Reply to GDP, average wealth and median wealth

Forum Index » Money and Finances

Reply to "GDP, average wealth and median wealth - what do these tell me?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Americans produce more on average than Australians.

The total wealth in each country divided by their respective populations is roughly the same.

There is a more distributed pattern of wealth in Australia. There are more ultra-wealthy in the USA.[/quote]

If the US produces more than Australia, why isn’t the wealth per capita higher? Is there not really a correlation?[/quote]

Looking into this, it seems like the "average wealthy by household" is calculated by totaling the wealth held by households, and dividing it by the number if households.

If this is the number you are using, then it would seem like the following things would lead to this situation (note: I have no idea if any of these things are true for Australia and the US)

1) Since wealth held by non US shareholders wouldn't be included in this calculation, some of the wealth held by US corporations isn't factored in.

2) If one country has a higher percentage of households with 2 adults, whether due to higher marriage rates, lower divorce rates, young adults staying dependent longer, etc . . . that country would see higher income per household, with the same total household wealth per population.

3) If citizens of one country have higher debt than the citizens of the other country, including medical debt as an example of a situation where US residents are at a disadvantage, then would reflect in lower wealth on this measure.

Now, I realize OP didn't say "by household".  If it's "by adult" then 1 and 3 still apply.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics