Introduction
Buying popular consumer goods such as a smartphone or a car can be a significant financial commitment for many individuals. In this article, we will explore how much work it takes for typical consumers to earn enough to buy an iPhone 11 Max Pro and a 2020 RAV4 in different parts of the world. We will specifically focus on the cost of living and economic disparities by comparing the situation in the United States and Iran.
The iPhone 11 Max Pro in the United States
Typical Cost: The iPhone 11 Max Pro, when purchased with the most basic plan, typically costs around $1,099. Earnings without taxes and after taxes can vary significantly based on the person's hourly wage.
Estimating Work Hours: For example, if a person earns $20 per hour, it would take approximately 55 hours of work (about 7 days) to earn the price of an iPhone 11 Max Pro. This calculation includes both income tax and sales tax, which can vary depending on the state or local jurisdiction.
The iPhone 11 Max Pro in Iran
Typical Cost: The cost of an iPhone 11 Max Pro in Iran can be significantly higher due to factors such as currency exchange rates, additional taxes, and import duties. A rough estimate might place the price at around $1,400 locally, or more when all taxes and duties are factored in.
Estimating Work Hours: In Iran, a middle-class individual earning an average salary of around 500,000 Iranian Rials per month (approximately $1,500 USD at the official exchange rate) would need to work approximately 5-6 months to afford an iPhone 11 Max Pro. This calculation incorporates all relevant income and sales taxes as well as the local cost of living.
The 2020 RAV4 in the United States
Typical Cost: The base price of a 2020 RAV4 is around $27,000. Without additional features, this vehicle can be purchased relatively quickly with a middle-class income.
Estimating Work Hours: For someone earning $20 per hour, it would take approximately 1,350 hours of work (about 180 days) to earn the full price of the car. This calculation includes income tax and sales tax, but not interest or additional fees that might be incurred with financing.
The 2020 RAV4 in Iran
Typical Cost: The cost of a 2020 RAV4 in Iran is comparable to or slightly higher than in other developed markets. However, the financial reality is significantly different due to higher import duties and taxes.
Estimating Work Hours: In Iran, the cost would be higher, potentially around 100 million Iranian Rials (approximately $30,000 USD), meaning a middle-class worker would need to work 23 years to afford it. This includes all relevant taxes, duties, and the local cost of living.
Conclusion
The significant difference in the cost of living between the US and Iran highlights the stark economic disparities that exist. In the US, a middle-class worker can afford both the iPhone 11 Max Pro and a RAV4 within a reasonable timeframe considering the local cost of living, income taxes, and sales taxes. In contrast, in Iran, the same middle-class worker would face prohibitive costs and longer working periods, emphasizing the importance of understanding local economic conditions when budgeting for large purchases.
Understanding these differences is crucial for consumers making significant financial decisions, especially when considering international markets. Local experts and professionals can offer invaluable insights into specific cost and tax considerations for both the goods and the local economy. By educating oneself on these factors, individuals can make more informed and financially sound decisions that align with their current and future income.