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im no economist, but i cant help but feel thereis a huge flaw with PPP comparisons between first and third world countries. if someone made $0.08/hr in the US,
by leeoniya 13y ago
im no economist, but i cant help but feel thereis a huge flaw with PPP comparisons between first and third world countries.
if someone made $0.08/hr in the US, they would starve. homeless people make a lot more than this in the states. but somehow, people manage to raise whole families on those wages in third world countries. what am i missing?
- matchu 13y agoI think that's exactly what PPP is about, though: income is converted to how much you have the power to purchase, so it's designed specifically to equalize that comparison. Or maybe I'm misreading.
- a3n 13y agoYou're missing the forest for the trees. It's an awareness tool, not an economic analysis.
- leeoniya 13y agothe tool does count trees though. i find it relevant to discuss whether it counts 1e2 trees or 1e6, or a seemingly unsurvivable wage with one that in reality sustains families.