Standard of living in the USA
It's no secret that the standard of living in the United States ranks first in the world, and the gross domestic product indicator is at the leading level.
The country's population is about 329 million people, among whom there are representatives of various nationalities from many countries of the world. In America, as in other capitalist countries, the stratification of society into rich and poor people is characteristically visible. The difference between them in terms of income is 8 times. But, despite the fairly high gap between the resources of the rich and the poor, the latter can afford a sufficient level of material support in everyday life.
In addition to current expenses, wages can be used to provide decent education for children, medical care, and the purchase of a car.
Purchasing housing for citizens in the United States also does not seem to be a difficult process, since the existing credit system makes it possible to obtain a mortgage and purchase housing in an affordable manner.
Average salary in the USA in 2021
Americans' wages directly depend on the amount of time worked during regular work hours and during overtime. The working week is 40 hours a week and does not differ from the Russian one.
Americans are traditionally paid at an hourly rate. In 2021, the rate is $27 for regular work, double for overtime work. In annual equivalent, the average income of US citizens is more than 47 thousand dollars. If we translate the income of Americans into a monthly period, then its size before tax deductions is $3,916. In ruble equivalent, this is more than 250 thousand rubles - a sufficient amount by Russian standards for a comfortable life.
Americans' wages are directly affected by their level of education. Having a higher education allows you to earn an average of $33 per hour, a master's degree brings from $70 per hour.
Pay for men and women differs. Men earn more - on average more than $900, women from $730 per week.
Minimum wage in the USA in 2021
In America, a minimum hourly wage rate is established at the legislative level, below which the employer does not have the right to make payments for work. The official source of the minimum wage is the United States Department of Labor. The latest information shows that the minimum labor rate is $7.25 per hour. At the level of individual states, local laws set their own minimum rate, which should not be lower than the federal one.
According to statistical information posted on the Department of Labor website, the leaders among states in terms of the highest labor rate ($):
– Colombia – 14;
— New York – 11.10;
- Oregon - 11.
The outsiders in terms of the minimum rate for hourly labor are the states ($):
- Maryland - 9.25;
— Michigan – 9.48;
- Alaska - 9.78.
In large cities such as New York and Washington, the average minimum rate is higher than in the periphery.
What are the payroll taxes?
The country has a multi-level budget, which is divided into federal, regional and local. Depending on what level of the tax system the tax belongs to, deductions are made there.
The state strictly ensures that citizens report all information about their income to the tax authorities and strictly pay taxes on it.
The following mandatory taxes exist:
— income tax, which depends on income and ranges from 10 to 37% of income;
— social payments from wages – 6.2%:
— medical fee is 1.45% of income, and in the case of income over 200.0 thousand dollars, it is reduced to 0.9%;
— local taxes (for example, environmental tax), set independently in each state, the rate is up to 11%.
All contributions to the country's budget are made on a progressive scale and are set in such a way that the higher the income, the higher the tax. Tax preferences have been established for families with children, disabled people and military veterans, which allows reducing the tax burden for this group of the population.
Despite the fairly large total amount of tax deductions, after paying all taxes, state citizens are left with, on average, more than $3,620 per month or 231 thousand rubles.
US salaries by occupation in 2021
America is an attractive country for migrants from all over the world. The most motivating factor when choosing a country is the salary level. It depends on knowledge, professional skills and practice. The best-paid professions predominate in the banking, medical, business and aviation sectors. The least paid professions in the service sector.
The remuneration of medical workers, unlike Russian ones, occupies a leading position in the ranking of professions. Medical personnel work on high-quality modern equipment, are highly qualified and receive decent remuneration for their work. Thus, doctors receive an average of 170-200 thousand dollars a year, and average medical staff - 40.0 thousand dollars.
Teaching work in America is in great demand, since the country has a widely developed network of educational organizations. The industry needs a large number of professionals. A teacher's salary averages 40-50 thousand rubles per year and depends on the length of teaching experience, the prestige of the educational institution and its location, depending on the state.
Engineering professions top the ranking of the most in-demand professions. Holders of technical education are required in the construction industry, information communications, manufacturing sector, and oil industry. The average salary of engineers reaches up to 250 thousand per year and depends on the state and industry.
The American state is a world leader in the production of IT technologies, which requires highly qualified personnel in this industry. Employers compete for highly skilled programmers, which increases their pay ratings. The average income of IT specialists is about 150 thousand dollars per year.
The wages of blue-collar workers are lower than those of holders of vocational education. Welders and drivers earn on average up to 50 thousand per year, turners and miners up to 70 thousand, loaders and low-skilled workers up to 25 thousand dollars per year.
Thus, the salary of the lower sector of the level in excess of 100 thousand rubles per year makes any profession attractive for migrants, even low-paid by American standards.
Cost of living in the USA per month in 2021
Necessary daily expenses per person average 1400-1500 per month. The amount of spending depends on the US state and the degree of distance from the center.
The cost of renting a small apartment or studio is $800. Meals, provided you buy groceries in a store and prepare your own food, require up to $400.
Other costs include (average dollars):
— transport or gasoline — 100;
— mobile communications – 50;
— medical insurance – 200.
Leisure expenses are: $11 for a movie, $50 for a concert. The cost of a glass of beer is 8 dollars, a cocktail is 10.
Thus, the most expensive part of the average American resident is renting an apartment or paying off mortgages for housing, followed by food costs.
What is the standard of living of the population in the USA
Living standard indicators
When calculating the standard of living in any country, as a rule, they rely on the following indicators:
— population growth — the ratio of birth rates and deaths (demographic factors),
- life expectancy is the main quality that characterizes the ecology of the environment,
— quality and accessibility of medical services,
— prices for essential goods (food, clothing, etc.),
— the unemployment rate, as well as the level of income of the population.
In addition to the above indicators, there are others related to the level of living comfort of people in the United States:
— social protection of the population,
- cultural and entertainment sphere,
— quality of such types of recreation as cultural, recreational, etc.,
— respect for the rights and freedoms of citizens. Both native-born US residents and people with resident status or citizenship are equally equal before the law.
Standard of living in the USA in 2021
In America in 2021, the average salary of 67% of citizens is about 42 thousand dollars a year (meaning the net income of the average state resident, which remains after deducting mandatory taxes). The average income in the USA depends on the state, since each of them has its own pricing policy regarding not only wages, but also food and accommodation. Based on this, we can conclude that the standard of living of American citizens is much higher than, for example, Russians.
Residents of America are satisfied with their own standard of living, including material well-being, since, among other things, they can take advantage of a loan to purchase housing at a minimum interest rate. Since the risks of job loss are quite low, American citizens are not afraid to purchase housing on credit; in addition, the government provides significant support to the unemployed.
An ordinary US resident can organize his life at a decent level (eat well, develop culturally, visit entertainment and sports facilities, pay living bills).
Thanks to the social policy pursued in the country, Americans feel protected and, importantly, in demand both at work and in the family. Both rich and poor have access to the same entertainment that does not require large financial outlays.
Retirees in the USA standard of living and quality of life
The pension system of the United States of America, like in most developed countries, consists of a system of public and private funds from which contributions are made to citizens entitled to pension benefits. A distinctive feature of the American system is the ability, with the help of private fund organizations, to provide oneself with several pensions, which significantly increases the level of well-being of a non-working person.
How old is the pension?
The retirement age for US citizens is 62 years. However, differences in gender are not taken into account. However, depending on the state, the retirement age varies. This age depends on the period of time during which a person accumulates the required amount of contributions to pay a pension.
The minimum age of 62 allows you to count on 70% of deductions from the allotted pension, so most pensioners continue to work until an older age.
The maximum retirement age limit depends on the year of birth of the pensioner:
- 1938 and earlier - up to 65 years;
- 1939 to 1943 - up to 65 years old plus 2 months before the standard retirement age;
- 1943-1955 - up to 66 years;
- 1955 -1959 - up to 66 years of age plus 2 months for each subsequent year;
- 1960 and younger - up to 67 years old.
This scheme allows the state fund to receive enough contributions from the worker, which allow, based on the average age of life of the pensioner, to pay the average size of the labor pension.
How much do pensioners receive?
The amount of payments to retired citizens depends on their length of service and the time of retirement. On average, citizens receive $1400-1600 per month, which is only 40% of the average salary.
If a citizen has not made any deductions, then he can only count on the minimum monthly threshold of $733. per person and 1100 for two spouses. For an official working year, the pension increases by $100. Workers in professions that do not require special qualifications receive an average of $850. Rescue service specialists and military personnel receive a pension of more than 3,000 US dollars.
Work for retirees
Due to the increasing age of life, sometimes pension savings for a comfortable old age are not enough. Therefore, some pensioners continue to work. In retirement, citizens begin to engage in entrepreneurial activities and rent out housing.
Many retirees get jobs as drivers or auxiliary workers with wages of 20-30 dollars per hour. Such part-time work strengthens the family budget and allows you to live at a higher quality level.
In general, the approach of retirement age encourages Americans to be socially active. In the United States, there are government programs for training retirees. This category of citizens has the right to study at universities, colleges and even live in dormitories during the study period. Retraining programs exist in the fields of healthcare, education, art, and science.
Benefits for pensioners
Upon retirement, US pensioners have certain benefits that allow them to reduce family budget expenses. The Social Security Service is developing programs in which participation can improve the well-being of pensioners.
Benefits popular among American retirees include the HARP program, which can reduce mortgage payments by more than $4,000. Under this program, the government pays part of the mortgage payments for pensioners.
With retirement, payments for health insurance and some tax payments are reduced, so by saving on such contributions, the income of retirees remains stable.
Most online private enterprises offer numerous discounts for pensioners. These include discounts on food, clothing, household goods, and excursions to national parks.
Pensioners also purchase public transport tickets at a discount. Air and rail carriers offer tickets with significant discounts for booking.
Life expectancy of men and women in 2021
The average age at which Americans die is 81.1 years for women and 76.1 years for men. Thus, the average life expectancy for the average American is 78.7 years (as of 2021). In terms of indicators, the country ranks 33rd in the ranking of countries in terms of life expectancy.
The main reasons for death are heart and vascular diseases, including stroke and coronary heart disease. One of the main factors contributing to the increase in the number of deaths associated with cardiovascular diseases is the increased percentage of excess weight in the population, which causes diabetes mellitus and increased stress on the heart.
Details about life in the USA
Demographic factors
At the end of last year, the population of the United States was about 332,524,270 inhabitants. In 2021, the population growth was about two and a half people (that is, 0.75%).
In terms of life expectancy (male population - 75 years, female population - 81 years), America ranks 30th in the world. It is important to note that each year the number of people dying from diseases such as cancer and stroke is decreasing, which supports the belief that the standard of living of Americans is improving. Modern medical care makes it possible to achieve such results, although it is considered expensive for ordinary Americans.
Living conditions
On average, there are 2 rooms for every American citizen, which is a positive (comfortable) factor for living. According to statistics, the average American spends about 20% of the family budget on utility bills, which is quite acceptable.
It is important that, in accordance with American law, each child has the right to a separate room.
The majority of American residents choose private houses for living, and they do not have external fences. However, there is a backyard where sports grounds, swimming pools and other infrastructure are located that affect the comfort of life.
Unemployment in the USA
According to this indicator, a favorable situation is developing in the country. The percentage of unemployed is 4.9% (about 8 million people). It must be said that even during the global financial crisis, Americans who lost their earnings accounted for only 10%. People with higher education can apply for highly paid jobs.
The main advantages of living in America:
— Immigrants who choose the United States as their place of residence are offered various programs to speed up the process of adaptation to society, and are also given the opportunity to learn English.
— Low percentage of corruption and unemployment (compared to other states).
— A decent level of medical care and, accordingly, life expectancy. Availability of state health insurance for people who have reached retirement age (over 65 years), as well as children under the age of 19 years.
— Compliance of labor costs with the level of wages (which allows every citizen to ensure a decent life).
— A good and friendly attitude towards people who have arrived in the country for permanent residence.
Health insurance in the USA
Despite the developed system of quality of medical services, the quantitative provision of Americans with medical services leaves much to be desired. The problem of health insurance has existed in the country for a very long time and requires reform.
Features of insurance
There is no free medicine for people in the country, and medical expenses are the problems of the people themselves. In order to reduce mortality and the number of diseases, the country introduced a mandatory requirement to have health insurance. Failure to do so may result in a fine. However, the cost of an insurance policy with a wide range of services is not always affordable for the average American. Many citizens limit themselves to purchasing insurance with a minimum set of options. As a result, only part of the population is covered by basic dental, pediatric, and ophthalmological services. The other part is unable to pay for the services of specialized doctors.
To provide medical care to low-income segments of the population, the country launched the Medicaid program, and Medicare for elderly citizens.
The working population has the opportunity to pay for health insurance with funds from the employer, for whom insurance is not an obligation, but only an advantageous offer for employees.
According to statistical information, only 84% of Americans have an insurance policy, of which in 60% of cases insurance is purchased through an employer, in 8% it is purchased independently and in 16% through government programs.
Social insurance system
Social insurance in the states, unlike medical insurance, is at a progressive level of development and helps a significant part of the population. Social insurance contributions are paid to budgetary funds. Of these, payments are made upon the occurrence of insured events.
Insured events include the following situations:
- loss of a wet nurse;
- unemployment;
— loss of ability to work;
- old age;
- industrial injuries.
For social security, every citizen must have an SSN (social security number), which is proof of social security. The amount of insurance payments depends on the employee’s length of service and income.
Comparison of living standards in the USA and Russia in 2021
The American standard of living is decades ahead of developed countries. The US government is doing everything it can to remain a major player in the world. It is difficult for both Russia and European countries to compete with America. There is a significant lag - in social infrastructure, in the level of human capital, in the flexibility of the system. Many analysts come to the conclusion that states do not have enough effective budgeting structures, as in the United States of America.
In recent years, the flow of immigrants from the CIS countries to the states has not dried up - residents have an ingrained opinion that life in America is much better than in their countries. But this is debatable! Of course, the predominance of the middle class is considered an attractive side of the United States. This means that the average American earns an average income and can afford: good apartments, several cars and the opportunity to travel several times a year. You can add affordable education to the list. Americans are the most liquid labor force. There are several reasons for this. Firstly, they are fluent in English, and secondly, their education is valued all over the world and is considered superior compared to specialists from other developed countries.
Features of the American mentality
Each country has certain rules of behavior, lifestyle and character traits.
Despite the fact that most of the population consists of direct descendants of emigrants and emigrants themselves, there are patterns of behavior in the country that surprise newcomers. Stereotypes should be taken into account when moving for permanent residence in the USA. American children are instilled with a competitive spirit from the cradle. From all sides it is argued that Americans are the first in the whole world, the whole world should be equal to them. With this worldview, Americans live and communicate with foreigners.
The internal way of life is characterized by widespread obedience to the law and the requirement of strict observance of individual rights from others.
Widespread cooperation with law enforcement agencies, including proactive appeals to law enforcement officers, is a common occurrence in the American mentality. They live strictly according to norms and rules, and others are forced to respect their rights. Here everyone must take each other into account. Neighborhood watch is a concept that is used in the country and is defined as a neighborhood watch. Any American who sees a suspicious person can immediately contact the police.
Americans smile often. A smile on the face is a rule that remains even if a person has “cats scratching his soul.” An American does not always open his soul to his friends and relatives. For this purpose, they have a developed system of psychological assistance.
American humor is different from Russian. Americans laugh, in most cases, at things that make a person uncomfortable. In Russia, on the contrary, humor is deeper and more meaningful.
Demographic Features
As of 2021, about 325 million people live in the United States. For several decades now, the population has continued to grow. This is mainly due to migrants, including from Russia.
The life expectancy of the average American citizen is 78 years (for men - 75, for women - 81). In terms of longevity, the United States ranks 30th in the world. Also, the mortality rate among the population from cancer and stroke is decreasing from year to year - this is a clear indicator of the high level and quality of life of the population. Developed medical care contributes to achieving this indicator, but it is expensive for residents.
Russian diaspora
The Russian diaspora in the United States includes citizens of former Soviet republics. Most of the visitors, of course, are Russians, about 2 million people. The total number of the Russian diaspora in America numbers more than 3.5 million people.
Conventionally, there are five migration waves, when our compatriots actively moved to America and settled throughout the country.
There are Russian communities in cities such as New York, San Francisco, Los Angeles, Miami, and Houston.
Typically, Russians settle in certain Russian-speaking areas of the city, where there are shops and restaurants serving customers in Russian.
Some communities, being in the same city, do not always communicate closely with each other. This is due to different waves of migration, when, for example, some of those who emigrated from the Russian Empire moved at the beginning of the last century. The community lives its own life with its own traditions and values and does not allow strangers in.
A unique community of Russian programmers lives in Silicon Valley.
The largest part of the Russian diaspora lives in the state of New York (about 1.6 million people), of which about 600 thousand people live in the Brighton Beach area in the Brooklyn district of New York City.
Unemployment in America
In terms of the percentage of employment of the population, the United States occupies a leading position. The unemployment rate in the country is 4.9% - 8 million people. And even during the years of the global financial crisis, there were only 10% of citizens who lost their jobs.
The United States of America has favorable conditions for finding high-paying jobs, which are available to people with higher education. The level and quality of life largely depends on this (the average salary is about $4,000 per month).
It’s easy to find a job with a higher education
Immigration programs
There are several official ways to go to live in America, but this process is expensive and the visa applicant must have certain requirements:
— no criminal record;
— good health without serious chronic diseases;
— lack of experience working in government agencies, especially if the work involves secrecy;
The main immigration programs are the following
Marriage (visa K)
For such a visa, it is advisable to have no more than 1 divorce and prove to the consulate that the person moving will make an excellent married couple for the American spouse.
Student (F-1 and M-1 visa)
Allows you to study in US educational institutions. To obtain it, you must confirm your knowledge of the English language.
Labor (visas L, H, O, P)
Designed for persons who temporarily travel to work in the United States and have certain qualification requirements.
Family reunion
To obtain a visa, an American citizen submits a petition to the consulate asking for permission for his relatives to enter the country.
Humanitarian password
Special permission for persons who are in emergency circumstances. Issued by the US Secretary of Justice. To receive a password, applicants undergo a thorough selection process.
Green card lottery
The organizer of the lottery is the US State Department, which annually determines the winners using a random combination of numbers. Citizens of any country where the lottery is held, including Russia, can become participants in the lottery. With a green card, a person receives the right to work and live in the territory of the American state for up to 10 years.
Anatoly Klyosov. Life in the USA: a look from the inside
I have lived in the USA for several decades and would like to briefly talk about the standard of living in this country. Of course, income is distributed very unevenly. Those who earn millions and hundreds of thousands of dollars a year make up about 5% of the population, and about half of Americans have incomes so low that by law they are not taxed at all.
Imagine that a person earns 40 thousand dollars a year. It would seem like a lot, but the structure of expenses in the United States is such that after paying for the essentials, there is almost nothing left of this 40 thousand. Judge for yourself. Housing rents, of course, vary from state to state and city to city, but are usually not less than one thousand dollars a month. More often - more than two thousand, especially in cities. The exception is apartments located below ground level, that is, these are basements, and they pay about $600 a month. And then you have to look hard for something like that.
Now let's take medical services. Their cost depends on whether you have insurance or not. If there is, then you pay several hundred dollars a month for it, at least two hundred. This insurance includes the simplest medical services. For example, they do not cover the work of a dentist or an ophthalmologist. Good health insurance costs much more, over one thousand dollars a month, and is unaffordable for a huge number of people. Many people don't have insurance at all.
But if you don’t have insurance, then one ambulance call will cost you one thousand dollars, and for one day in a hospital ward you will have to pay at least two thousand. One visit to the doctor costs about one hundred and fifty dollars. For that kind of money, the doctor will just talk to you, briefly examine you, and won’t even take a cardiogram. By the way, this is the answer to the question why blacks in the US have a much higher mortality rate from Covid than whites. Black people are sick at home because many of them don’t have money for insurance. For example, I look at statistics for the state of Alabama, and there is a colossal mortality rate from covid, and literally two hundred miles north there is a city where a good IT company is located, the income of the residents is high and the mortality rate is minimal.
As for food, most spend about one hundred and fifty dollars per person per week. I’m talking about everyday, basic food; nothing exotic like lobster is included in this amount, and I also don’t take into account the cost of wine. Of course, you can live on potatoes and bread and water, then it will be cheaper. This is not just a figure of speech; many low-paid people save on food as best they can.
Taking all this into account, it is clear why an income of two thousand dollars a month will be much lower than the subsistence level. I note that the state pension is small and within narrow limits - usually between 900 and 2000 dollars per month. It practically never gets higher, even for relatively wealthy people. For some people, pensions are not limited to payments from the state. A pensioner is sometimes paid extra by his former employer, but this usually does not apply to low-paid people. People themselves also save money for their old age, but again, low-paid people cannot afford this. This must also be taken into account when we assess the standard of living in the United States. Most people live from check to check.
If we talk about crime, then in the country as a whole it is low. However, I keep a loaded revolver next to me, and I have a rifle and pistols at home. I received permission to store and carry concealed weapons a long time ago. A police officer I know gave me advice: if they break into your house, shoot to kill. If you only hurt, then they will sue you. The attacker will say that he just knocked on the door to ask for water. I really hope I don't have to use a weapon.
I may be asked, why do you, with such a situation in terms of prices, salaries and pensions, live in America? So my income is much higher than the US average. In America, in-demand and highly skilled professions pay very well. I emphasize that two conditions must be met simultaneously: excellent qualifications and demand in precisely the area where your qualifications are high. For example, I worked for many years as a scientific consultant in the courts. Corporations sue corporations, invited consultants are paid hundreds of dollars an hour, and litigation can last a long time.
The conditions for my scientific work were also very good: a well-equipped laboratory, wide access to relevant literature, and so on. For me, there is one more plus in American life: the state does not interfere in private affairs, I pay my taxes regularly, and there are no questions for me.
Of course, not only consultants earn very well, but also lawyers, doctors, and specialists in a number of other professions. However, many immigrants do not have such professions. They work in relatively low-skilled positions. Their life is not at all sugar.
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Housing in the USA
The housing market in America is quite stable. When renting or purchasing residential meters, you should pay attention to the area, the presence of social infrastructure, trade organizations, and safety.
Buying a home
Real estate purchase transactions are carried out through real estate agencies. Each American state has its own regulations. The Realtor who acts as an intermediary must be licensed to conduct the transaction in the appropriate state.
The average cost of housing is $220 thousand, which is almost 4 times more than the average annual income of the average family. To purchase real estate, most Americans use banking products, including low-interest mortgages. For Americans, the mortgage is 3-7% per annum, for foreign citizens 5-6%.
Among Americans, the phenomenon of mobile homes is common. There are entire areas where people live in trailers.
Rental of property
To find suitable housing, they use the services of special agencies. Housing selection services are paid by agreement either by the landlord or the tenant. The remuneration should be proportional to the cost of the monthly rent.
When renting out an apartment, the parties sign an agreement where all conditions are clearly discussed. Typically the rental period is from 6 months to 1 year. During this period, the apartment owner cannot require tenants to vacate their housing.
When moving into an apartment, tenants pay a security deposit in addition to the monthly payment. This amount will be insurance for the owner in case of damage or premature departure of residents. The average rental cost is from 1.5 to 2.0 thousand dollars per month.
Thousands of migrants move to the United States every year in search of a better life.
In search of a better life, they leave their homes and go to another country. Moving to America requires financial costs and effort. The person moving must be aware that he is leaving for a region with a different mentality. different from the usual. He has to accept it and get used to it. Otherwise, the current move will not bring satisfaction and the necessary peace of mind. You can see the current rates of 163 currencies with charts of their changes on the website of our partners currency.events.
What is the standard of living in the USA in 2020?
In the United States of America, 67% of the population has an average income at an affordable level - the average American's net income after taxes is around $42,000 per year. Thanks to such indicators, the population lives at a much higher level than the majority of Russian citizens.
The population of this American country is satisfied with their quality of life and level of well-being. The average resident of the United States can afford to eat quality food, visit cultural places, have fun, play sports, and pay for housing.
