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Neither measure what you can buy. GDP isn't distributed evenly. PPP doesn't effect the distribution. It's just an adjustment. An oil state like Russia has a d
by onlyrealcuzzo 3y ago
Neither measure what you can buy.
GDP isn't distributed evenly. PPP doesn't effect the distribution. It's just an adjustment.
An oil state like Russia has a decent GDP, but the distribution is horrendous. It doesn't matter if you look at GDP or GDP PPP. Neither gives you a great picture "what you can buy" unless you're in the top 1%.
- HWR_14 3y agoNo one said GDP was distributed evenly. My point was PPP GDP is better than nominal GDP. IF you use median income, PPP median income is better than nominal median income.