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Why would you adjust the price by the GDP? When people ask if a product costs more in a different country they don’t mean relative to the countries industrial
by jdsully 5y ago
Why would you adjust the price by the GDP? When people ask if a product costs more in a different country they don’t mean relative to the countries industrial output. Median income might be a better ratio for this but GDP makes little sense.
- wizzwizz4 5y agoBecause they mean price for normal people, not price for international traders. Money can be exchanged for goods and services; the value of your money is not how much rice it can buy in Uganda or how much paper it can buy in Kazakhstan if you live in Denmark.
- jdsully 5y agoAgain comparing with the median wage is more appropriate if that is your goal. GDP does not have a direct connection to what the average person earns - much of the GDP gains over the last 30 years have gone to the rich.
- wizzwizz4 5y agoTrue. Really, it should be compared to a standard basket, or maybe equivalent meals?