Comparing the size of countries’ economies is a popular sport, and a lot of people are very invested in the outcomes of those comparisons. For example, I
The funny part in this is PPP is how we set poverty benchmarks. When it’s poor people, the response is “Sure, someone in a low-income country can survive on the equivalent of $2.15 a day because the cost of living is lower!” As soon as that metric shows that China’s economy is doing better, everyone’s singing a different tune.
Alright, yes, they might have a house and plentiful food, clothing and entertainment, but have you considered that their currency trades poorly in the international money market?
The funny part in this is PPP is how we set poverty benchmarks. When it’s poor people, the response is “Sure, someone in a low-income country can survive on the equivalent of $2.15 a day because the cost of living is lower!” As soon as that metric shows that China’s economy is doing better, everyone’s singing a different tune.
Alright, yes, they might have a house and plentiful food, clothing and entertainment, but have you considered that their currency trades poorly in the international money market?
You gotta factor in the economic cost of not being able to easily afford a trip to see the Statue of Liberty!
It really does cut away the smoke and mirrors of the economy.