"Imagine a country so great that even those who hate it refuse to leave."

Recently, I was in four hospitals for five months with a nasty blood infection that attacked my spine. Invariably, the nurses there, including a girlfriend of a Yankee player, believed that our country was poor. They used to congregate around my bed while I was unable to walk, and I told them about economics and about the national
economy. They were surprised…

And since our American media are going apoplectic but incorrectly about "struggling" Americans” who "have to deplete their saving just to buy food," I have prepared from the available economic literature a comparison with other affluent countries:

America vs. Canada:

American workers generally earn higher average salaries and take-home pay than their Canadian counterparts. The vastness of the country and its markets and its high rate of productivity are frequently cited as the reasons.

Average salaries and numbers

U.S. average: The average annual salary in the U.S. is approximately $72,700 USD.

Canada average: The average annual salary in Canada is about CAD $63,530, which equals roughly $47,070 USD when converted.

The gap: In specific fields like technology, finance and engineering, the wage gap is even wider. For instance, tech jobs in San Francisco often pay double or triple what

Productivity gap: Canada's lower wages are frequently tied to lower national productivity levels and a lower economic output per capita compared to the US.

Taxes and cost of living

Taxes: Canadians generally face a higher overall tax burden, including higher sales and provincial income taxes. Americans often pay lower income taxes.

Health care: Canada funds health care publicly through taxes, while Americans often pay substantial out-of-pocket costs for health insurance and medical care.

Expenses: Housing and major city living costs can be exceptionally high in Canadian hubs like Toronto and Vancouver, making the lower nominal salary stretch less than it might in mid-sized U.S. cities.

America vs. Germany:

Average gross salaries are higher in the United States than in Germany, though taxes, benefits and the cost of living change the actual take-home value.

Average and median salaries

United States: The average full-time monthly salary is about $6,228 (roughly $75,000 annually).

Germany: The average full-time monthly salary is about $5,545 (roughly $63,000 annually).

High-income variance: The U.S. market generally pays higher baseline wages for professional roles like software development and finance, with a wider gap between
entry-level and top-tier pay.

Taxes and take-home pay

United States: Federal, state and local income taxes are lower, leaving a higher net take-home percentage on gross earnings. The average is 46 percent in Germany, whereas the effective tax rate is 16 percent to 25 percent in the U.S.

Germany: Tax rates and mandatory social contributions (health, unemployment and pension insurance) are higher, reducing net take-home pay to fund robust social programs.

Cost of living and purchasing power

Housing and expenses: Rent and daily living costs are notably lower in Germany than in major U.S. metropolitan areas, which balances out some of the salary differences.

Hourly PPP: When adjusting median earnings for purchasing power and actual hours worked, hourly rates for full-time workers can skew closer to or favor German workers who work fewer total hours per year. While there is no mandated minimum paid vacation, Germany guarantees five to six weeks of vacation.
Ivan Orisek lives in Forestburgh, NY.