Why Do You Agree to Work in Lithuania For Less Than Half the Salary That Is Acceptable in Germany, While You Buy Food and Clothes For the Same Price As In Germany?

 The economists of the Scandinavian banks reigning in Lithuania clearly answer this simple question. You agree to work for so little and pay so much because you are stupid. In the market, if you agree for so much, then you get for so much. Stupid ones are also beaten in the church. You have entered the capitalist church, but you do not understand what is going on here. So who are you now? Orphans? No problem, they will give you legal drugs, it will be easier immediately.

     "Vilnius earns 60 percent less than residents of the German capital Berlin, but in order to maintain a similar standard of living, Lithuanians have to spend only a third less amount. For some goods and services, Lithuanians have to pay even more than Germans.

 

    

 

     According to Numbeo, a platform that compares various economic indicators of different cities around the world, the average income of Berlin residents after taxes is 3,658 euros, in Vilnius - 1,393 euros, or 61.9 percent. less.

 

    

 

     However, when comparing the prices of goods and services, the differences are not so great. For many foods or clothes, Berliners pay just a few percent more.

 

    

 

     According to Numbeo, the general level of consumer prices in Vilnius is only 30.8 percent lower than in Berlin, however, if the housing rental prices, which are much higher in the German capital, are taken into account, the difference increases to 39.2 percent.

 

    

 

     However, there are products and services for which residents of Vilnius have to pay more than residents of Berlin. For example, milk costs 8.3 percent in our stores, and wine or beer costs as much as 60 percent, respectively. and 46.6 percent more.

 

    

 

     Almost 37 percent In Vilnius, you would have to pay more if you wanted to play tennis, and if you send your child to a private kindergarten, you would have to pay even 110 percent more than in Berlin.

 

     Do not forget about the shadow

   

 

     SEB Bank's economist Tadas Povilauskas Delfi says that the difference in living costs in Berlin and Vilnius is smaller than the difference in wages, because the prices of basic goods in both capitals practically do not differ.

 

    

 

     "Food prices in Lithuania have already caught up with the average prices of the European Union and even slightly exceed that average. But raw materials cost the same everywhere, energy prices are also ending up equalizing. Lower prices in Lithuania have been maintained for many years due to lower wages, i.e. i.e. cheaper labor. But our salaries are growing rapidly, so we are also chasing Europe in terms of prices", explains T. Povilauskas.

 

    

 

     According to him, of course, such trends are not useful for Lithuanian residents, but we should not forget that higher prices are expenses for some residents, and income for others.

 

    

 

     In addition, the price level is usually regulated by the market itself, so traders and service providers ask for what the population wants to pay.

 

    

 

     "It would also be worth assessing the level of the shadow economy, which is higher than in Germany. And when we talk about the income of the population, we must keep in mind that a significant part of that income is unaccounted for. This means that this money is not included in the wage statistics, but is included in the consumption and price statistics. This slightly distorts the data when we compare countries with each other," says the economist.

 

    

 

     According to him, the prices of food and clothes in Vilnius are the closest to the level of Berlin, which, when added together, make up about a third of the total expenses of the population.

 

    

 

     "Why those prices have reached Western levels, apparently you have to ask the retailers. But one reason is probably that we are not able to get these products cheaper, and the sales show that Lithuanians want to pay that much", notes T. Povilauskas.

 

     Among the leaders in terms of spending on food

 

     Delfi recently wrote that Lithuanians spend an average of 218 euros per month on food, which is about a fifth of their total expenses. Lithuania is among the 12 countries that spend the most on food in Europe.

 

    

 

     In Europe, the Swiss spend the most on food (325 euros), Norwegians (308 euros) and Danes (281 euros).

 

    

 

     The lowest amounts spent on food in Europe belong to the residents of Ukraine (98 euros), Belarus (89 euros) and Moldova (88 euros).

 

    

 

     The Germans spend the same amount of Lithuanians on food, the Dutch spend a little more (221 euros). It is true that, although Germans spend the same amount as Lithuanians, the share of their expenditure on food is much lower (12%, compared to 21% for Lithuanians).

 

    

 

     This means that relatively much less is spent on food in Germany than in Lithuania. And this is mainly due to differences in salary levels. Currently, the average salary in Germany is about 4 thousand. EUR before taxes, while in Lithuania it is half as much - 2 thousand. euros.

 

    

 

     Polish neighbors are in 28th place on the list, in terms of spending on food per month 128 euros or about 40 percent less than Lithuanians.

 

 

Latvians (23rd place) spend 164 euros on food, Estonians (14th place) 197 euros."