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You're getting somewhat blinded by two things:
1. cost of living for the majority of the country is WAY under what you pay on the coasts. In small towns and suburbs in Iowa for example, you can buy a house for 15k or less. Not a great house, but with TV, phone, crappy old car.....you are STILL way above 80% of the worlds standard of living.
2. There is no telling WHAT the methodology of this statistic was. I studied statistics, and you can make the same set of facts say totally opposite things with statistics that are grouped and worded just the right way.
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