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."
This is a fact that is rapidly leading to our demise as the nanny state grows and grows and grows!
Where's the candidate that says HE will take a meat axe to the federal government and it's evil bureaucracy?
Makes one wonder if their rate of savings is higher.
It would be interesting to see a per capita comparison between the two countries, of home ownership, size of those residences, number of vacation homes, cars, trucks, collector cars and hot rods, TV’s, DVD players, computers, high speed internet access connections, jet skis, snow mobiles, trucks, mp3 players, etc.
Yes, that seems about right.
People forget that 60 million Britons are living on a landmass 35 times smaller than the US. That’s roughly seven times less space per person, and SQRT(seven) smaller distance from one person to another.
Which explains how Britons can pay almost exactly SQRT(7) more for their petrol, and seven times more for the same living space. But, to quote Grahame Greene in The Power and the Glory, “it makes no difference to the teeth”.
Yeah if you like a police state.
A large percentage of American 'poor' are not only not working hard enough, they're not working at all.
They can just lay back while illegal invaders do the jobs they're too lazy to do.
I believe the entire tax structure is wrong.
The poor should pay taxes at a higher rate than the affluent to keep them on their toes and hungry for higher wages where they'll get a lower tax bracket.
What? And pay Gordon Brown's 65% Hat Tax? :0)
Ha! They can’t fool me, I’ve seen those stinkin’ kitchens thay have on International House Hunters! Phooey!
Heil Franco!
Apparently free healthcare was weighted very heavily in this study.
Ah social darwinism at its best. You're definitely on the right website.
Hear, hear. I raise a pint of bass Ale your way - cheers! May God's love always shine over Great Britain, our loyal ally and trusted friend.
Thanks for the data. I'm not an expert consumer when it comes to cosmetic dentisty - or cosmetic anything come to that. I did think we British might at least catch a break when it came to the cost-of-teeth-index, but no!
Many of them already have second or third or fourth homes in various parts of Europe. But of course they maintain their American property and, most important, their U.S. citizenship!
Tell that to the Brit's waiting to see the dentist. There is no such thing as free health care. Their tax system does not have a concept of deductions and the rates are 11%, 15%, 21%, and 40% (not 100% sure on the top rate but it's close).
Let me also add that most of the "middle to upper" class pay for private insurance to supplement the "free" health care so they get better services.
The UK is a lovely place to live and I rate it a close 2nd behind the US. But then again I'm an American.
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