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Cost of living differences are real but almost always overstated. It isn't as though a family in China can live the same lifestyle as a middle class American on
by bradleyjg 11y ago
Cost of living differences are real but almost always overstated. It isn't as though a family in China can live the same lifestyle as a middle class American on $5k/year because everything there is so much cheaper. The average Chinese worker is very poor by US standards, even after taking into account cost of living differences. In fact, if you swapped a family with a cash income of $5k/year from China to the US, in many way they'd be better off as they'd have access to more and better socially provisioned goods and services.
When you make this sort of argument you are implicitly saying "Chinese people don't mind being poor as much as Americans do" even if that's not what you meant to say.
- notahacker 11y agoI agree cost of living differences are complicated and even low paid Americans expecting to drive a car to work, for example, plays a big role in pushing salary expectations up at the bottom end. But I don't think there are many parts of the US where you can comfortably rent a house and feed a family on $5k per annum. And I don't think most assembly line workers in export processing zones in China earn anywhere near that.