5 ms·

GDP alone means little to nothing, should be actually compared to the purchase parity power. In that regards Russia is not that bad: https://en.m.wikipedia.org

GDP alone means little to nothing, should be actually compared to the purchase parity power. In that regards Russia is not that bad: https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP) https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(PP... But of course this affect the way you see at numbers on an absolute value

Andrew_nenakhov 5y ago
> In that regards Russia is not that bad Was not that bad.
- ausudhz 5y ago
  Is still the case actually, if they only consume non-imported goods they won't see the difference that much. They have been outside of the global economy for decades during the cold war, they definitely know how to decouple. The problem is that this world is different than the previous one
dillondoyle 5y ago
Interesting I didn't know that term. That would definitely take more into account the size of their consumer market instead of Russia's being mostly state or oligarch owned extraction businesses. But I think on the other hand also still shows the relative value? Like say for example - numbers not real. If the purchasing power needed to buy one shirt in RU is $10, and $30 in US, than the max amount of ad profit would be in line with those profit margins. So FB can charge more for a buy my shirt ad in the US, because the ad buyer can spend more in real $ terms
- ausudhz 5y ago
  Yes I mean overall, probably when you look at margins and % you should see same outcome from a company in the same industry But depends, if you use goods and services from foreign countries that affect also that aspect. This is how is calculated btw: https://www.worldbank.org/en/programs/icp/brief/methodology-calculation#i.%20Elementary%20PPP%20calculation https://www.worldbank.org/en/programs/icp/brief/methodology-...
mahkeiro 5y ago
Thing is that PPP is only for basic stuff (food, energy), and not tech stuff. A phone in Russia is not cheaper, and in fact all the imported goods are not cheaper.
- ausudhz 5y ago
  Depends what phone. if you're importing it yes, is not cheaper. If is a local brand most likely yes. Also what you say is not even true > Elementary PPP calculation The PPP estimation process begins with the participating economies collecting prices for items chosen from a common list of precisely defined items. These common lists include both regional items, priced in a specific region, as well as global items, priced in all ICP regions. These two sets of prices cover the whole range of final goods and services included in GDP: household consumption expenditures, government consumption expenditures, and gross capital formation expenditures. https://www.worldbank.org/en/programs/icp/brief/methodology-calculation#i.%20Elementary%20PPP%20calculation https://www.worldbank.org/en/programs/icp/brief/methodology-...
  - mahkeiro 5y ago
    Of course it contains global stuff but the weight of these are rather small in the basket of goods. First will come, basic necessities, housing, health, etc.

Andrew_nenakhov 5y ago

> In that regards Russia is not that bad Was not that bad.

ausudhz 5y ago
Is still the case actually, if they only consume non-imported goods they won't see the difference that much. They have been outside of the global economy for decades during the cold war, they definitely know how to decouple. The problem is that this world is different than the previous one

dillondoyle 5y ago

Interesting I didn't know that term. That would definitely take more into account the size of their consumer market instead of Russia's being mostly state or oligarch owned extraction businesses. But I think on the other hand also still shows the relative value? Like say for example - numbers not real. If the purchasing power needed to buy one shirt in RU is $10, and $30 in US, than the max amount of ad profit would be in line with those profit margins. So FB can charge more for a buy my shirt ad in the US, because the ad buyer can spend more in real $ terms

ausudhz 5y ago
Yes I mean overall, probably when you look at margins and % you should see same outcome from a company in the same industry But depends, if you use goods and services from foreign countries that affect also that aspect. This is how is calculated btw: https://www.worldbank.org/en/programs/icp/brief/methodology-calculation#i.%20Elementary%20PPP%20calculation https://www.worldbank.org/en/programs/icp/brief/methodology-...

mahkeiro 5y ago

Thing is that PPP is only for basic stuff (food, energy), and not tech stuff. A phone in Russia is not cheaper, and in fact all the imported goods are not cheaper.

ausudhz 5y ago
Depends what phone. if you're importing it yes, is not cheaper. If is a local brand most likely yes. Also what you say is not even true > Elementary PPP calculation The PPP estimation process begins with the participating economies collecting prices for items chosen from a common list of precisely defined items. These common lists include both regional items, priced in a specific region, as well as global items, priced in all ICP regions. These two sets of prices cover the whole range of final goods and services included in GDP: household consumption expenditures, government consumption expenditures, and gross capital formation expenditures. https://www.worldbank.org/en/programs/icp/brief/methodology-calculation#i.%20Elementary%20PPP%20calculation https://www.worldbank.org/en/programs/icp/brief/methodology-...
- mahkeiro 5y ago
  Of course it contains global stuff but the weight of these are rather small in the basket of goods. First will come, basic necessities, housing, health, etc.