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You have it backwards. Mississippi residents earn more than UK ones at current $/£ exchange rates, but the costs of goods and services in Mississippi are so muc
by Arnt 2y ago
You have it backwards. Mississippi residents earn more than UK ones at current $/£ exchange rates, but the costs of goods and services in Mississippi are so much higher than in the UK that once you include that difference in your comparison, the relationship flips.
- starspangled 2y agoI'm quoting the article. "Things cost more in the U.K. than in Mississippi"
- Arnt 2y agoThings imported from a third country, such as China, sort of cost more. PPP is strongly affected by the cost of locally grown potatoes, locally made milk, locally performed plumbing repairts. PPP is about adjusting exchange rates to keep "cost of one plumber hour" fixed across several countries, the cost of buying USB sticks made in China is kind of then "more expensive" in a country where the cost of getting a plumber of otherwise "low", with both "more expensive" and "low" a matter of definition. Both plumbers' rates and USB sticks flow into the calculations, of course. The previous paragraph is simplified.
- starspangled 2y agoI think the article just got a bit muddled.