Re:Goldman’s Blankfein on Skipping School Work, Wishing to B...
by TimPC on Sunday June 14, 2015 @01:00PM
(#9715547)
I'll disagree strongly here if the $80K and $4K are after tax. $40K in savings with an average life is highly preferable to $3K in savings with an average life. Yes there are smaller impacts to immediate choices, but I'd bet on the $40K to have a higher impact in the future. PPP is very sensitive to things like rapid economic growth, changes in immigration, changes in popularity of location, etc. You could very quickly find $3k/year of savings obliterated if that $1K goes to $4K. It's a lot harder for a $40K cost of living to go to $60K or $80K.
Re:Goldman’s Blankfein on Skipping School Work, Wishing to B...
by ucaetano on Sunday June 14, 2015 @01:14PM
(#9715603)
Make the 80k and 4k after tax :)
"$40K in savings with an average life is highly preferable to $3K in savings with an average life."
Your comparison is meaningless, unless they are in the same country with the same cost of living.
"You could very quickly find $3k/year of savings obliterated if that $1K goes to $4K. It's a lot harder for a $40K cost of living to go to $60K or $80K."
Again, meaningless, unless they are in the same country with the same cost of living.
That's what PPP is for.
Currency exchanges are meaningless when you're talking about quality of life and purchasing power, and PPP is meaningless when you're talking about total production.
On the other hand, you did the remarkable feat of using an example of when PPP is being used CORRECTLY (comparing purchasing power and quality of life per person) to argue against using it.
[Edit] Besides the PPP issue, I agree with the rest of your post, China is desperately looking for a way out of the demographic and political trap it dug itself into.