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Oxford analysts report that living standards in Britain are set to rise above those in America for the first time since the nineteenth century. Real GDP per person in Britain will be £23,500 this year, compared with £23,250 in America, reflecting not only the strength of the pound against the dollar but also the UK economy’s record run of growth since 2001. But the Oxford analysts also point out that Americans benefit from lower prices than those in Britain. If real GDP per person is more in the United Kingdom than in the United States but Americans benefit from lower prices, does this comparison of real GDP person really tell us which country has the higher standard of living?
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