Exactly. Again, I will use Switzerland as an example and give a few typical salaries:
Banker in Zurich with 10y experience: 12k USD/M
Engineer in Zurich with 0y experience: 8k USD/M
so far it probably sounds pretty normal for people used to SF / NY levels right?
Here's the difference:
Mc Donald's cashier in Zurich: ~3500 USD/M
Median Salary in Zurich: ~6000 USD/M
Median Salary across Switzerland: ~5600 USD/M
These give you the low and mid points of the salary spectrum. It's just much more compressed than in the US - this Patagonia jacket should be <10% of anyone's monthly salary, probably affordable for >90% of population. If it isn't, then it would be if you take social services into account that are designed to correct for such market mistakes that leave people behind in poverty.
And this is Switzerland, mind you, probably the most US-like libertarian and decentrally governed place in Europe. All of this would be affordable to Americans if your government wouldn't just pander to the big corporations and throw out money by the boatloads for insanely overpriced defence contracts.
Switzerland is a small country benefitting from being the hub of a disproportional amount of global banking and commodity trading. I think that props up the minimum wage at McDonalds. That being said, the pride that the Swiss - from a McDonald’s worker to bus driver - show in their jobs is noticeable to this American.
Banking revenue is 7-9% of Swiss GDP, on par with many industrial nations. Commoditie Trades are disproportionate to Switzerland’s size for sure, but I fail to see how that translates to salaries in McDonalds - their main target market is hardly bankers and commodity traders. I think it has much more to do with the social safety net which imposes an implicit minimal wage (companies have to offer something significantly above what one can get from the government).
Banker in Zurich with 10y experience: 12k USD/M
Engineer in Zurich with 0y experience: 8k USD/M
so far it probably sounds pretty normal for people used to SF / NY levels right?
Here's the difference:
Mc Donald's cashier in Zurich: ~3500 USD/M
Median Salary in Zurich: ~6000 USD/M
Median Salary across Switzerland: ~5600 USD/M
These give you the low and mid points of the salary spectrum. It's just much more compressed than in the US - this Patagonia jacket should be <10% of anyone's monthly salary, probably affordable for >90% of population. If it isn't, then it would be if you take social services into account that are designed to correct for such market mistakes that leave people behind in poverty.
And this is Switzerland, mind you, probably the most US-like libertarian and decentrally governed place in Europe. All of this would be affordable to Americans if your government wouldn't just pander to the big corporations and throw out money by the boatloads for insanely overpriced defence contracts.