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I have always wondered to what extent GDP (price-adjusted or not) reflects standard of living. By different sources, GDP per capita for Britain is only 60% that
by fhe 3y ago
I have always wondered to what extent GDP (price-adjusted or not) reflects standard of living. By different sources, GDP per capita for Britain is only 60% that of the US, but visiting these two countries I don't see much of a difference in standard of living.
- jltsiren 3y agoIf you make $50k/year and work for living, you are probably middle class. If you make $250k/year and work for living, you are probably still middle class. That's more or less the same thing. Differences in income have a surprisingly small effect on quality of life. If you make more money, you can still afford the same luxuries. Just more of them and more often. You are likely buying bigger and better versions of fundamentally the same things. You probably spend your money less efficiently, buying all kinds of minor conveniences. And if everyone around you makes more money, your expectations go up, and your spending will be even less efficient.