"Shit economy"?
Some places a dollar goes far, that cannot be construed as 'shit economy'. The place where a $10 USA haircut costs $0.5 need not be due to local (bad) economic situation. Similarly for food and other living essentials.
Some places a dollar goes far, that cannot be construed as 'shit economy'. The place where a $10 USA haircut costs $0.5 need not be due to local (bad) economic situation. Similarly for food and other living essentials.
You're implying a strange causality.
The places with the highest PPP conversion factor are places like Colombia, Iran, Cambodia, Indonesia. The reason a dollar goes so far is because these places have no money. When controlling for PPP, 10% of the population of Cambodia lives on less than $2 per day.
So yeah, a dollar will go pretty far. And its because their economies are shit.
It is doing very fine. Thank you. https://www.marketwatch.com/story/indonesia-s-third-quarter-...
Since you are cherry picking examples, here are some more cherries. Countries where the amount of $ one needs to spend to get equivalent of $100 goods in USA:
Country $
------------
Turkey 36
Poland 52
Hungary 56
Mexico 56
Spain 84
Korea 88
Italy 89
Germany 95
Source: Wikipedia
First world countries:
Spain 84
Korea 88
Italy 89
Germany 95
All close to 100. Developing nations:
Turkey 36
Poland 52
Hungary 56
Mexico 56
Are all much lower. Seems like enough cherries to me to conclude that developing nations with weaker economies have a higher PPP adjustment.