Comparing Prices : China vs. United States 2011
It is time to stop all those bankers from telling us that the RMB (Chinese Yuan) is undervalued. The easiest way to do this is to educate everyone on the costs of an average citizen in Shenzhen.
A can of coke is $0.60
A one pound steak (Beef) from the market is : $3.88 for an average steak (Not a great rib eye or sirloin like we are used to in the U.S.) The redeyes I bought for my BBQ on July 4th were $7.50 per pound.
A pound of oranges is : $0.75 for Asian oranges and $1.25 for American Oranges
watermelon is : $0.30 per pound
A McDonald’s Big Mac Meal is $2.71 *Note that the coke is the “happy meal” sized coke.
Gallon of gasoline is : $4.39
Price to purchase an apartment that is 800 square feet: $200,000
Price to purchase a 2000 square foot home : Over a million
Now take into consideration that the minimum wage in Shenzhen is under $275 per month. How do they manage?
1) Health care coverage is only $45 per month for serious medical problems
2) Public transportation is around $0.60 per trip anywhere in the city.
3) To rent an apartment can be as low as $150 per month, but that is an apartment that no one in the U.S. would consider renting. No air conditioning, one small bathroom the size of a closet, and on the 5th or 6th floor of a building with no elevator. My rent for my 900 square foot apartment with one bathroom is $475 per month.
4) Families stick together and pool all of their earnings.
5) Most families do not own cars. They have electric bikes and take the bus….or even walk to work.
Now we hear that the bankers in America are saying that the RMB is undervalued. They are saying that America is suffering because the RMB is undervalued. GET REAL. OPEN YOUR EYES TO REALITY.
The truth is that the American public can only be sure of one thing from bankers, from the Federal Reserve, and from firms like Goldman Sachs. That one thing is lies….constant lies.