Re:The Poorest 20% of Americans Are Richer on Average Than M...
by JAlexoid on Monday August 26, 2019 @05:51PM
(#20804146)
"Thus, an apple in one nation is counted the same as an apple in another."
Em.... Nope. That's factually incorrect. PPP is a metric for overall currency value, not apples to apples comparison.
If you wish to point out apples - the cheapest retail apples I can buy in NY is $3.21/kg, while retail price for apples in Germany is $1.94/kg. The apple PPP index is, anecdotally, 1.65.
The formal PPP index for Germany is 1.08, as in $1 buys you 8% more in Germany... that is factually untrue at the lower end of the income.
If you wish to point out apples - the cheapest retail apples I can buy in NY is $3.21/kg, while retail price for apples in Germany is $1.94/kg. The apple PPP index is, anecdotally, 1.65. The formal PPP index for Germany is 1.08, as in $1 buys you 8% more in Germany... that is factually untrue at the lower end of the income.