Taiwan’s purchasing power per capita has surpassed that of the United States.
Taiwan’s purchasing power per capita has surpassed that of the United States.
https://i.redd.it/mznsyge20jyg1.png
Posted by this0great
1 Comment
Careless-Pin-2852 on
I find PPP be a misleading term.
Here is why
They say dollars but it is not dollars. It is a number but what is in that number.
Americans and Taiwanese buy very different things. For example Boba is popular in the USA but it is speciality fun item sold at speciality shops so of course Boba is more expensive in the USA than Taiwan.
PPP is can be useful for determining if a currency is over or undervalued.
But here is my problem the way goods are weighted the Dollar has never in 40 years been see as under valued. The dollar has at times been under valued in the last 40 years it has gone up it has gone down. So that seams like they are weighing prices in the US incorrectly and won’t change.
I find comparing consistent things people buy in both places more useful. Like rice grain electricity gasoline or the silly big Mac index the Economist puts out.
1 Comment
I find PPP be a misleading term.
Here is why
They say dollars but it is not dollars. It is a number but what is in that number.
Americans and Taiwanese buy very different things. For example Boba is popular in the USA but it is speciality fun item sold at speciality shops so of course Boba is more expensive in the USA than Taiwan.
PPP is can be useful for determining if a currency is over or undervalued.
But here is my problem the way goods are weighted the Dollar has never in 40 years been see as under valued. The dollar has at times been under valued in the last 40 years it has gone up it has gone down. So that seams like they are weighing prices in the US incorrectly and won’t change.
I find comparing consistent things people buy in both places more useful. Like rice grain electricity gasoline or the silly big Mac index the Economist puts out.