Time for a change in the way we look at economics.

[Cujo]

China’s per-capita income, at around $6,600, is closer to that of Turkmenistan or El Salvador, rather than to the U.S.’s $46,000 or even Japan’s $33,000.

I don't claim to be an economist, but I believe the way ecomomies are measured is wrong.
Take the above for example, or the oft cited figures workers are paid in developing countries. (gasp shock horror, they only get $1.00 a day) but that dollars buys their vegetables rice and shoes etc.
$1.00 means a lot more here than there.
The figuire quoted above is actually pretty much right on average, there are a LOT of people making more, some a LOT more, and a lot of people making less, a LOT less, but that figure would be perfectly liveable unless you were living in the middle of a major city, so what's the problem?
Why compare the per capita income in China with that in the US when the cost of living is so different? (although I must say things are definitely getting more expensive).
So why are ecomomies measured in much the same way.
To say this country or that has a stronger economy based on the USD is utterly pointless.
There must be a better way to measure how much domestic economic activity there is in a country.
Think about it this way. In a country with a strong currency (relative to the USD)
area guy from the village buys a localyh made wheel barrow for the equivalent of $50.00.

In another village in another country with a weaker currency guy spends $25.00 (equivalent) on the wheelbarrow, $10.00 on a pair of shoes and the whole village collectively spends $14 on rice.

Now although there is much more economic activity in the second village the first village is deemed to have a stronger economy because the GDP of that village for the week was higher than the second.
I'm sure the economically minded among us will tear this to shreds in short order, but I think there needs to be a better more even way to calculate countries economic activity other than converting to the USD and comparing.

[wefearourdespot]

There must be a better way to measure how much domestic economic activity there is in a country.

Purchasing power parity - Wikipedia, the free encyclopedia
It's already used in per capita GDP figures , for example this site states it both USD at current exchange rate and in USD PPP corrected Thailand Economic Statistics, Thailand Economic Indicators for the Year 2009

[Butterfly]

There must be a better way to measure how much domestic economic activity there is in a country.

it's a hot topic in economics academics, the biased measurement we have come directly from poor statistics we have to deal with, namely the massive info we have to source from and its classification. There is also the issue of "seasonality" and "adjustment" to reflect economic reality, not "time reality"

between actual output measurements from government agencies, and Costs or Value Added methodology measurements, not one of those measures are capable to give us an accurate reflection of our economy. They all have to be interpreted or adjusted.

PPP doesn't come with no problem either. The difference in consumption patterns between countries make comparison difficult and often biased.

[noelbino]

When we get to that place above us when we die, the first question will be: What would you like to be revealed My son?

I didn't understand economics, can you explain it?

Simple, my Son: We don't either.

[Rural Surin]

There must be a better way to measure how much domestic economic activity there is in a country.

it's a hot topic in economics academics, the biased measurement we have come directly from poor statistics we have to deal with, namely the massive info we have to source from and its classification. There is also the issue of "seasonality" and "adjustment" to reflect economic reality, not "time reality"

between actual output measurements from government agencies, and Costs or Value Added methodology measurements, not one of those measures are capable to give us an accurate reflection of our economy. They all have to be interpreted or adjusted.

PPP doesn't come with no problem either. The difference in consumption patterns between countries make comparison difficult and often biased.

Such economic 'realities' might might achieve a higher reflection by looking upon real wealth and value - which, of course, there is none. Modern economies are principally founded and base on illusion {nothing up my sleeve} and shear fantasy as a reflective vision.

[Butterfly]

you are projecting RS, that's not a philosophical issue

the question is that wealth and output can't be measured accurately, which means the current number might understates or overstate the reality of things

in some cases, the actual wealth of a country might be under reported

[Rural Surin]

you are projecting RS, that's not a philosophical issue

the question is that wealth and output can't be measured accurately, which means the current number might understates or overstate the reality of things

in some cases, the actual wealth of a country might be under reported

OK. I could even go along with that. Even when you come across as an apologist for convention. Fair go!