America's Expenses
Many people see America as top of the world, with the best of everything. Which may be true, for the most part, but not everything is better in America—especially when it comes to cost.
In fact, there are many things American’s pay a lot more for than most other countries.
Why do prices vary in different countries?
There are many reasons things may cost more or less in other countries, such as:
- Supply and demand
- Tax rates
- Duties / tariffs
- Inflation
- Availability
- Transportation costs
Is it expensive to live in America?
Living expenses vary greatly by location, but the average monthly living expenses for a single person in the US are close to $5,000 USD.
In Europe, it can average out to about $3,800 USD per month—depending on location and lifestyle.
Jim.henderson, Wikimedia Commons
College Education
In the USA, a post-secondary education can cost you around $20,000 per year, whereas the same quality of education in Europe can cost you as little as $5,000.
Many countries have started offering free post-secondary educations to their citizens.
Global Partnership for Education, Flickr
Healthcare
Not only is healthcare necessary in America, it is also expensive. Even minor medical emergencies, such as appendix removal or dental surgery, can cost thousands of dollars.
However, most countries in Europe, and other places like Canada, offer free healthcare for their citizens.
Prescription Medication
As with all healthcare expenses in the US, prescription medication is no different. Americans pay a hefty amount for prescriptions, whereas in some other countries, citizens can buy generic drugs at a much lower cost without worrying about insurance or waiting for refills.
ManzoorRph, CC BY-SA 4.0, Wikimedia Commons
Childbirth
While we’re on the healthcare issue, childbirth is no different. In fact, depending on where you are in America, child birth can cost anywhere from $7,000 to $15,000.
In countries where healthcare is free, it can cost nothing. In other countries, the cost may be as low as $3,000.
Cosmetics
Makeup and cosmetics are another category of products that are more expensive in the US. This is largely due to taxes imposed by the U.S. government and marketing costs associated with each brand.
Gym Memberships
It is not uncommon to see gym memberships cost anywhere from $60-$100/month in America. This, of course, depends on where you live.
But in other countries, gym memberships are a fraction of that cost. Some even offer them free as part of wellness programs.
Cars
In the U.S., cars can be significantly more expensive due to import taxes and dealership fees. These factors combined can make the final price tag of a vehicle in America much higher than in other countries.
Helgi Halldórsson, CC BY-SA 2.0, Wikimedia Commons
Trains
Train travel is very common in Europe, which may be why it costs significantly less than here in America. It also may be because of the less developed train infrastructure in America compared to other countries.
veerasak Piyawatanakul, Pexels
Fresh Produce
Due to higher production costs, including labor, land and transportation, fresh produce is significantly more expensive in the US than in most other countries.
As well, the year-round demand for variety in America adds to the overall cost.
Wine
Like produce, wine is also much more expensive in the US. This is mainly due to taxes and other tariffs. Most experts agree that these taxes make it difficult for wineries from other countries to compete with American producers, resulting in higher consumer prices.
Cheese
Anything related to dairy in the U.S. is expensive. Cheese can cost up to twice as much in the U.S. compared with other countries like France or Switzerland, where cheese is a significant export.
Taxes
In America, the listed price you see does not include tax. This is because sales taxes vary by state and sometimes cities.
In many other countries, the tax is included in the list price already. This difference can make goods and services seem more expensive in the U.S. compared to countries with all-inclusive pricing.
Housing
Unlike in other countries that have extensive housing programs, the burden of homeownership in America is on the homebuyer alone, leading to higher upfront costs.
Cell Phone Plans
Americans often pay more for mobile phone plans, with limited data and fewer perks. For example, India has the cheapest unlimited text plan: $2 per month. The U.S. has noticeably higher rates of up to $20 per month.
Childcare
Americans spend a substantial amount of money on childcare. But in Denmark, parents pay no more than 25% of the cost of having their 2-year-old attend child care. That child is also guaranteed a spot until age 10, when after-school care takes over.
Public Transportation
Americans spend about 17% of their household budgets on transportation, according to the U.S. Bureau of Labor Statistics.
This cost is much lower in other countries. Spain and Malta have actually recently started offering free travel options to their citizens.
Internet
According to a study conducted by Fastmetrics, America ranks 114th when it comes to internet pricing per customer. Americans pay an average of $66.20 each month.
Europe, South America, and Asia pay less than $50 each month.
The Penitentiary System
America spends an average of $74 billion each year on the penitentiary system—more than the entire GDP of 133 countries.
In most states, a single prisoner costs about $31,000 per year. In New York it costs $60,000/year to keep someone locked up.
Things That Cost Less
While we may pay more for education, childcare, healthcare, etc., there are still many things that cost less in the US than they do abroad.
Here’s five things in specific that cost less in America.
Shoes
A decent pair of brand-name athletic shoes will cost Americans about $70 or so. In many other countries people will pay hundreds of dollars for the same pair of shoes.
Electronics
Many electronics including game systems, mobile phones, fire sticks, laptops, televisions, etc. are much cheaper in the US than in most other countries.
This is mostly due to a lower import duty.
Milk
Even though milk has gone up with inflation, it is still much cheaper in the US than it is in most other countries.
For example, Americans pay roughly $4.30 per gallon of 2% milk, while Canadians pay roughly $12-$14 per gallon of 2% milk. ($3.50/L CAD)
Jeans
Jeans in America cost much less than in most other countries. What can cost you around $100 here will be double that abroad.
Apple Products
Apple products cost a lot more in other countries than in the US. For example, an iPhone 14 costing $799 USD in America would cost $1,076.46 USD in the UK.
Final Thoughts
While America has many things that cost a lot more than in other countries, there are also many things we pay a lot less for as well.
In fact, Americans report being fairly satisfied with their lives living in the US. So, it must not be so bad.
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