you are viewing a single comment's thread
view the rest of the comments
[–] 2 points 1 week ago (1 child)

GDP is absolute values, so there's quite a bit of self reinforcement. Especially in service heavy areas, your massage cost 30$ for half an hour, elsewhere you can get a better one for 10$ an hour.

Although the second economy delivered twice the goods at a higher quality, the economic output was 1/3rd

  • source
  • parent
  • hideshow 2 child comments
  • [–] 1 point 1 week ago

    Yes, it gets called a "litmus test". If it's higher you can be reasonably sure whatever place is richer (although banking hubs break that a bit). It itself doesn't correspond to that more than empirically, though.

  • source
  • parent