Originally Posted by Mr Madras:
“Like claiming prices in the UK are not, in fact, much higher than in the US? You mentioned sales tax to back up your argument. VAT here is 25%. State sales tax across the US seldom goes above 10%. Some states levy no sales tax at all. That's a 15-25% difference on consumer prices right there. ”
Those low taxes say a lot in themselves. Whilst taxes are lower in the US, the residents there get a lot less from the government - which means in many cases they have to pay for it separately. Take health insurance as an example, something most Brits take for granted (and whine a lot about) but when compared to what most Americans have to pay on top, it is great value for money.
The way America works is that people have more choice of whether they want to pay for things, where as in the UK (and most other democratic industrialized nations) tax is higher, but it pays for more.
To point out that tax is lower in America means that people in the UK are being ripped off is not looking at the whole picture. You have to take everything into account. Wages, taxation and what it provides, the additional insurances required, exchange rates, cost of living etc - it also depends entirely what you do for a living. A waiter for instance in a New York Cafe may have different things to complain about than a waiter working in a London Cafe.
Originally Posted by Mr Madras:
“Add in the fact that (with some distinct exceptions) real competition exists in most parts of the American market, especially in the retail sector, as opposed to the mere illusion of competition here. ”
Interesting. Yet Sky then see's competition important enough that they subsidize their Now TV box to £10, and offer an Entertainment package for £7 compared to the cheapest American online-only, contract-free pay-TV equivalent - Sling TV at US$20 (and this offers enormously less on-demand & no subsidized box).
The UK is hardly a competition desert. The major supermarkets compete against each other in the UK no less than the ones in the US do. Same with online stores in the UK. Yes, prices may be cheaper for most things in the US still, and I don't deny that over-all, most things are cheaper there, but it is still just one country and there is a much bigger picture that needs to be looked at.
Originally Posted by Mr Madras:
“Consistently, UK companies seek higher profit margins when compared to the EU 27 or the US. ”
This is a pointless statement. The economies in all 27 countries are vastly different from each other. I would hardly put the economies of Greece, Romania or Croatia in the same league as the UK for a start.
But looking at major economies that do compare, and the best I can use as an example is Germany where I currently live. I can assure you, that with everything you find cheaper in Germany than the UK, I can find 5 that is more expensive here. Hell, I could find 20 for every one that you find, but I do have a life and don't want to waste it on pointless research.
Originally Posted by Mr Madras:
“Edit: BTW the current Now TV box is cheap for no other reason than Sky chooses to heavily subsidise it. Everything else you wrote was specious.”
That "subsidy" that you mention, almost as if it was a dirty word, is a classic example of how competitive the UK market really is, and contradicts your previous points.
The very fact the Now TV box
isn't subsidized in Germany, and that they sell it for full price, and offer a lot less once you buy it, is a classic example of how less competitive things are in many countries outside the UK.
And I can assure you, there is nothing at all wrong in that Now TV subsidy. For a start, once you buy it, there is absolutely no obligation to pay for the Now TV service. In fact, you would hardly know the box is a Now TV box as the Now TV apps are no more prominent than the free ones on there (and the free ones are amazing). Ever used an Amazon Fire TV box? That is not subsidized for the most part, and although it can be used without Amazon Prime, Amazon take up 80% of the UI.
At the end of the day Mr Madras, if the UK does so badly, and as you suggest, the entire rest of the EU27 is better. You can move any day to any other EU country and live and work without the need of a visa - check it out for yourself. A holiday isn't enough to figure out what cost of living means - you need to live in the country, pay taxes, pay insurances and get the local wages.