Question

Hello Economist,

This week your assignment covers time travel. I own a time machine, yes, I keep it in my garage of course. I will make you an offer you might refuse. I will transport you back to England in 1776, but you must stay in the year 1776. If you wish you can bring up to 12 family members, no pets. Also if you choose to go back in time 100 acres of land will be provided. A castle on the land is also provided and along with a full staff and a standard trunk full of gold. Remember, this is a one way trip without a second chance to return to the twenty-first century.

The alternative is to still in the present and work at the Java Café (new coffee experience) for $75,000 per year as an assistant manager.

which alternative would you choose and why

Answer 1

Solution

I would choose to remain in the present and work at the Java Cafe in the US instead of moving back to the England in 1776,since,my present salary is $75,000 which is ~ 59.37% more than the average wage in the US.

According to the World economic forum,many of the US colonies were richer than that of the UK by 38%-50% during the times of late 1770's.

Firstly,the cost of living in the UK is 6.51% lesser than that of the US. (This is based on the assumption that the comparison is made between London and New York which are capitals for the respective countries)

Now average full-time wage in the UK as of 2019 is £36,611.According to the exchange rate of 1 GBP = 1.30 USD, it would be $47,594 approximately

So there is not much difference in the mean wage in the UK where income distribution is much more unequal.

The average full time wage in the US as of 2019 is $47,060 according to the bureau of labor statistics.

In future,I predict that US will move more forward in development when compared to the UK as the US encourages fresh talent from across the world and is a world leader.The UK on the other hand is struggling to grow and has other issues like aging population,trade issues arising due to Brexit etc.,

Which means as of present situation,living in the UK is better than in the US.

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