Why is the cost of living significantly lower in China than in America?

[Boojatta]

If it isn't significantly lower in China, then how do people in China survive?

If it is significantly lower, then are there any strategies that could be learned from China and applied in America to bring down consumer costs? If there are, then these bad economic times may be a good time to consider them.

[Hannah Bell]

1. fewer economic rents.

[Boojatta]

4. For example?

[formercia]

2. Not to worry

The powers that be will figure them out for you.

[WillowTree]

3. Largely because their **standard** of living is significantly lower.

[Hannah Bell]

5. depends on who you're talking about. standard of living not particularly lower

for a significant percent of chinese.

for those in rural areas or the immigrant workers in the cities, significantly lower.

[rfranklin]

15. The standard of living is lower for 90% of the population...

The average salary for a computer programmer was $1100 per month in 2005. Even with inflation it is nowhere near a U.S. salary.

[Boojatta]

17. I thought that standard of living depends on both income and cost of living.

You mentioned income, but what about cost of living?

[Hannah Bell]

22. i think 10% of the population is "significant".

[Name removed]

6. Deleted message

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[WinkyDink]

7. Because it is historically a peasant society.

[Boojatta]

34. Are you suggesting that the cost of living is low in dollar terms

because a large proportion of the economy operates without the use of money and that many people are able to obtain the necessities of life without money, but aren't able to obtain very much money?

[doc03]

8. Labor costs! Well the Chinese could outsource

their jobs to say Africa to lower their labor costs. I remember the day when Japan was cleaning our clock, then we found a lower labor market in China. It's all about a race to the bottom.

[xchrom]

9. For the poor in china - is it lower?

Maybe a better way to look at it.

[Taverner]

10. Fewer standards

Believe it or not, a capitalist country (USA) has more regulation than a communist (PRC) country does.

They don't even offer health care. Point that out to the next teabagger you meet.

[Boojatta]

14. In the long run, will that keep the cost of living low?

For example, deregulation in banking can in the long run increase the cost of living.

[Taverner]

16. Everyone wants the 'quick fix'

And it dooms economies, every time

[alphafemale]

11. ...ummm...communism and the people not in the cities have the life quality of a rat in a ditch?

I wouldn't live in China for all the tea in...well.

[Boojatta]

13. There could be various reasons for not wanting to live somewhere.

For example, there could be a high crime rate, or no freedom to peacefully protest against government policies. Each of those problems could arise regardless of whether the cost of living is low or high, and regardless of whether your personal income is low or high.

[obliviously]

12. Lower capital gains tax

Lower taxes in general with less regulation on business and an overall friendlier attitude toward small business in general.

Thinking about taking a slow boat there myself, but if I wait long enough they will own us anyway!

[B Calm]

18. LOL

[greytdemocrat]

19. You may be on to something. n/t

[B Calm]

20. Yea. . .

JOKES

[Name removed]

21. Deleted sub-thread

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[Hello_Kitty]

25. And the people working in the sweatshops are really happy! eom

[obliviously]

27. What are you, anti communist or something?

[aaaaaa5a]

23. China purposely keeps its currency low.

Thus, its citizens don't have the buying power they should. Plus, the living standards in China are far lower. Wages are lower too. This leads to a much lower standard of living and lower costs too.

[Boojatta]

33. How does a currency exchange rate that makes imports expensive

keep the cost of living low in China? Please explain that.

[reformist2]

24. It's mostly housing.

You see, we Americans prefer to live in houses or at least decently sized apartments with room to move about. And for that, big business is punishing us.

[Boojatta]

26. Why is the cost of living high in Japan? Homes in Japan are mostly small.

[reformist2]

28. I think it's because Japan is much more urbanized. Still, their homes are much nicer than in China.

[Johonny]

30. land

Japanese have far less usable land, thus making land an extreme commodity. Also consider in China you don't own the land. The Chinese government owns the land. You own the lease on the land.

[northzax]

31. Japan has two major problems

the first is land. in total, the country is about the size of Montana, but only 11% of the land is arable and about another five percent is suitable for building. that totals about the size of West Virginia. now imagine putting 127 million people into West Virginia.

which leads to the second problem: you have to feed, house, employ and clothe all those people in such a small area. that means imports, tons and tons of imports, nonstop. fuel, food, everything. That is expensive.

[Boojatta]

29. Kick

[obliviously]

32. What for?

[Boojatta]

35. I'm hoping for an answer that is clearer and at least a bit more elaborate than

the answers that have been given.

[obliviously]

37. We couild try it again with Cuba!

[RedCloud]

36. because my pal got spurned by MIT and went there and helped create what you see!

Way not to get that $400,000 per annum offer on time MIT!