Re: SWR, terminal values, TIPS, I-bnds & comm pape
I am most familiar with northern europe. The standard of living has been improving very quickly over the time I have been visiting family, from about 1975 to the present.
However, crime is a big problem in major cities. I feel far safer in Detroit than Rotterdam, for example.
Increased wealth has allowed more and more people to purchase vehicles. Unfortunately the infrastructure is set up for far fewer vehicles than are being used today. As wealth and auto miles increase, there will be more and more problems with traffic. That said, there are more opportunities to live without an automobile, however anyone who can afford one seems to want one.
The retail distribution system in Europe is inefficient. Retail stores are zoned into central business districts and not permitted out on the "prairie". This is good for cities, however high real estate and rent prices drive retail prices up. The trucking and delivery of retail goods is difficult in urban areas. For all its negative effects on the central city, Wal-Mart and similar retailers have brought the cost of essential household items down to an incredibly low level.
Given equal incomes in Euro and Dollar, housing prices in Europe are far higher. I recently compared a similar job in the Netherlands and the pay rate was roughly equal in Euro's to my pay rate in Dollars here in the US. Housing prices in my area in the US were roughly half of prices for similar living styles, for entry level (or a bit better) housing.
I have the right to live either in the US or Europe. My impression is that you can live like a king in Europe if you are wealthy (multi-millionaire), but if you want to live well as a middle class citizen, the US is a better place.
I also tire of the strange attitudes that many European people have, so maybe my decision is based more on personality of the neighbors than money.
Every four or five years I think about moving back to Europe, but it only takes a few days on vacation to convince me that the US is the better place to be.
The short answer is that they "live well" by consuming a different mix of goods and services than we do.
What most economists would recognize as the main problem in the U.S. is that its distribution of wealth is much less equal than in other industrialized nations. That is related to the fact that the U.S. has a lower average life expectancy, higher infant mortality rate, and higher crime (especially, murder) rate than any other "advanced" nation.
I am most familiar with northern europe. The standard of living has been improving very quickly over the time I have been visiting family, from about 1975 to the present.
However, crime is a big problem in major cities. I feel far safer in Detroit than Rotterdam, for example.
Increased wealth has allowed more and more people to purchase vehicles. Unfortunately the infrastructure is set up for far fewer vehicles than are being used today. As wealth and auto miles increase, there will be more and more problems with traffic. That said, there are more opportunities to live without an automobile, however anyone who can afford one seems to want one.
The retail distribution system in Europe is inefficient. Retail stores are zoned into central business districts and not permitted out on the "prairie". This is good for cities, however high real estate and rent prices drive retail prices up. The trucking and delivery of retail goods is difficult in urban areas. For all its negative effects on the central city, Wal-Mart and similar retailers have brought the cost of essential household items down to an incredibly low level.
Given equal incomes in Euro and Dollar, housing prices in Europe are far higher. I recently compared a similar job in the Netherlands and the pay rate was roughly equal in Euro's to my pay rate in Dollars here in the US. Housing prices in my area in the US were roughly half of prices for similar living styles, for entry level (or a bit better) housing.
I have the right to live either in the US or Europe. My impression is that you can live like a king in Europe if you are wealthy (multi-millionaire), but if you want to live well as a middle class citizen, the US is a better place.
I also tire of the strange attitudes that many European people have, so maybe my decision is based more on personality of the neighbors than money.
Every four or five years I think about moving back to Europe, but it only takes a few days on vacation to convince me that the US is the better place to be.