ACCUMULATING PERIPHERALS


You don’t buy stuff from other countries with PPP-adjusted dollars by mattsteinglass
December 3, 2008, 7:19 pm
Filed under: Development, Economics, Family, Gender

Matthew Yglesias notes that the $25,000 Alex Kuczynski (hi there Alex) paid the surrogate mother of her child is

a decent chunk of change in the United States but over six times per capita GDP in India.

I believe he must be looking at purchasing power parity-adjusted per capita GDP. In flat-out exchange rate dollars, per capita GDP in India is nowhere near $4,000 a year. If you handed someone in India $25,000 it would actually be a lot more than 6 times their per capita GDP (more than 25 times, I think) which means the prospect of carring babies for wealthy Westerners is even more attractive (and will continue to be so for a long time unless there’s a seismic shift in the world economy that collapses the value of Western currencies relative to the rupee).

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