Although the exchange rate is fluctuating, a currency of healthy economy won't keep depreciating or appreciating for long time. The longer the time, the smaller the impact of exchange rate.
That is something structural related and different to the argument.
I am talking about taking result of say 10% of your (USD base) activity and saying it represents the 100% (CNY production)...you tell me if that is not fraught with big assumptions/flaw compared to PPP which samples
all the 100% to make the final result?
Though Taiwan has a higher PPP than Japan, Germany, and Canada, Taiwanese themselves never believe they have better life than most old capitalist countries.
When did what people "believing" they have/dont have a better life enter into the argument? Thats a whole different topic to mere GDP per capita in first place....GDP per capita is somewhat correlated to quality of life, doesn't mean everyone of every single country is going to think or believe that.
That is where wealth distribution, socioeconomic development, perceived happiness etc etc and innumerable other factors enter into it (that vary from person to person, country to country in importance/relevance).
I am simply talking about GDP per capita here (comparing across boundaries, and the bad flaws in using one "world" currency to attempt it...given its simply not an absolute "world" currency)....
not perceived quality of life.
They import food from mainland, therefore their food prices are low.
So? Its all about what they consume physically relative to everyone else....it matters how they source it?
They consume few expensive goods.
That goes for every country in the world lol. You tell me what % of consumption in developed world is used for "expensive goods". The vast majority of consumption is regarding 4 things essentially: food, energy, housing, transport. Communications is getting up there, but long way to go still to challenge those 4 dominant ones by raw %. Expensive luxury goods (especially when annualised over life time appropriately) are small % in comparison.
The better way is not using PPP, but to compare the consumption of each commodities.
Oh my goodness. That is
EXACTLY what PPP does.
It literally aggregates physical quantities of same-quality goods (using an ICP sampling matrix) and brings to a standard reference (as Geralt pointed out, the international dollar).
Please Please read up on this first. Again
there is a reason why China expanded the 2011 ICP regimen, did you even read what I posted?
You tell me, if its not a "better way",
WHY did CPC allow comprehensive sampling for it compared to 2005? Could simply say its not a better way, no point, you World Bank people will not be allowed because its waste of time, just stick to the cities etc etc.
CPC
literally disagrees with you. So go take it up with them lol.
Food prices in poor country are bound to be low, and nationals of this poor country are incapable of consuming expensive goods.
Again if poor countries and rich countries basically have majority consumption in food, energy, housing, transport like I said (just different specific composition)....why is this an issue? You speaking to me as though poor countries with PPP have 50% or something signficant like that in PPP terms of Rich countries....they do not! Even China is around 25% in PPP terms to developed countries.
4 times less.
PPP is an inaccurate index tend to flatter the economies of poor countries, and make the gap between rich countries and poor countries look smaller.
A frankly very silly thing to say...after all I wrote here.
If PPP is an "inaccurate" index, GDP in USD is
totally rubbish then....as it extrapolates waaaay worse. (Still you are unable to pose a cogent argument on it).
A country can literally be exporting goods it itself does not internally consume all that much...and you are essentially claiming its fine to take that 10% (or whatever) and say the 100% is the exact same lol.
Bamboo dear, you should be better than this.
