[pg314]

> An iPhone or a Toyota Corolla costs the same in the US as it does in China.

A maxed out iPhone costs RMB 13999 in China, which is about USD 1925. The same iPhone costs USD 1599 in the US. In Brazil it costs the equivalent of USD 2565. PPP is still very much relevant.

[losvedir]

That's the opposite of how PPP usually works. Purchasing Power Parity means that although you earn much less in China, things also cost less, so your cost of living and relative wealth are the same.

So PPP usually is a boost to the poorer countries. The post you're responding to claims that this is less and less relevant because the things they want to buy are global in nature. The fact that these things cost more actually reinforces that point.

[bluGill]

You often are better off in poorer countries anyway even if some goods cost more. My coworkers in India have servants that clean their house every day - I make more $$ than them by a bit but I could not afford that and so I personally have to spend a few hours in cleaning every week and my house isn't as clean (because I'm spending less time cleaning)

[dtquad]

Each country has their own misleading way of calculating PPP. Some probably include the iPhone price.

PPP is useless misleading nonsense.

[roncesvalles]

Shouldn't it cost less in China?

[Cumpiler69]

Why?