Comment by sofixa
15 days ago
GDP and GDP PPP are almost irrelevant with regards to personal wealth or lack thereof. A factory making billions to its owner doesn't improve the revenues, wealth or standard of living of more than 1 person. A factory producing luxury Louis Vuitton handbags is good for GDP and the wealth of the factory owner, but is irrelevant to the living conditions of the workers. A private equity firm making wild bets is very "productive", GDP wise, but again , entirely irrelevant at a personal level. Even the worker's salary is tough to compare in isolation between countries because of the vastly different costs of living - an American having to pay tens of thousands of student loans back, with obscene housing prices, absurdly expensive healthcare... $200k/year in San Francisco might not get you as far as e.g. 100€k/year in Berlin (throwing numbers for illustration, haven't actually done the math).
Come on, this is Econ 101 and basic logic.
> A factory making billions to its owner doesn't improve the revenues, wealth or standard of living of more than 1 person... A factory producing luxury Louis Vuitton handbags... is irrelevant to the living conditions of the workers
> Come on, this is Econ 101 and basic logic.
You griping about luxury goods on principle isn't "Econ 101" or "basic logic".
You can look at basically any material metric you like (cars owned, house size, etc.) and Americans come out ahead. Nominal GDP numbers are kind of nonsense, but they're directionally the same nonsense everywhere, so they actually work OK as an international comparison.
> You can look at basically any material metric you like (cars owned, house size, etc.) and Americans come out ahead
Rate of personal bankruptcies? Homeownership rate? Median household net wealth?
The amount of cars Americans have on absurd loans is entirely irrelevant to their personal wealth or lack thereof.
> The amount of cars Americans have on absurd loans is entirely irrelevant to their personal wealth or lack thereof.
The allocation of debt is essentially irrelevant - there are materially more, bigger, better cars per capita in the USA. Whether those cars get repo'd and transferred to richer Americans is irrelevant - you can't fake the material presence of more stuff.