I found the perfect example to explain the difference between “GDP per capita” and “GDP per capita, PPP”.
Denmark vs Germany
We all know that Denmark has some of the highest salaries in the EU. But, as everybody who ever been there will be able to tell you, living there is also really expensive.
Within the EU: Luxembourg, Denmark and Ireland have some of the highest salaries. But what does that actually buy you? This is what PPP (Purchasing Power Parity) tries to answer.
But first, let me go one step back and quickly point out the obvious. Comparing the GDP (Gross Domestic Product) as a total over nations, especially with very different population numbers, isn’t going to be that useful in most of the cases. data source
The obvious solution is “GDP per Capita”, where one simply divide the GDP of a nation by the amount of people living there. This gives a very different picture indeed. data source
That doesn’t necessarily translates directly to salaries, but gives a very good example of what people there earn. It also does not say anything about how well that wealth is distribute between poor and rich, this is another topic for another day.
But have a look how far apart Denmark with a GDP per capita of $56k is from Germany with $44k.
But Denmark isn’t part of the EuroZone and, as mentioned, living there is noticeably more expensive.
What purchasing power parity does, is to look at how expensive some products are compared in $ USD to find out how much that money actually buys you. So what do you think, Germans or the Danish, who will get more for their salary? data source
Despite a 20% difference in salary, Germany and Denmark are almost identical.
So if you want to save a lot of money, Luxembourg and Ireland look a lot more attractive.
Money isn’t everything.
Despite that, Denmark and Germany usually ranks as one of the best places to live in the world. Typically ahead of both Luxembourg and Ireland.
See ONI Quality of Nationality Index
So what does that tell you?
If the accumulation of money is more important to you than the quality of life, you need to look at how much the cost of living is and not just the size of your pay-cheque.
Happiness isn’t about money or how expensive life is. It is a question of what you get for it. Not enough will guarantee misery, true. But after a certain threshold other factors start to become more important. Things like personal safety, a clean environment and being surrounded by other happy people is much more important than how big the balance on your current account is at the end of the month.
UK, Kantar Public poll:
European Union Membership Referendum
Remain: 55% (+1)
Leave: 45% (-1)
+/- vs. 4-8 April
— Europe Elects (@EuropeElects) April 25, 2019
Today marks the 21st anniversary of the #GoodFridayAgreement.
The EU has played a key role in supporting the peace process between the UK, the Republic of Ireland and Northern Ireland.
We supported the political framework and used our #CohesionPolicy for economic development. pic.twitter.com/oZqppKwfEn
— European Commission 🇪🇺 (@EU_Commission) April 10, 2019
Meanwhile, Shadow Scottish Secretary David Mundell also told the meeting that the Cabinet should be braced for Scottish first minister Nicola Sturgeon calling for a second independence referendum in the event of a chaotic Brexit.
One Cabinet source said: “The view was that a border poll in Northern Ireland was all-but inevitable if there is a no-deal Brexit because Sinn Fein would demand it straight away. The Secretary of State would have no choice but to call one.”
When future historians try to understand how Britain ended up with a choice between chaos and becoming a satellite of the European Union, one question will stump them. Were these people telling deliberate lies or were they merely staggeringly ignorant? Where does mendacity stop and idiocy begin? Historians generally have to assume that people in power have a basic grasp of what they are doing, that their actions are intentional. They may use deception as a tactic and they may be deluded in what they think they can achieve. But they must, at least at the beginning, have some grasp on reality – otherwise they would not have achieved power. Yet, for the poor historians trying to make sense of Brexit, this assumption will be mistaken.
Galway Christmas Market 2018❄
Nollaig shona dhuit!
We met today @DominicRaab and UK negotiating team. Despite intense efforts, some key issues are still open, including the backstop for IE/NI to avoid a hard border. I will debrief the EU27 and @Europarl_EN on the #Brexit negotiations.
— Michel Barnier (@MichelBarnier) October 14, 2018