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Agatha Christie could afford a maid and a nanny but not a car

fullstackeconomics.com

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Re: Agatha Christie could afford a maid and a nanny but not a car

#121
post #77

Earlier quoted context omitted.

In Egypt, that's true unless you haggle. You can always haggle to get close to Egyptian prices, but if I didn't have my friend with me to show me how to do that, I would have paid American prices the whole trip. I'm sure a lot of places work similarly. At the end of the day, they want to make a sale, doesn't matter who you are just what they think you'll pay.

Funny, I found shop vendors from some Arabic cultures would almost become offended if you _didn't_ barter with them -- at least if they knew you weren't just a tourist. For the (American) tourists wandering through they'd suck it up and just charge them 10x the price. ;)

"This bloke won't haggle!"

Re: Agatha Christie could afford a maid and a nanny but not a car

#122

Agatha Christie's quote is well-known but the exact same situation still holds today in many countries. Here in Viet Nam it is extremely common for middle income families to have a maid or nanny (or both) but not a car. The cars themselves are quite expensive. A Honda Civic is $33,000 by itself whereas a nanny (6-days a week, 10 hours a day) is $400-500/month and a maid who works 9 hours a week, i.e. 3 days a week, 3…

Also the extra usefulness of a car is much lower. In SEA you can transport the whole family on a scooter.

Re: Agatha Christie could afford a maid and a nanny but not a car

#123

The point is how much money does it take today to have the equivalent wealth status in society as Christie. It is almost certainly far more than $50,000, which is a tradesman's salary these days. So, irrespective of what that money now buys, the true inflation figure (how much does it cost to live at a certain level in society) is far greater than the official figure.

[deleted]

Re: Agatha Christie could afford a maid and a nanny but not a car

#124

The point is how much money does it take today to have the equivalent wealth status in society as Christie. It is almost certainly far more than $50,000, which is a tradesman's salary these days. So, irrespective of what that money now buys, the true inflation figure (how much does it cost to live at a certain level in society) is far greater than the official figure.

Inflation is defined based on utility, not a certain level of society. The second would be something like GDP growth, much higher than inflation, and definitionally a zero-sum game. Inflation says that you would rather prefer to live it today's society at say $60,000/year (with smart phones, cars, Internet TV), than yesterday's society at say $50,000/year (with two maids, but none of the technology). Introspecting, I…

Looking at the maid's and nanny's income, I think 2020's incomes are _definitely_ preferable to 1920's for many.

Re: Agatha Christie could afford a maid and a nanny but not a car

#125

Agatha Christie's quote is well-known but the exact same situation still holds today in many countries. Here in Viet Nam it is extremely common for middle income families to have a maid or nanny (or both) but not a car. The cars themselves are quite expensive. A Honda Civic is $33,000 by itself whereas a nanny (6-days a week, 10 hours a day) is $400-500/month and a maid who works 9 hours a week, i.e. 3 days a week, 3…

I had a fellow American friend who lived in Bali for a year in the mid-70s. When he arrived, he shopped for his own food and cooked it. But he found that, since the merchants charged people by their social class, he could hire a housekeeper and have them buy and cook his food for the same price as buying his own found. And people expect him to do this.

I love the concept! Eh good old days.

Re: Agatha Christie could afford a maid and a nanny but not a car

#126
post #61

Interesting that he compares everything that is hard to compare but ignores one thing that would be very easy - rental pricing. You had to pay it then and you have to pay it now. "four bedrooms, two sitting rooms, and a “nice outlook on green.” The rent was £90 for a year." According to one CPI calculator ( https://www.in2013dollars.com ) "£90 in 1919 is equivalent in purchasing power to about £4,951.54 today" and "£…

That still doesn't seem like an "easy" comparison. Rents tend to be tied to the infrastructure/facilities and earnings potential within a given radius of the property. 1919 London was dirty with terrible air quality (far worse than Beijing or Mumbai today, literally choked my great grandmother to death on a bad day) and with nowhere near the infrastructure or work opportunities it has today. A fairer comparison to 19…

Sure, there are many ways that my simple (not easy) comparison is short changing current London but if you want to live there now and make the average wage then it may not matter to you so much that air quality is better or that streets are cleaner (because everywhere in the UK that is also true) when you cannot afford an apartment in the location that you would have been able to 100 years ago.

Re: Agatha Christie could afford a maid and a nanny but not a car

#127

Agatha Christie's quote is well-known but the exact same situation still holds today in many countries. Here in Viet Nam it is extremely common for middle income families to have a maid or nanny (or both) but not a car. The cars themselves are quite expensive. A Honda Civic is $33,000 by itself whereas a nanny (6-days a week, 10 hours a day) is $400-500/month and a maid who works 9 hours a week, i.e. 3 days a week, 3…

It's not a surprise - today's Vietnam per capita GDP is same as U.S. (and probably UK since the countries were close in their economic development) in 1919 (13-14% of today's U.S. level).

Interestingly, in societies with several "tiers" made up of people of different origin (many of them full-on citizens anyway, it's not about legal rights but about race/class which is perceived to be same thing), it can work even on a much higher level of economic development.

Cyprus where i live is at around 60% of U.S. level, and average family can have a full-time maid, as long as she's from Philippines. I was surprised to know that many of these Philippines maids have better immigration status than myself and this is certainly not because they are "forced to work for pennies or risk being kicking out of the country". It's just a perception of how much a Philippine maid is worth.

Re: Agatha Christie could afford a maid and a nanny but not a car

#128

Interestingly enough, I'm typing this in Singapore, where in 2022 it's quite common to have a "maid" (helper/domestic worker, in the current local lingo), but no car. Singapore imports domestic workers for poor neighbouring countries like the Philippines and Myanmar, which keeps wages very low, on the order of US$450/month, not too far off Christie's inflation-adjusted US$220/month. Even the fully loaded cost with go…

Do more expensive cars get taxed at 100% also?

Re: Agatha Christie could afford a maid and a nanny but not a car

#129

Agatha Christie's quote is well-known but the exact same situation still holds today in many countries. Here in Viet Nam it is extremely common for middle income families to have a maid or nanny (or both) but not a car. The cars themselves are quite expensive. A Honda Civic is $33,000 by itself whereas a nanny (6-days a week, 10 hours a day) is $400-500/month and a maid who works 9 hours a week, i.e. 3 days a week, 3…

I had a fellow American friend who lived in Bali for a year in the mid-70s. When he arrived, he shopped for his own food and cooked it. But he found that, since the merchants charged people by their social class, he could hire a housekeeper and have them buy and cook his food for the same price as buying his own found. And people expect him to do this.

>people expect him to do this.

Right, it's part of how society works. In some places, having a housekeeper is a critical part of the economy and its incredibly impolite not to have one, if you are part of the expat class.

Re: Agatha Christie could afford a maid and a nanny but not a car

#130

Interestingly enough, I'm typing this in Singapore, where in 2022 it's quite common to have a "maid" (helper/domestic worker, in the current local lingo), but no car. Singapore imports domestic workers for poor neighbouring countries like the Philippines and Myanmar, which keeps wages very low, on the order of US$450/month, not too far off Christie's inflation-adjusted US$220/month. Even the fully loaded cost with go…

Do more expensive cars get taxed at 100% also?

No, they get taxed on a sliding scale of up to 180%. Expand "Car" on the page below for details.

https://onemotoring.lta.gov.sg/content/onemotoring/home/buyi...

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