Mathematic puzzle: Russia economic growth is lower than China, then why Russian people live better?
There are some mathematic puzzles that I don’t understand. Since 1999 China economic growth has been much higher than Russia, but now Russian people live better. I am not complaining, just curious how to explain it?
Before 1999, Russia GDP annual growth was -20%, Russian people were suffering extreme misery. Average living level was one third of Chinese people. GDP was 3% of American GDP.
But today, Putin’s (Medvedev’s) Russia suddenly changes for good. The average living level is three times better than China.
According to related material, during the recent 10 years, Russia’s GDP didn’t surpass China. Why does Russian people’s living become far better?
What’s more, Japan economy began developing in 1950s, 30 years later became the second biggest economy nation. However, China has developed for 30 years since Reform and Open, and the increasing rate is as high as Japan of that time. Now Chinese average income is 1/20 of Japanese.
It’s inconceivable! How to explain it?
Quoting from [tot]:Mathematic puzzle: Russia economic growth is lower than China, then why Russian people live better?
There are some mathematic puzzles that I don’t understand. Since 1999 China economic growth has been much higher than Russia, but now Russian people live better. I am not complaining, just curious how to explain it?
Before 1999, Russia GDP annual growth was -20%, Russian people were suffering extreme misery. Average living level was one third of Chinese people. GDP was 3% of American GDP.
But today, Putin’s (Medvedev’s) Russia suddenly changes for good. The average living level is three times better than China.
According to related material, during the recent 10 years, Russia’s GDP didn’t surpass China. Why does Russian people’s living become far better?
What’s more, Japan economy began developing in 1950s, 30 years later became the second biggest economy nation. However, China has developed for 30 years since Reform and Open, and the increasing rate is as high as Japan of that time. Now Chinese average income is 1/20 of Japanese.
It’s inconceivable! How to explain it?
The explanation is very simple: it all depends on how this wealth is distributed. Does everybody get a share, or only a few people?
Quoting from [germex]:The explanation is very simple: it all depends on how this wealth is distributed. Does everybody get a share, or only a few people?
germex is 100% right. But there is another importnant thing also. Who told you that Russian people live better than Chinese? Of course if you will come to Moscow or St. Petersburg, or other big city you find a lot of expensive cars, boutiques, restaurants. But you can also find poor people, which one year imcome 100 times lower than yours. For example, somewhere in the countryside average monthly income can be around than EUR100. The thing is that you know only what you see. I have been to China many times. I have seen many reach people there. I have also seen a lot of poor people.
But, of course if you talk about amazing growth of Russian GDP it's "oil money" first of all. This is the reason.
Quoting from [maximyurin]:germex is 100% right. But there is another importnant thing also. Who told you that Russian people live better than Chinese? Of course if you will come to Moscow or St. Petersburg, or other big city you find a lot of expensive cars, boutiques, restaurants. But you can also find poor people, which one year imcome 100 times lower than yours. For example, somewhere in the countryside average monthly income can be around than EUR100. The thing is that you know only what you see. I have been to China many times. I have seen many reach people there. I have also seen a lot of poor people.My explanation was only theoretical. I'm quite aware that in most countries the relationship is approximately that 95% of the wealth is in the hands of 5% of the people. Not too much difference from country to country!But, of course if you talk about amazing growth of Russian GDP it's "oil money" first of all. This is the reason.