Why is the US economy so cheap?

Cheap and expensive is only relatively speaking, compared with our country, the prices in the United States are indeed a lot cheaper. This is not only reflected in agricultural products, but also electronic products, medical and health products are much cheaper than domestic, but the labor cost in the United States is really not low.

The monthly salary of American citizens is basically 3000 US dollars, which is much higher than that of our country. However, when it comes to prices, we find that prices in China are much higher than those in the United States. The price of soybeans in the United States is 1.2 yuan per catty, while that in China is 1.7 yuan per catty. This is true of corn, pork and beef. While the income of our country is not as good as that of the United States, the price is much cheaper than that of our country.

However, although the prices of the above agricultural products are cheaper, friends who have been to the United States may find that the prices of processed agricultural products sold in American supermarkets are still very high. This is mainly due to the fact that the labor cost in the United States is too high and the raw materials are not valuable, but the labor is quite valuable.

For the reasons why the price of agricultural products in the United States is on the low side, the scientific development of agriculture believes that there are mainly the following reasons.

The cost of agricultural products in the United States is low.

As we have mentioned above, as long as it does not involve too much manpower, the price of agricultural products will not be high, and American agricultural products, whether crops, food and vegetables, or aquaculture, have generally implemented mechanization on a large scale, and because the land rent in the United States is relatively cheap, the price of agricultural products is really much lower than that in China. There are 300 million people in the United States, but the agricultural population is only 20-3 million. However, relatively speaking, the agricultural population in our country accounts for 600 million. By contrast, the production cost of small-scale peasant economy in our country is much higher.

China is an importer

The United States is not only an industrial power in the world, but also a big agricultural power. Nowadays, the United States not only exports industrial products abroad, but also a large number of agricultural products, while China is in the opposite position. For example, the Apple phone is US $699, which is equivalent to less than 5000 yuan. However, the price in China is as high as 8000-10000 yuan, the key of which is to add import duties, especially for agricultural products. Last year, China imported 33 million tons of soybeans. In this way, how can the price of products in our country come down?

Lower transportation costs in the United States

At present, although the transportation of agricultural products such as vegetables and grain has been exempted from road transport management fees, transport management fees are still required for the rest of the products. On the other hand, there is no charge for the transhipment of goods in the United States, and the process of transshipment of goods can be transported from the beginning to the destination without extra diplomatic fees.

However, it seems that while American prices are cheap, we should not think that it is easy for us to live in the United States. for example, it costs dozens of dollars to take a bath and get a haircut, and the cost of services such as hiring someone to repair the car is much higher. And this level of consumption is difficult to consume without sufficient earning power.

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