I think it's partly to do with the consumption of services. The average Chinese doesn't really eat out that often - maybe once or twice a month. The average American eats out every day of the week. The average Chinese doesn't really do things like Starbucks. The average American does Starbucks once a day.
And then there's the casual consumption of consumer durables. The average Chinese doesn't drive a car. The average American might have two cars. The average American's gasoline monthly consumption is the average Chinese's monthly salary.
The average Chinese doesn't have air conditioning. The average American probably has central air and probably can't install window units because of local ordinances forbidding them as eyesores. The average Chinese homeowner who does have an air conditioner probably thinks setting the thermostat to 84 degrees Fahrenheit in the summer is nice and cool. The average American is probably doing 70 degrees Fahrenheit. During the winter, the average Chinese probably thinks 59 degrees Fahrenheit is nice and toasty, whereas the average American thinks 75 degrees is more like it.
The average Chinese also doesn't move away from home at the age of 18, whereas the average American probably does. The average Chinese also stays home with his parents after graduation - the average American doesn't. The list goes on and on.
But the big difference - the difference that sets us and them apart is that we get 1/3 of our incomes taken out as federal and local taxes for massive entitlement programs, and the Chinese don't.
Agreed on almost all of your points. Don’t you think that the fact that the average Chinese has no need for Starbucks,doesn’t eat out that often, doesn’t have to have 75 degrees to be comfortable (they wear warm clothes instead),etc is a testament to their ability to cut costs and save money because they know they have to?
I am talking about ‘middle class’ Chinese people and not ‘peasants.’ Compared to middle class people in the US (myself included) who ‘buy on demand’ Chinese people seem to have more self control on spending. I know plenty of people here who could easily afford a widescreen TV or afford to take a vacation now and then but they don’t because they were brought up to save money.