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Jeremy Horpedahl: U.S. and Germany wealth gap overestimated in non-PPP data
Jeremy Horpedahl, industry influencer, challenges claims on relative economic wealth, noting surprise that non-PPP-adjusted IMF data was published by WSJ editors.
Horpedahl clarifies that while the U.S. is wealthier than Germany, the difference is not as large as $30,000 when proper purchasing power parity adjustments are made. He provides a PPP-adjusted chart for comparison in his analysis.
Horpedahl’s commentary adds to ongoing discussions of economic benchmarks noted by other analysts. Ramp Capital recently examined how the term paycheck-to-paycheck is interpreted differently among high-income earners in the U.S. compared to those earning above $200,000. Separately, an Idaho Economist observed that the state’s income tax revenue share has declined even as personal income more than doubled since 2014 in Idaho.
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