Quote:
|
Originally Posted by MetroPornTour
GDP, etc has no effect on standard of living or how many people die of starvation.
|
First of all, the type of GDP he was referring to (probably without knowing it, but that doesn't matter) was PPP, or Purchasing Power Parity, rather than nominal. PPP is a term which has explicitly been conceived to compare standard of living rather than pure financial wealth. PPP takes into account both differences in wages as well as differences in costs of living.
So, yes, GDP per capita in terms of PPP actually does have an effect on standard of living. In fact, it's exactly what it describes.