The price is right

I'm surprised by the similarity in prices (petrol / gasoline not withstanding) between the US and UK.

1. A coffee at Starbucks is about 1.70
2. A main meal at a chain restaurant is about 8.00
3. A pint of Guniness is about 2.00
4. A regular price CD is about 13.99
   

And sales tax at eight per cent in Washington state is three per cent more than Washington DC, and two per cent more than PA - the other two states I've visited.

But of course, the prices I've given are payable in dollars, which is currently 1.8 to GBP.

So what does that mean for the cost of living?

• The median wage is $40,000 in Spokane and £30,264 in London
• However, that difference must be accounted for in mortage repayments. The median house price in Spokane is almost $200,000, the average in Greater London £358,500.
• 12.3% of people in Spokane live below the poverty line whilst 15% of (working age) Londoners live below the poverty line*

* a big caveat - the US definition of the poverty line is absolute rather than relative. The UK's is 60 per cent of average earnings. That's a lot of people living in poverty.

Interestingly, income tax doesn't appear to be significantly different (there's no state income tax in WA).