tptaceck writes: "But a 44-year-old schoolteacher might not care about those things."
That is the problem with PPP - it depends on making hundreds of such subjective valuations, all of which defy the actual market value of the currencies of the various countries. Why not simply compare the standard-of-living of 2 countries using the fair market value of the currencies?
I think such an honest approach is unpopular in the US because such an approach shows how much the US has declined over the last 40 years, relative to other nations.
Comments
tptaceck writes: "But a 44-year-old schoolteacher might not care about those things."
That is the problem with PPP - it depends on making hundreds of such subjective valuations, all of which defy the actual market value of the currencies of the various countries. Why not simply compare the standard-of-living of 2 countries using the fair market value of the currencies?
I think such an honest approach is unpopular in the US because such an approach shows how much the US has declined over the last 40 years, relative to other nations.