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I'd like some kind of standard metric that adjusts gdp to spending power on food, housing etc, and weights based on standard deviation amongst the populace (low
by p1necone 7y ago
I'd like some kind of standard metric that adjusts gdp to spending power on food, housing etc, and weights based on standard deviation amongst the populace (lower being better).
Unadjusted gdp seems like an entirely pointless metric when as you point out you can look at places like the USA where despite having high gdp there's still widespread poverty.
- abakker 7y agoThe metric you are looking for is Purchasing Power Parity - https://en.wikipedia.org/wiki/Purchasing_power_parity https://en.wikipedia.org/wiki/Purchasing_power_parity
- sgnelson 7y agoAnd also the Big Mac Index. https://www.economist.com/news/2019/07/10/the-big-mac-index https://www.economist.com/news/2019/07/10/the-big-mac-index https://en.wikipedia.org/wiki/Big_Mac_Index https://en.wikipedia.org/wiki/Big_Mac_Index
- ska 7y agoStandard deviation of what, wealth? Income? You're on the right track though, at minimum you need to use something like purschasing power parity (PPP) to account for some effects, and wealth distribution to account for others. Doing these comparisons meaningfully isn't easy to get right.