[tomp]

The difference is that Brits feel poor when they come to the US, whereas Americans feel rich when they come to the UK.

Sure, PPP (Purchasing Power Parity) comparisions are important (e.g. it's easier to live in Thailand with $1000 per months than in NYC), but absolute values matter as well.

[totalrobe]

Very wrong. American here, was in the UK last summer and it physically hurt me to buy anything.

UK and American prices are around the same number but in pounds which meant ~1.6x USD at the time.

[kspaans]

That's probably the 20% VAT that's included in the price. If you are coming from a state with no sales tax, this could explain your surprise. Hell, coming from Canada where I was paying 13% sales tax (never included in the sticker price), I found UK prices shocking.

[raverbashing]

> The difference is that Brits feel poor when they come to the US, whereas Americans feel rich when they come to the UK.

Are you sure about that? For a start, converting USD to GBP will make their money go not as further

Might be just general British negativity, they probably feel miserable at Disneyland.

[toyg]

I live in one of the most "miserabilist" parts of the UK (where Morrissey grew up, just to mention one celeb), and everyone goes crazy for Disneyland. We don't have direct flights to SF but we get dailies to Vegas and Florida. 'nuff said.

[tomp]

> Are you sure about that?

No. I was just going off what parent said. I've seen way too little UK (mainly only London) and US (mainly only NYC) to judge myself.

[avar]

Sure they matter, but only to the extent that foreign expenditures are a part of your costs.

I.e. sure when you go to the US and have to buy USD with GBP you'l be at a disadvantage, or when you buy some electronics priced in USD, but how big a portion of your spending is that compared to food/rent/commuting/hobbies etc., all of which are priced in your local currency.

[simonbarker87]

Wrong way round, when I go to the US I generally don't bother looking at the price of things as it's all so cheap. Even if the exchange rate was 1:1 it would be cheap (decent clothes are amazingly cheap, petrol/diesel is laughably cheap and eating out is great) but with the exchange rate being the way it is it's even better. The was a time before the crash when the exchange rate was $2 to the £, so long as you could afford the flights over you could have the best holidays in the US.

This is only true when being a tourist though as you are thinking in your native currency and basing purchasing decisions in that frame of reference, when you actually live and work in the respective country then (ie if you move to another country) then that stops being an issue as you are earning in the new currency.