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> What about European countries with similar median wage to the US but where most people choose small cars? I think big cars in the US is partly a cultural thin
by filoleg 6y ago
> What about European countries with similar median wage to the US but where most people choose small cars? I think big cars in the US is partly a cultural thing, and also partly because roads in the US are bigger
While I agree with you overall, I have a small thing that, I feel, you forgot about.
While the median wages in European countries are the same, are they taxed at the same rate as their US counterparts? What about cars themselves, do they cost higher (MSRP+sales tax+fees+etc.)? And what about the cost of ownership (higher gasoline taxes+annual registration fees+etc.)?
Mind you, I don't own the actual information about most of those, those questions I posed weren't rhetorical. However, I have a gut feeling that median wage Europeans are taxed higher on their income than their US counterparts, and I know for a fact that some things when it comes to car ownership in Europe (like gasoline) are indeed noticeably more expensive.
P.S. I am not trying to start a flamewar about which approach to taxation and pricing of goods is preferable, I understand that Europeans might be getting more worth out of their taxes, even if they are being taxed more overall. There are pros/cons to both, but that's not what this conversation is about, so please don't take my comment as trying to take a stand on that debate.
- midasuni 6y agoUS tax on $50k median wage is about 20%, take home about $40k U.K. tax on $43k median is about 20%, take home pay $43k, but no health care costs Average car cost in US 60c/Mile https://www.bts.gov/content/average-cost-owning-and-operating-automobile https://www.bts.gov/content/average-cost-owning-and-operatin... In the U.K. is 41p/Mile or 58c https://www.nimblefins.co.uk/average-cost-run-car-uk https://www.nimblefins.co.uk/average-cost-run-car-uk
- filoleg 6y agoFair, but you didn't address the part about the cars themselves costing more + the fact that the gasoline is still significantly more expensive per gallon (UK people just seem to drive much less miles per year than those in the US). In that second link you posted, it lists the starting price of base VW Golf as £38k (around $53k), while in the US the same model costs about $23k. Even if you tack on all the taxes and registration fees and such, you won't get even close to that $53k. After all the taxes and fees, even a midrange Tesla Model 3 (not the base model) costs less than that $53k in the US.
- leoedin 6y agoI think that statistic is a mistake, or skewed by high spec versions. The starting price of a VW golf in the UK is about £22k - no where near that £38k. Cars are more expensive, but not _that_ much more expensive. https://www.carwow.co.uk/volkswagen/golf/specifications#nav https://www.carwow.co.uk/volkswagen/golf/specifications#nav
- filoleg 6y agoThanks for pointing it out. I assumed those stats would be correct, but after being prompted to look into it by your reply, they were not. It even says in those stats "starting OTR cost of popular models", so not a beefed up maxed out version. But nope, I checked the official VW website for UK, and the prices are along the lines of what you were saying, £22k-24k. Now I don't know if I can even trust the rest of the stats on that page.
- deleted 6y ago[deleted]
- oblio 6y agoAmericans live in cities with grid systems, wide roads and lots of parking space. They also primarily live in suburbs or towns. Europeans live primarily in cities with much less urban planning, narrow roads and not so much parking space. And European are 99% poorer than the average American (even in places such as France or Germany; they have similar per hour productivity but they work fewer hours so their total productivity is lower, thus their salaries are also lower, even gross salaries), while gasoline/diesel fuel, as you noticed, is much more expensive.