High prices down under
December 17, 2010 8:59 PM Subscribe
Why is everything so much more expensive in Australia?
Inspred by this newspaper article discussing Australian retailers' concerns that online shopping is gobbling up their profits.
My question is, why are retail prices in Australia so expensive to begin with?
Sure, our dollar is at parity with the US and our wages are about 20-30% higher (but only in the lower 75% of the population - the top echelon in Australia doesn't earn nearly as much as in the US), but that shouldn't explain why retail goods (eg cosmetics, clothes, games, laptops, books, watches, jewellery) in Australia are 50-75% inflated compared to those in the US.
Is anyone able to shed light on this phenomenon? Is it merely because the market, till recently, was happy to bear such prices?
Inspred by this newspaper article discussing Australian retailers' concerns that online shopping is gobbling up their profits.
My question is, why are retail prices in Australia so expensive to begin with?
Sure, our dollar is at parity with the US and our wages are about 20-30% higher (but only in the lower 75% of the population - the top echelon in Australia doesn't earn nearly as much as in the US), but that shouldn't explain why retail goods (eg cosmetics, clothes, games, laptops, books, watches, jewellery) in Australia are 50-75% inflated compared to those in the US.
Is anyone able to shed light on this phenomenon? Is it merely because the market, till recently, was happy to bear such prices?
This post was deleted for the following reason: poster's request -- jessamyn
It seems to me that this same question was asked on AskMe several months ago. Basically it boils down to two points: Australia and New Zealand are relatively small first-world markets and everything that is not made on either of those two islands either has to be flown in (expensive) or shipped in (less expensive but also less efficient). Add to that any tariffs, exchange rate fluctuations, etc., and goods become much more expensive than in other first world countries.
For what it's worth stuff in Hawaii costs much more than in mainland USA (other than macadamia nuts and pineapples).
posted by dfriedman at 9:09 PM on December 17, 2010
For what it's worth stuff in Hawaii costs much more than in mainland USA (other than macadamia nuts and pineapples).
posted by dfriedman at 9:09 PM on December 17, 2010
This thread is closed to new comments.
posted by dougrayrankin at 9:02 PM on December 17, 2010