Treemap of World GDP by Purchasing Power Parity (PPP) 2020(treemap-world-economy.pages.dev) |
Treemap of World GDP by Purchasing Power Parity (PPP) 2020(treemap-world-economy.pages.dev) |
PPP-adjusted GDP per-capita gives an indication of the level of goods/services affordable by an individual citizen. Total GDP, unadjusted, is an indicator of a country's economic power. What does PPP-adjusted total GDP indicate?
To take a example that is currently of interest, Russia's ability to manufacture weapons is far greater than that if a country with the same nominal GDP but is closer to its PPP GDP (plus the effects of being more self sufficient than most countries other than the big two).
I agree. As I commented recently here, we should also normalize by total hours worked. People in the US work much more than in many other countries.
I guess one use of total GDP adj. b. PPP would be when countries negotiate something. Then, China would have a strong argument for setting terms.
Depends on what you want to compare.
If you want to understand the "heft" of the country in terms of the sheer size of the economy (adjusted for exchange rates) then you do country GDP on PPP basis.
If you want to understand the size taking into account currency rates then you do plain GDP.
If you want to understand how well off a citizen is THEN you do per-capita GDP.
When countries play on the world stage for influence, their overall heft i.e. total GDP (whether on a PPP basis or not) is essentially the main determinant.
The treemap shows how global total purchasing power is divided between countries.
A treemap of GDP PPP per capita would show the breakdown of purchasing power if you put one citizen of each country in a single room. I think a bar chart would be a better choice in that case.
If you plot in terms of PPP GDP, other counties suddenly appear much smoother.[1]
0. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?location...
1. https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locat...
Assuming India as a Commonwealth country counts in Oceania, that leaves Indonesia as the largest "Disputed Territories" member on this graph...
I don't think anyone here believes China is ahead in terms of average standard of living. This graphic is just about the overall size of the economy.
In case of adverse currency move, EU, Russia and China may still produce as much stuff (taken together they produce all of the components, whose effective price unchanged), but their US competitors are all undercut on price. They'll consume a bit less for the duration, though.
It all depends on how it's produced in China and also what's the marketing and the price positioning. It probably can get away with higher price by positioning itself as an exotic brand.
You could ask the same for North Korea, is a Big Mac really the same product over there than in Alabama ?
I wonder how they come up with a common ground between Kuwait and Mexico, it feels incredibly easy to manipulate from the source.
So that's where you look first.
But eating out, getting education, child care costs and foremost real estate, are all deeply PPP corrected.
Even that holds only true if all other things are equal. But low PPP countries are strongly correlated with less industrialization, less educated workforce etc. That's why most (low-PPP) countries, even large ones, don't produce their own jets - it's cheaper to buy them.
> Most of that is in trade currency, so no PPP adjustment.
It's non-trivial to make that cut. I'd say things PPP for stuff like food doesn't count, but PPP for even rather basic industrial products already does.
You could be paying thousands of dollars to get your Big Mac in PyongYang, so technically it's available there, and PyongYand residents can there be declared as crazy rich on the PPP scale.
Same way if the measure was Toppogi it would be dirt cheap in PyongYang and Seoul but crazy expensive in Guatemala with one single shop offering it as a delicacy.
That's why difference exists in the first place - because of power imbalance driven by different levels of technological progress.
( I live in New Orleans, 35% of kids don’t have enough calories per days to have a proper brain development. And New Orleans is fine compared to the rest or Louisiana )
Source? I find that hard to believe, considering how cheap and plentiful calories are and how numerous the various public assistance programs exist relating to feeding the poor.
My bad for the figure, I had a third in mind. It’s less. Can’t find a general population figure in the short amount of time. 20 ish % of black kids is enough or it’s fine ?
Source :
https://www.cpex.org/blog/stateofhunger
What was eye opening to me was volonteering in a random school. And noticing how the breakfast was a important and respected steps. Like.. not everyone had dinner last night.
Oh well, right ?
And you have it backwards. Louisiana has a problem with an overabundance of calories, not a lack of calories. Louisiana is one of most obese states in the country after all.
https://www.cdc.gov/obesity/data/prevalence-maps.html
There are legitimate issues with economic disparity in the country. Not sure why you are trying to tie it to calories?
Looking up what I had in mind the proper way to reference it is “food insecurity”
Source :
https://www.cpex.org/blog/stateofhunger
Or “no kid hungry Louisiana”, that the one I noticed here. Giving breakfast out in school. My first reaction was to wonder why. Digging I realized that a fair amount of kids were coming to school on a empty belly.
That’s it.
Also “been to New Orleans” is a funny statement! Congratulations on seeing Jackson square and the French quarter. It’s a city, not 10 historical blocks.
> 35% of kids don’t have enough calories per days to have a proper brain development.
Utter nonsense.
Yet, I never seen that much poverty before moving here. I guess it’s just more visible.
Gini index would be a good addition to your figures.
Regarding a third of kids being hungry on a regular basis. I had it wrong indeed. It’s more 20% of black kids. Wee!
Neither your anecdata on "visible poverty" nor the US Gini index contradict the obvious fact that the USA is, by any serious measure, a rich country.
It truly makes me feel better.
I should do the same exercise you did with Swiss data. That what come to my personal mind when I think of “rich country” not the lower 9th ward, or New Orleans East.
But since the US is rich like demonstrated.
I should actively start to reframe those place into “rich”. And look more at all those fat people in the street.