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This is overall a comparison of "Purchasing Power Parity" which suffers from a few gotchas. One thing that complicates this is the value of services provided '
by droopyEyelids 5y ago
This is overall a comparison of "Purchasing Power Parity" which suffers from a few gotchas.
One thing that complicates this is the value of services provided 'for free' by a person's government. The average citizen of the USA lives on $75 per day, but might use another $10 per day of interstate highways paid for by the government - something the citizen of Burundi doesn't get.
Likewise, the Danish citizen lives on $50 a day, but may be receiving a free college education and healthcare while the US citizen spends a substantial fraction of their income on those two.
If you're interested, here is a succinct write-up of the phenomenon https://mattbruenig.com/2021/12/08/how-to-compare-incomes-across-countries/ https://mattbruenig.com/2021/12/08/how-to-compare-incomes-ac...
- dahfizz 5y agoThis is only a problem when comparing _disposable_ income PPP, because disposable income has taxes deducted. Disposable income data is harder to collect, and is therefore less common. This article uses average income (GDP per capita), which compares pre-tax money. The $10/day value that a US citizen gains from the roads was paid for out of that average income.