American travelers in England, France and Germany are accustomed to costs in U. S. Dollars being approximately 35% higher than in the USA, about the difference in value of the Euro to the dollar. (The exchange rate is around one Euro = $1.37.)
But when they visit Sweden, they experience much greater shock. The prices seem twice as high. Yet Sweden has one of the highest standards of living in the world and, from indications from the upscale products on display and the jammed restaurant (for some of the worst food we have encountered), people are prosperous.
How can that be? As starters, Sweden has a very favorable balance of trade, as opposed to the perennial USA deficit. So the Krona is very strong compared to other currencies.
Sweden doesn’t pay 8% more of its Gross National Product (GNP) on health care than does the USA. The Swedes seem content with the quality of their “single payer” system through the government. (Think Medicare for everyone.)
Sweden does not spend 3% of its GNP on wars and policing the world.
Recent studies suggest standards of living among the Scandinavian countries and the USA are comparable. Such comparisons are difficult to draw because they depend upon what is valued, a very subjective matter. Moreover, much of USA measured well being is associated with suburbs and exurbia that grew following World War II, perhaps overvalued now that the size of families has shrunk and the younger generation and empty nesters are seeking city living.
Americans who do not have an opportunity to travel abroad have no idea how backwards our nation is becoming due to the waste of at least 10% of our GNP on health care and heedless wars. This is squandered money that otherwise would go into investments by government and private enterprise and enable us to compete on an equal footing with Asia and Scandinavia.
If they did travel, they would join us in crying out for real reforms.
