Fruits of Their Labor

The picture of living standards is also skewed by the relative benefits of the welfare state. "Because purchasing-power figures tally mainly market prices, they probably underestimate the standard of living in France and Germany, where you don't have to pay for a lot of the services, like health or education, that you need to buy in the U.S.," says John Schmidt of the Center for Economic and Policy Research in Washington. Higher earnings in Britain or America are often bought through extra time at the treadmill; workers probably put in at least three hours a week more than French or German equivalents. No wonder they need all that champagne.

© 2008