Quote:
Originally Posted by Baraka_Guru
Consider how well known it is in the U.S. that there is a great disparity of wealth. Now consider that the ratio of the top 20% of earners vs. the bottom 20% of earners is greater in China than it is in the U.S. (12.2 vs. 8.4). Even the U.N. has data that shows income inequality as being worse in China.
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Measuring living standards by using income can often be misleading.
For example, in order to heat a home in some climates in urban centers, it may require a furnace, meeting code, the cost could be thousands of dollars including installation - allocating those costs over the life of the furnace and the fuel either electricity or natural gas could cost a family in the US $200/$300 per month - we need to net that income to heat our homes. In order to net that amount one may have to earn or have income, @ a 30% tax rate, $260/$390 per month. In an area where a home made wood furnace is used with local materials and fuel collected from local sources using individual labor - the income required to heat a home is $0. The same applies to others examples as well - so it is clear we have to look beyond just income numbers especially when comparing different cultures or countries. Perhaps an easier understood example would be transportation. If a suburban commuter is spending $1,000 per month to get to and from work - when comparing real net income, don't you think we have to adjust for that when comparing it to people of a different culture where the structure of transportation is different or even the urban dweller that can walk to work?
To me it is funny how some people here look at freedom or choice. Sure we can go to our local grocer and select from 50 different varieties of spaghetti sauce, but does that mean we actually have more freedom or more choice? If the answer is yes, does it have any meaning in terms of the quality of life or our living standards?