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Doesn't it seem like this analysis is done completely incorrectly? You can't directly compare two indices together that are based on different magnitudes (cost
by estreeper 14y ago
Doesn't it seem like this analysis is done completely incorrectly? You can't directly compare two indices together that are based on different magnitudes (cost of living vs. salary).
If average cost of living in absolute dollars is $30,000 and average salary is $100,000, living in San Francisco nets you ($100,000 * 1.36) - ($30,000 * 1.63) = $87,100. Living in Pueblo nets you ($100,000 * 0.76) - ($30,000 * 0.88) = $49,600.
I'm afraid this will spark an unnecessary mass-exodus to Pueblo.