taxes.  You'd be lucky to see HALF your paycheck here if you lucky.  Let's break down my dads weekly check:

Last check 3,088

Less 350 a paycheck for healthcare (we have GREAT healthcare, most companies don't offer this great of level for this price)

=2,738

Income tax (22%): 684.50

Local tax (1.5%):  41.07

SSI (6.2%) Double if self employed:169.76

Medicare (1.45%) Double if self employed:39.71

401K (3%) we have to put in unlike most countries: 82.14

Occupational tax (2%): 54.76

State Tax (5%) PA: 136.9

Country Tax (7%): 191.66

Total taken out of his paycheck: 1,403+350=1753

3088-1753=1335/3088= 43.23% of his paycheck he keeps, ASSUMING he isn't self employed.

 

Sorry Ixi, your point is invalid, you guys have VAT and free healthcare (If u choose), we don't get it unless u make like 20k or less a year.  Healthcare through our government if u make more than 20k is 857/month and 1455 for anything over 40k a year PER PERSON.  Also factor in our 10% unemployment rate, the average wage in our country is below 10/hr, I believe it was 9,82/hr last time I checked.  A 1 bedroom apartment in the ghetto will run 350-400+utilities.  I live in the suburbs (away from the city) and a decent 2 bedroom apartment is 800-900+utilities, but that's rather small.  We don't have it NEARLY as good as others think.

[ixi_your_face]

I actually just did a whole analysis on average AUS outside of the city vs the suburbs here. Minimum wage is about 16.88 USD vs 7.25 which is about 2.33 times our wage, but the AVERAGE cost of living is 1.51 times more than ours.  You think we don't pay taxes.  You'd be lucky to see HALF your paycheck here if you lucky.  Let's break down my dads weekly check:

Last check 3,088

Less 350 a paycheck for healthcare (we have GREAT healthcare, most companies don't offer this great of level for this price)

=2,738

Income tax (22%): 684.50

Local tax (1.5%):  41.07

SSI (6.2%) Double if self employed:169.76

Medicare (1.45%) Double if self employed:39.71

401K (3%) we have to put in unlike most countries: 82.14

Occupational tax (2%): 54.76

State Tax (5%) PA: 136.9

Country Tax (7%): 191.66

Total taken out of his paycheck: 1,403+350=1753

3088-1753=1335/3088= 43.23% of his paycheck he keeps, ASSUMING he isn't self employed.

 

Sorry Ixi, your point is invalid, you guys have VAT and free healthcare (If u choose), we don't get it unless u make like 20k or less a year.  Healthcare through our government if u make more than 20k is 857/month and 1455 for anything over 40k a year PER PERSON.  Also factor in our 10% unemployment rate, the average wage in our country is below 10/hr, I believe it was 9,82/hr last time I checked.  A 1 bedroom apartment in the ghetto will run 350-400+utilities.  I live in the suburbs (away from the city) and a decent 2 bedroom apartment is 800-900+utilities, but that's rather small.  We don't have it NEARLY as good as others think.

 

You have it rather better than most places in terms of PC components.

[CJPowell27]

But in Australia every living creature wants to kill you

[atom608]

I had to pay $380 for a shapphire 7870 ghz edition 4 days ago. in us money that is $304.... 

[Worth]

It costs money to be the universal police force. We just can't get a higher minimum wage.

The US shouldn't have to be the global police force.

[TheMightyNoob01]

Using minimum wage is by no means accurate. You are much better of comparing median incomes. The best I could find was here: http://www.news.com.au/national-news/how-would-your-life-compare-australia-vs-us-where-it-counts/story-e6frfkvr-1226196606062

It's kind of outdated but from it we see that the median income of an American household is much higher than that of an Australian household. Although unemployment is higher in the US.

[Lukiose]

Using minimum wage is by no means accurate. You are much better of comparing median incomes. The best I could find was here: http://www.news.com.au/national-news/how-would-your-life-compare-australia-vs-us-where-it-counts/story-e6frfkvr-1226196606062

It's kind of outdated but from it we see that the median income of an American household is much higher than that of an Australian household. Although unemployment is higher in the US.

So basically, we have a conclusion here

- if you're an average American family, great for you as you can enjoy the lower prices.

- if you are living on minimum wage then you better get your priorities straight, starting by skipping a hardcore gaming rig and stuff....

[PCBudgetSolutions]

You have it rather better than most places in terms of PC components.

My point is you need to look at more than just cost translation.  I did a 6 hour in-depth analysis on AUS.  You say we have it better than most, but do we? Sure we have it better than many countries, but most first world countries you have to look at more than just the surface,