To put it by comparison: Monaco (the country) is a smaller than Central Park in NYC but their GDP per capita is around $256,000 while the USA it hovers at around $92,000. Like why does a European microstate that small have a higher GDP than a major super power? They don’t have income tax to be worried about (unless you are a French citizen).

Is it because everyone there is basically a millionaire or working in the tourism industry where their main clientele are basically elites who have left over cash? The country’s population is 38,500 (about half of San Clemente, CA) but even with a small population, do people in Monaco have a higher disposable income when you take it into account?

  • paraplu@piefed.social
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    4 days ago

    I think you might be missing an important part of GDP per capita, and be asking a slightly confusing set of questions as a result.

    Per capita means per person. “GDP” and “GDP per capita” are each very different numbers.

    GDP - tries to measure the total economic output of the country. It might be what you want to use to compare the raw economic might of two economies.

    GDP per capita - This is just scaled by the population. You might use it to see if a small country like Monaco is punching above its weight.

    Median GDP per capita - This third measure is what you might what to use to see how the average citizen in a country is doing. Ideally you’d want to also control for cost of living, but generally a bigger number here means higher quality of life for its citizens, even if the cost of living is also high.