3 ms·

> Also notice that some of these countries have higher or similar GDP per capita to USA. In the US, households have 10% more money than the second closest comp

by tomp 5y ago

> Also notice that some of these countries have higher or similar GDP per capita to USA. In the US, households have 10% more money than the second closest competitor (Luxembourg), and 20% more money than next closest (Germany & Switzerland). I think that's a much better comparison than GDP (which isn't necessarily connected with employment), and shows how these tradeoffs work. https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income https://en.wikipedia.org/wiki/Disposable_household_and_per_c... https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income https://en.wikipedia.org/wiki/Disposable_household_and_per_c...

Clubber 5y ago
You're looking at the mean which includes billionaire disposable income. Look at the median for a more realistic picture (scroll down 1 grid).
- tomp 5y ago
  I doubt many billionaires have income. Although you're partially right, I'm not sure which is a better metric. Probably depends on where in the distribution you are (above or below the median).
  - Clubber 5y ago
    >I doubt many billionaires have income. Realized capital gains, dividend income, income on rents. I'm not sure how the calculate disposable income. If I have 200M in stock that I could sell, is that considered disposable income? If I earn 2M in dividends that I reinvest, is that considered disposable?
  - baq 5y ago
    for this exercise, I'd consider 'loans against equity' to be disposable income.
ivan_gammel 5y ago
In Germany a person with median income will have access to free healthcare and education, good public transportation system and maybe even to an apartment with controlled rent. After you subtract all those expenses you may find that people in Germany may have more money in the pocket than in the USA. Anecdotal evidence does not prove anything, but few Americans who moved to Berlin were actually telling me that despite lower income and higher taxes they have more money here.

by tomp 5y ago

Clubber 5y ago

You're looking at the mean which includes billionaire disposable income. Look at the median for a more realistic picture (scroll down 1 grid).

tomp 5y ago
I doubt many billionaires have income. Although you're partially right, I'm not sure which is a better metric. Probably depends on where in the distribution you are (above or below the median).
- Clubber 5y ago
  >I doubt many billionaires have income. Realized capital gains, dividend income, income on rents. I'm not sure how the calculate disposable income. If I have 200M in stock that I could sell, is that considered disposable income? If I earn 2M in dividends that I reinvest, is that considered disposable?
- baq 5y ago
  for this exercise, I'd consider 'loans against equity' to be disposable income.

ivan_gammel 5y ago

In Germany a person with median income will have access to free healthcare and education, good public transportation system and maybe even to an apartment with controlled rent. After you subtract all those expenses you may find that people in Germany may have more money in the pocket than in the USA. Anecdotal evidence does not prove anything, but few Americans who moved to Berlin were actually telling me that despite lower income and higher taxes they have more money here.