The ripoff - Why does Europe pay more money ?

"I live in Britain. And much like the rest of Europe, we're always the ones who get crapped on by Big American Co. But why are we treated so poorly? I've done some maths to see just how bad we get it."

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snoop_dizzle3940d ago

article. Not only does American companies do this but japan as well. But yeah it does suck.

Jeremy Gerard3940d ago

are you guys slow, it is not the companies it is the anti business attitudes most of the socialist European nations have. They tax and tariff imports to death, Your government does not wnat you buying American goods, they tax the crap out of imports, plus they place unfair hurdles on American and foreign companies trying to do business in your countries, look inward before you blame America as usual.

Real Gambler3940d ago

We use the exact same hardware as in U.S. We have no special tax on electronic apppliance crossing the border. It's not transport, yet hardware is way more expensive.... Even better, a downloadable game, which is $2.99 in the U.S. is $3.99 in Canada. Same game, no transport, no box, nothing. Current exchange rate between both country is about nothing right now, so it's simply 25% more. Very hard to explain isn't it???

Gorgon3940d ago

Jeremy, are you RETARDED or something? Why the hell don't you learn something about Europe before giving such an ignorant reply?

Emmo3940d ago

America does have sales tax to add to those prices, but even so I agree we are getting royally ripped off.

Not only that but we get everything last too.

Come on MS, Sony stop shafting us Brits up the aris

P4KY B3940d ago

I've got a relative in the US who is a teacher and she earns about $35000.
In the UK the same grade of teacher would earn £35000. Which is $70000.

As the exchange rate between the £ & $ is 1:2 now.

A £425 PS3 in the UK would be $850 in the USA.
So yes we do pay more for our PS3s here in the UK but in real terms PS3 is a smaller proportion of our annual income

snoop_dizzle3940d ago (Edited 3940d ago )

you get hit hard with taxes, and you pay heavily for gas.

More so than the states.

isn't that correct?

You do get free health care though

But still europe is getting screwed.

P4KY B3940d ago

Gas (fuel) isn't actually that expensive in real terms for people in the UK.

Americans generally drive much further than the british due to the sprawling nature of their cities.

In the UK I drive a VW diesel which gets 53MPG UK.
My brother in law gets 17 MPG US (20 MPG UK) from his Buick. (and my VW is quicker).

A gallon costs me £4.22 (($8.44)
A gallon costs him $2.20 (well it did when i was last there)

$8.44 / £2.20 = 3.8
53 MPG / 3.8 = 14MPG UK

then you have to take into account the difference in earnings and you see its not that different.

And yes i do know that americans could chose to drive european economical cars. But they dont because european cars cost lots in the US.

But the best thing about our high tax high earning society here in the UK is that i can choose to holiday in the US and its almost for free due to the exchange rates and earnings difference. For someone from the US to holiday in europe it is very expensive for them.

clm0013940d ago (Edited 3940d ago )

Its all about inflation really. In Europe we have at much more regulated labor market than in the US, primarily due to very strong unions.

This means that salaries are much higher than in the US ... salary increases -> demand for goods increases -> prices on goods increases -> demand for higher salaries increases .... (this is an extreme simplification).

To give en example of this, minimum wages here in Denmark is almost 35.000 USD / year. Since prices on goods are also much higher than in the US, actual buying power is only slightly higher for a minimum waged employee compared to the US.

Considering the above, and the fact that goods imported from outside the European Union are taxed with 12% import duties + VAT (25% in Denmark, 17 % Great Britain, 16% Germany), I think its wrong to say that we are cheated by US and Japanese firms - its simply at question of different inflation, import duties and VAT.

MrSwede3940d ago

Finally someone put a little light on this topic. A PS3 costs around 860 bucks here in Sweden and you Americans discuss whether it´s worth the money or not with the prices in USA?

bYkICr3940d ago

Because it depends on the low exhange rates? Remember when a dolla costs more than 10SEK or more many years ago, we didn't complain because it was cheaper here.

PumPum3940d ago

The ps3 actually costs 670-690 € (Euros) €-------->>>$
Which is $900USD. So taxes are an excuse allthough we have higher taxes but the higher prices are not just because of taxes.
Jävla fittigt land dethär. Escalade costs $50k in the U.S and 150k € in Finland. Regular gas/bensin costs ~1,40 €/litre.

FordGTGuy3940d ago

Higher Taxes(universal healthcare) and the high gas prices is a mix of taxes and they use a higher octane then we do.

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