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I think it’s a bit hard to make direct comparisons because the US is more varied in things like tax policy or having multiple important cities. For a while, th
by dan-robertson 4y ago
I think it’s a bit hard to make direct comparisons because the US is more varied in things like tax policy or having multiple important cities.
For a while, the strong pound made it seem like people in the U.K. were well paid compared to most developed countries (not the US which tends to have higher pay than basically any other medium or large country) but I think this was mostly just the strong pound and purchasing power wasn’t much higher in the U.K.
The pound has fallen a lot in the last decade and I think various numbers like pay have been somewhat sticky and not really gone up to match the increased cost of imports.
To attempt to make a comparison, if you live in central London vs Manhattan, tax rates will be comparable (maybe more so if you double both gross salaries), rents in Manhattan will be something like 2x (probably more) based on apartment type but you’ll potentially get something bigger/nicer in NY (ie partly it is about a difference in the average unit, but if all you can get is a large apartment, you have to pay for all of it so controlling for such qualities isn’t so relevant). Rent controls mean that the supply of apartments is less than might be expected based on the number of housing units In Manhattan. Groceries (in Manhattan) are more expensive, as are things like restaurants. The comparison doesn’t feel totally crazy to me.
Other US cities may be different though, eg I don’t know how the taxes/rent would work out in SF or the Bay Area or Seattle or Chicago. There isn’t really much of an alternative to London in the U.K. in the same way that there are many ‘top’ cities in the US and tax policy is much more uniform between locations.