The average work in the US has far more purchasing power than german worker. The problem in the US is: housing, education, and medicine - three areas where the government has strongly distorted the market and driven up cost.
That implies the average US worker can afford more despite lower median wage (before the US dollar took off, anyway).
>housing
Housing is nowhere near a problem compared to most of Western Europe. Americans live huge and house prices are still low relative to CoL. Unless your measuring standard is a megapolis in, you know, the most desired place in the world.
And I'd say healthcare is the biggest problem. The average price per square foot of housing hasn't gone up as much as people think. The problem is that people want to live in a big house in a specific place. Education is expensive but if you go to community college for two years then a decent state school you can come out without crushing debt, which you can pay off if you study something marketable.
Healthcare, on the other hand, is out of control. I'm nearing the end of my career and am well-off but have to assume that getting sick could wipe out our savings.
> The problem in the US is: housing, education, and medicine
Honestly I'm confused; These are very crucial, these are basic, and if they are out of reach for an average worker, does the higher purchasing power (assuming it's actually higher in US) even matter that much without them?
Medical expenses was (is?) the leading cause of personal bankruptcy in the US.
Housing is a mixed bag. Some areas are cheap. Some are extremely expensive (all the big west coast cities included). You can find a balance in some second or third tier cities.
Education is a racket. This is a relatively new problem. Costs outpace inflation and wage growth by a massive margin.
If I was in my twenties, and looking to start a family, I’d seriously consider renewing my UK passport or getting and IE passport (via parents) and moving to Europe.
Except for housing, the governments failure to intervene in these distorted markets is the problem - not the government itself distorting the markets. Even for housing, there are plenty of high level policies that could be implemented regarding zoning, tax assessment, etc. that would ameliorate the issue.
