“Simply put. Would you rather earn $50000/yr. in a place where homes cost $300,000 or $40000/yr. in a place where homes cost $200,000. That’s the difference in PPP.”
- Housing is more expensive in the US than it is in Sweden while wages are higher in the latter country.
On the other hand, things like gas and groceries are cheaper in the US.
Anyhow, let’s have a look at what kind of house an average family easily could afford in the Stockholm area (consisting of say, a car mechanic and a nurse and two children).
In Stockholm, wages are higher than in most other parts of Sweden and houses, hardly surprising, cost more. Admittedly, none of these houses has a nice kitchen, but I still deem them rather attractive.
Below, houses in the price range of $ 400 000 - 500 000 not very far from Stockholm (remember average wages are around $ 42 000-45 000 in Stockholm).
http://www.svenskfast.se/Pages/ObjectViewPictures.aspx?objectid=3CRSC7AK1RSKC846
http://www.svenskfast.se/Pages/ObjectViewPictures.aspx?objectid=3D0R73FPT84K0H65
http://www.svenskfast.se/Pages/ObjectViewPictures.aspx?objectid=3CJJG0FHB3IR225M
Funny you haven’t mentioned tax burden, have you? Sweden is definitely higher than the US, huh? Bottom line, right hand corner, purchasing power parity cuts through the bs. You STILL make more and keep more and can spend more in the US than in Sweden. Its a better deal overall.