Aces High Bulletin Board
General Forums => The O' Club => Topic started by: FUNKED1 on February 05, 2004, 01:37:59 PM
-
Was just thumbing through this week's Economist, and Germany and France have similar figures as the US, and Japan and UK have way more household debt (per capita as a fraction of disposable household income). Kinda helps to put things in perspective.
-
Japan?? Are you sure you read it right?
-
Japan... home of the 99 year mortgage.
MiniD
-
Originally posted by Mini D
Japan... home of the 99 year mortgage.
MiniD
HA!
-
Originally posted by Mini D
Japan... home of the 99 year mortgage.
MiniD
and the most beautiful women on the planet!
-
And if RJ says so, U BETTER BELIEVE IT! :D
-
you havent met one from the Marshall Islands.
:aok
-
Who is RJ?
-
99 year mortages? Nope. 10-20 years at less than 3% interest.
Average savings per Japanese household is still over US$100,000.
-
Ron Jeremy of course. Shame on you for asking Funked :D
-
Rolex, they should use some of that savings to pay off debts. The average Japanese household has debts equal to 136% of its net disposable income, 25% more than households here in the States.
-
Originally posted by CyranoAH
Ron Jeremy of course. Shame on you for asking Funked :D
LOL DAMN I blew it.
I usually just call him "The Hedgehog".
I got this DVD, it rocks: http://www.ronjeremy-themovie.com/
-
I see now. The problem with the number is that it is 'disposable income.' It's an unconventional metric. There are so many things wrong with the metric (as it relates to Japan) that I can't even begin to explain... :)
Another economist filling paper with ink.
-
Doesn't Japan have negative interest rates? In that case you could consider debts to be as investments. :)
-
Originally posted by FUNKED1
Doesn't Japan have negative interest rates? In that case you could consider debts to be as investments. :)
LOL if only.................
Actually its the disposable income side of the calculation that tips it IMO.
In the UK we calculate it after such things as Mortgages are deducted........so our massive mortgages have a sort of "double whammy" on the calculation particularly when you look at typical house prices across the nations.
I am surprised that France and Germany average out almost equal to the US. The US is usually considered to have much higher disposable income than any european nation. Although disposable in come is usually expressed as a % of earnings which would not be the case for this calculation.
House mortgages have an overbearing influence on these figures............. in the UK a 3 bedroomed "condo" with garage parking (we call it a semi detached) is about $200,000 depending upon the locality. This will have been typically purchased by some one who has been granted a mortgage = to 3.5(max) x their (3 x combined for a couple) salary over a period of 25 years.
If you work that out then you will see that on an average UK salary of $25 > $30K per annum then a couple earning a combined $55K per year will take home approx $42K leaving $3.5K per month for all utilities and local taxes plus a mortgage with monthly payments of + $1.5K for the mortgage alone. Leaving a disposbale joint income of around $500 to $750 per month at best after utilities,local taxes,essential transport, basic food and clothing is deducted.
Compare this to main land europe and you will see that the house plays a much lesser role in attriting disposable income.
Where in fact taxes are (generally) higher but house loan burden is lower and often granted by the government.
-
Unfortunately, no negative interest rates, Funked. :)
Tilt is absolutely right. There is no common basis for direct comparisons of 'disposable income' vs. debt without substantial manipulation of numbers.
The component of mortagages is indeed skewing things due to accounting/tax treatment, among a host of other issues in determining 'disposable income.' For example:
The average yearly income for the head of a Japanese household is 7,400,000 yen (~US$ 70,000 at current exchange rate).
1. Contrary to popular misinformation, Japanese income tax rate is substantially less than that of the U.S. or Europe.
2. The out of pocket expense for medical care is extraordinarily low compared to the West. A visit to the doctor will cost only about $10 and a filling at the dentist will cost about the same.
Medical insurance costs less than equivalent coverage in the West. (And look at the income difference...)
3. There is no direct burden on the employee for transportation costs. The company pays the cost for the employee to get to and from work. (Just one of many, many ways that disposable income gets skewed)
26Mbps Adsl costs about US$25 per month and 100Mbps fiber is about US$60 per month. Even cigarettes are 1/3 the cost of Europe or the U.S. An AH subscription can be paid with a couple of coins...
There are so many variables in 'disposable income' that direct comparisons are fruitless. :)
-
Chpt 7 :)