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"Thus, an apple in one nation is counted the same as an apple in another." Em.... Nope. That's factually incorrect. PPP is a metric for overall currency value,
by JAlexoid 7y ago
"Thus, an apple in one nation is counted the same as an apple in another."
Em.... Nope. That's factually incorrect. PPP is a metric for overall currency value, not apples to apples comparison.
If you wish to point out apples - the cheapest retail apples I can buy in NY is $3.21/kg, while retail price for apples in Germany is $1.94/kg. The apple PPP index is, anecdotally, 1.65.
The formal PPP index for Germany is 1.08, as in $1 buys you 8% more in Germany... that is factually untrue at the lower end of the income.