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Disposable income is income after tax. Europe has higher tax rates that the US, so this is to be expected. It also has better services. So what you don't see in

Disposable income is income after tax. Europe has higher tax rates that the US, so this is to be expected. It also has better services. So what you don't see in this comparison is that in return for their higher taxes, they for example get free or cheap higher education and healthcare. If the German government cuts funding for those two sectors, passes on the savings to people by reducing tax rates, and requires them to pay for those services out of pocket like the US, the disposable income may reach parity, but the people would probably be worse off in real terms.

gt_ 8y ago
Right. It’s a moot comparison. They all have healthcare when they need it and have no health-related bankruptcies or anxiety over such. Having a part-time job isn’t crippling to their health and safety. Their transportation systems are cutting edge as well. If you combine only the tangible cost benefits of healthcare and transportation availability, that should account for approximately the difference in disposable income.
ChrisLomont 8y ago
>So what you don't see in this comparison is that in return for their higher taxes, they for example get free or cheap higher education and healthcare. Household disposable income is net including those social benefits, so the complaint is incorrect. Here's the definition used in these datasets: https://data.oecd.org/hha/household-disposable-income.htm https://data.oecd.org/hha/household-disposable-income.htm