Talk about BS studies, this one claims that Britain now has a higher standard of living than the US, since the falling dollar has raised Britain’s per capita above America’s. The devil is in the details, however:
The Oxford analysts also point out that Americans benefit from lower prices than those in Britain. With an adjustment made for this “purchasing power parity”, the average American has more spending power than his UK counterpart and pays lower taxes. (In the run-up to Christmas many Britons travelled to New York and other American cities to take advantage of the strength of sterling against the dollar and those lower prices.)
However, the British typically have significantly longer holidays than Americans as well as access to “free” healthcare.
The figures may be of small comfort to Britons worried about house prices and facing a severe squeeze on their incomes this year as a result of record petrol prices and rising energy bills.
Citigroup, which was the most accurate forecaster of Britain’s economy last year, predicts the slowest rise in consumer spending this year since 1992.