Posted on 01/10/2008 7:01:22 AM PST by fweingart
For the first time in more than a century the standard of living in Britain is higher than in America, according to a new report.
Analysts at the respected Oxford Economics consultancy say that increasing incomes, free healthcare and longer holidays make the average Briton better-off than his or her US counterpart.
The GDP per head in the UK is expected to exceed that of the USA in 2008 They predict that gross domestic product (GDP) per head in the UK, an indicator of average incomes, will be £23,500 in 2008, compared with £23,250 in America, reflecting the strength of the pound against the dollar and the steady growth of the British economy.
Adrian Cooper, managing director of Oxford Economics, said: "The past 15 years have seen a dramatic change in the UK's economic performance and its position in the world economy.
"No longer are we the 'sick man of Europe'. Indeed, our calculations suggest that UK living standards are now a match for those of the US.
"The UK has been catching up steadily with living standards in the US since 2001, so it is a well-established trend rather than simply the result of currency fluctuations."
advertisementBack in the early 1990s Britain's GDP per capita was 34 per cent below that in America, 33 per cent less than in Germany and 26 per cent lower than in France.
Now, average incomes are not only above those in America but they are more than 8 per cent higher than in France where it is £21,700 and Germany, with a predicted £21,665.
The British financial services boom and soaring house prices have led to an uninterrupted expansion, credited with boosting the UK's strength. And in contrast America and many European countries slid into recession in the early part of this decade.
However the average British person may not feel richer than their US cousins as goods and services there are often vastly cheaper. So, despite earning less, the average American can buy more.
The report authors also warn that a significant fall in the pound against other currencies could push Britain back down the ladder.
Citigroup, the most accurate forecaster of Britain's economy last year, predicts the slowest rise in consumer spending this year since 1992.
Michael Saunders, Citigroup's UK economist, said: "After the credit-fuelled boom in domestic demand and asset prices, the UK economy now faces a hangover, with slowing credit growth, falling property prices and tightening lending standards."
that must be why everyone is moving there.
I understand from people who have visited, that there is some
kind of fee or tax on the TV over there.
FREE government constituent paid TV, and healthcare for
that matter. Just get with the pogrom, err..program.
Hmmmm, lets see, what happened in 2001 to turn the tide......GEORGE W. BUSH took office. The DBM is so transparent.
The standard of living is better in UK than the USA? Really. Have you checked a “typical” Brit’s teeth? ‘Nuff said...
Yep... around $270 per year for a colour TV...
But you can pay for it on-line...:^)
http://www.tvlicensing.co.uk/information/index.jsp
What a deal - compulsory payment to the left wing BBC!
Britain is self sufficient in oil and gas from the North Sea. This has a dramatic effect on the GDP as compared to the United States that imports over 50% of its oil.
If the measure is GDP they are equal or ahead. I have lived there and like the place. However, the average worker in the United States does have a better quality of life. The house I lived in (I wish I still had it) recently sold for over 700,000 dollars. That same house where I live in Texas would sell for about 150,000.
None of which translate to a "better standard of living" in real terms.
Great Britain is America's best friend, and mine too, stranger to stranger. Hard working people, proud and the parent of the US. I harbor no ill will and don't shy away from civil (albeit international) competition.
I think it preposterous for a reporter to pick some statistics and suggest the standard of living better one way or another. America and the UK have different cultures and different living standards. So whose standards is the author measuring by? I suppose the British standards of living.
If we offered you a 3,000 SF house on 1/2 acre of property with a gas guzzling SUV in the garage for 1/2 of what you are paying there in the UK and 15% less income, would you take it? You don't get "free" health care and might have to work a little harder. Is the trade off worth it?
A friend of mine in Houston is selling a nice 2,500 Sq.Ft. 2-story house for $125,000. The whole neighborhood looks upscale, but the housing prices in that area plummeted over the past few years when the demographics changed.
“The GDP per head in the UK is expected to exceed that of the USA in 2008 They predict that gross domestic product (GDP) per head in the UK, an indicator of average incomes, will be £23,500 in 2008, compared with £23,250 in America, reflecting the strength of the pound against the dollar and the steady growth of the British economy.”
Madness, they are surely not just taking straight comparisons of currency values for this (or maybe they are).
Re the NHS, it’s free....but...
Re longer holidays, this is true. Even worse, the only thing close to a 4-day US holiday is thanksgiving, with MANY sectors open part or full-time friday after.
We own a 2,000k sf home with a good sized yard, upscale kitchen and two baths (granite counters, gourmet appliances, blah, blah). Current market value is between $400k ande $350k.
$538,000 will buy what’s considered a luxury home in most areas of Phoenix AZ.
Since we are bragging about who has the lowest "cost" of living. My family of 4 lives in a 3,200 SF (including basement), 3-car garage on 1/3 acre, fenced back yard, built in 2001 in a nice subdivision in Indianapolis, Indiana. We bought it for under $200K three years ago.
Don't tell anyone how cheap it is to live in Indiana. We are already taking refugees from Illinois and Michigan.
Anyone who I know who has visited England said it was very expensive. My daughter went to London and the only place she could afford to eat was McDonald’s and it was higher than here at home.
Every time my husband gets a raise it goes to the increase in price for health care. Our health care went up 31% this year.
When did free health care and longer vacations become a test of the standard of living?
Absolutely correct. It is crazy expensive.
Man, they pay over 8 dollars a gallon of gas in Britain and EU.
“Everything costs more.”
My buddy just “got off the boat” from Scotland and is living in California. He loves his homeland, but as best as we can tell prices there are around 30%+ higher than here. Electronics and computer gear is even more costly over there than here. And California is not a particularly cheap place to live when compared to the heartland states.
That said, these kinds of BS articles serve a kind of propaganda purpose in the UK. They are meant to instill a sense of nationalist superiority in Britian while at the same time dividing people.
Yep and that 2-4% pay raise doesn't even come close to covering it. My company actually has an HSA now and contributes $1500 to it while I contribute the other $1500 to get to my deductible. Its worked ok so far plus we get a physical test each year and get a discount for being physically fit and healthy. Add the cost of energy and regular Joe's get further and further behind each year.
Speaking as a Brit who lives and works in Southern California I can tell you the only thing I found to be more expensive was the housing/rental market. Pretty much everything else can be had cheaper over here. Cars especially, but also petrol, food, electronics etc. Basically all the big ticket items you need to live comfortably are cheaper in the US.
For example a Jeep Rubicon starts at 19,320USD over here and in Britain they start at 22,595GBP (44,235USD). It’s not just American models that are cheaper either, the Jaguar XK convertible is 81,500USD against 66,097GBP (129,461USD).
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