Tag Archives: Gross domestic product

07Jul/23

How holidaying in developing countries affects local inequality

A few years ago, one of us (Alex) went for a vacation to the Dominican Republic. The motivation was similar to millions of other tourists every year: escape the daily routine, enjoy the sun and beaches, and gather some strength to face another cold winter.

Unfortunately, a few things weren’t very conducive to a happy break. The staff at the mammoth hotel were making as little as US$1 (£0.79) for a 12-hour shift. Worse, most of them lived in a shanty town nearby. They had no sewers and no reliable electricity.

The hotel also exploited its power over local farmers to procure food exceedingly cheaply. Schools were overcrowded and many children dropped out to work in businesses like these hotels and farms, perpetuating the cycle.

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17Apr/23

Reasons why Purchasing-power parity is a better metric for comparing people’s well-being than Exchange rates

April 17, 2023 /Economy/ — Purchasing-power parity (PPP) is a measure of the value of different currencies, taking into account the cost of living in different countries. It is often used to compare the standard of living in different countries.

Exchange rates, on the other hand, are the prices of one currency in terms of another. They are determined by supply and demand in the foreign exchange market.

There are a few reasons why PPP is a better metric for comparing people’s well-being than exchange rates. Continue reading