4 ms·

The relative ranking of the US has changed drastically within the past decade. I wonder why. It seems like many factors that we blame for rising costs - inflati

by glial 2y ago

The relative ranking of the US has changed drastically within the past decade. I wonder why. It seems like many factors that we blame for rising costs - inflation, supply-chain issues - would affect other countries as well.

eru 2y ago
Why would American inflation affect countries that don't use the USD?
- glial 2y ago
  The US is not the only country who has experienced high inflation since COVID.
  - tempsy 2y ago
    From my experience it's become relatively more expensive than other countries even if every country has experienced inflation to a small or large extent. The joke used to be how expensive Switzerland was...now I am looking at prices in Zurich for food, drinks, hotels and it's no different than what you'd pay in a big city in the US, maybe less.
    - seanmcdirmid 2y ago
      In 2007 before I left Lausanne, a Big Mac meal, was 10.5 CHF, that was maybe $8, this was before CHF hit parity with USD. Now it is 16 CHF, and CHF is now 10% more dear than USD, so I would say it has risen quite a bit? Even if not as much as a Big Mac meal did in the states (from I think $5 to $13). A better indicator would be Kebob prices, but I just don’t remember those.
      - tempsy 2y ago
        my point wasn't that a Big Mac meal in Switzerland hasn't risen since 2007 or wahtever. My point was at that time an American in Switzerland would have thought it was relatively much more expensive than a Big Mac meal here. Now it's similar.
        seanmcdirmid 2y ago
        16CHF is like $17.60 now. That is still more expensive than the states, although I guess $13 in Seattle + tax works out to $14.30. Whatever, for what I made in Switzerland, it didn't seem like a big deal, and you can live pretty well in Swiss with very deterministic costs, whereas in the states, tax and tips sneak up on you.
    - tschwimmer 2y ago
      I don’t agree. I live in the Bay Area and eating out is noticeably more expensive in Zurich than here. I find that you’re not going to get away for less than 60-70 francs for dinner for two pretty much anywhere in Zurich. Sure, there are many places you can pay that much in the bay, but you can also eat for much cheaper. Even outside the cities it’s insane. We went to a regular looking Indian restaurant 40km outside of Basel and it was 35 francs a plate. We thought the portions were going to be huge but no, maybe 200 grams of curry and a small cup of rice. Eye popping. Groceries are about the same with the exception of beef which literally seems like it’s 2-3x us prices. I think rent in Switzerland is way cheaper both in absolute terms and the value you get for your money. The housing stock is much better quality than the Bay Area. Having good public transit also makes it easier to live in a wider variety of places too.
      - tempsy 2y ago
        in what world is 60-70 francs for dinner eg under $80 or $40pp eye-popping for dinner especially when you add tax and tip to any menu price in the US? and you can't compare in-n-out to a sit down place. an average casual ramen place is like $22 a bowl now here. add an egg (yes, they don't include it anymore) and it's $25. then add one drink or something and you're at $30. Then tax is $33 and tip is another $6-7. That's $40 for a ramen and a drink.
        tschwimmer 2y ago
        This is a reasonable middle eastern restaurant in Palo Alto: https://orenshummus.com/lunch-dinner-menu/ https://orenshummus.com/lunch-dinner-menu/ If you get 2 drinks, an appetizer and 2 sandwiches yes, it's about $40 pp. But if you just get two sandwiches it's much closer to 20-25PP. Similar story here: https://coconutspaloalto.com/menu.html https://coconutspaloalto.com/menu.html These are two restaurants in some of the most expensive real estate and highest income area in California if not the whole US. Meanwhile the Indian place was as I said, 40km outside Basel (the town was amusingly called Frick). (by the way I checked Ramen Nagi, also in Palo Alto and has lines out the door every day. Regular bowl is 15.25, an egg is 2.75. So I think your baseline is a bit high.)
- Havoc 2y ago
  Given that it’s the world reserve currency I don’t think there is anyone that doesn’t use USD at least indirectly. Eg usd denominated oil purchases
  - eru 2y ago
    If you just purchase some USD on the open market when you need them, and then immediately spend them, you don't really care about what happens to the long running price level of the USD.
    - Havoc 2y ago
      If you artificially narrow the circumstances like that sure. In practice that’s often not the case. Long term contracts, futures, FDI commitments, etc is all USD bound over time. Hell even the shtty VPS I bought from Eastern Europe is a recurring fixed USD per year so they’re carrying the US inflation effect as margin squeeze (and I fully expect them to renege on that at some point)

by glial 2y ago

eru 2y ago

Why would American inflation affect countries that don't use the USD?

glial 2y ago
The US is not the only country who has experienced high inflation since COVID.
- tempsy 2y ago
  From my experience it's become relatively more expensive than other countries even if every country has experienced inflation to a small or large extent. The joke used to be how expensive Switzerland was...now I am looking at prices in Zurich for food, drinks, hotels and it's no different than what you'd pay in a big city in the US, maybe less.
  - seanmcdirmid 2y ago
    In 2007 before I left Lausanne, a Big Mac meal, was 10.5 CHF, that was maybe $8, this was before CHF hit parity with USD. Now it is 16 CHF, and CHF is now 10% more dear than USD, so I would say it has risen quite a bit? Even if not as much as a Big Mac meal did in the states (from I think $5 to $13). A better indicator would be Kebob prices, but I just don’t remember those.
    - tempsy 2y ago
      my point wasn't that a Big Mac meal in Switzerland hasn't risen since 2007 or wahtever. My point was at that time an American in Switzerland would have thought it was relatively much more expensive than a Big Mac meal here. Now it's similar.
      - seanmcdirmid 2y ago
        16CHF is like $17.60 now. That is still more expensive than the states, although I guess $13 in Seattle + tax works out to $14.30. Whatever, for what I made in Switzerland, it didn't seem like a big deal, and you can live pretty well in Swiss with very deterministic costs, whereas in the states, tax and tips sneak up on you.
  - tschwimmer 2y ago
    I don’t agree. I live in the Bay Area and eating out is noticeably more expensive in Zurich than here. I find that you’re not going to get away for less than 60-70 francs for dinner for two pretty much anywhere in Zurich. Sure, there are many places you can pay that much in the bay, but you can also eat for much cheaper. Even outside the cities it’s insane. We went to a regular looking Indian restaurant 40km outside of Basel and it was 35 francs a plate. We thought the portions were going to be huge but no, maybe 200 grams of curry and a small cup of rice. Eye popping. Groceries are about the same with the exception of beef which literally seems like it’s 2-3x us prices. I think rent in Switzerland is way cheaper both in absolute terms and the value you get for your money. The housing stock is much better quality than the Bay Area. Having good public transit also makes it easier to live in a wider variety of places too.
    - tempsy 2y ago
      in what world is 60-70 francs for dinner eg under $80 or $40pp eye-popping for dinner especially when you add tax and tip to any menu price in the US? and you can't compare in-n-out to a sit down place. an average casual ramen place is like $22 a bowl now here. add an egg (yes, they don't include it anymore) and it's $25. then add one drink or something and you're at $30. Then tax is $33 and tip is another $6-7. That's $40 for a ramen and a drink.
      - tschwimmer 2y ago
        This is a reasonable middle eastern restaurant in Palo Alto: https://orenshummus.com/lunch-dinner-menu/ https://orenshummus.com/lunch-dinner-menu/ If you get 2 drinks, an appetizer and 2 sandwiches yes, it's about $40 pp. But if you just get two sandwiches it's much closer to 20-25PP. Similar story here: https://coconutspaloalto.com/menu.html https://coconutspaloalto.com/menu.html These are two restaurants in some of the most expensive real estate and highest income area in California if not the whole US. Meanwhile the Indian place was as I said, 40km outside Basel (the town was amusingly called Frick). (by the way I checked Ramen Nagi, also in Palo Alto and has lines out the door every day. Regular bowl is 15.25, an egg is 2.75. So I think your baseline is a bit high.)
Havoc 2y ago
Given that it’s the world reserve currency I don’t think there is anyone that doesn’t use USD at least indirectly. Eg usd denominated oil purchases
- eru 2y ago
  If you just purchase some USD on the open market when you need them, and then immediately spend them, you don't really care about what happens to the long running price level of the USD.
  - Havoc 2y ago
    If you artificially narrow the circumstances like that sure. In practice that’s often not the case. Long term contracts, futures, FDI commitments, etc is all USD bound over time. Hell even the shtty VPS I bought from Eastern Europe is a recurring fixed USD per year so they’re carrying the US inflation effect as margin squeeze (and I fully expect them to renege on that at some point)