Observations on why living standards are grossly lower in London than NY
Megan McArdle doesn't have a long history in banking. According to her biography she spent a mere summer as an associate in an investment bank before becoming a writer for the Economist and a blogger.
She does, however, have an MBA (and therefore could possibly have been a banker) and interesting views on why the standard of living in London is so bad.
According to McArdle, her time in London revealed to her that, "the standard of living in any given profession is lower [than in the US]." Specifically, she says this was manifested in:
1) Horrible housing:
People in London live in smaller houses that are hotter in summer and colder in winter than houses in the US.
2) Horrible commuting:
People in London have longer and more expensive commutes than people in the US.
3) Horrible behaviour:
McArdle observed non-poor people in Europe doing stuff that only poor people would contemplate doing in the US. This included bringing packed lunches to work; hanging washing on the line; not having cable TV.
"I don't want to sound as if I'm saying Britain's a terrible place--it's lovely, and I miss it," says McArdle. "But the amount that people are able to consume is much less than the amount Americans are able to consume, and many of the things they forego make real difference in things like personal comfort."
Above average earners in banking may be able to avoid horrors such as hanging out the washing, but McArdle's observations remain interesting, particularly as Obama's slamming of banks in the US has helped raise hopes for London's future as a financial centre.
