When I show the Norway vs USA tax rates, theres always that one person who messages, saying, But the local purchasing power for Norway is LOWER!!! Quick lesson, bub. Your first mistake was thinking Power meant Energy, as in solar, gas, wind, hydro, oil, fossil, etcetera. Local Purchasing Power does not at all mean that. Purchasing Power is how much one unit of currency can get you. For example, take my home country, the Philippines. One USD here can get you a digital song, bottle of soda, bottle of shampoo, anything at Dollar Tree, a lottery ticket, a Wendys junior cheeseburger, a notebook, a one night Redbox rental, a house in Detroit, and sometimes even around a half mile on a taxi. You get my point. Now, take the Philippine Peso. Forty-Five PHP is equivalent to one USD. So you can buy... ...nothing, really. That means the Philippines Local Purchasing Power is lower than here in the United States. So, when it says Norways Purchasing Power is lower than here in the US, it means their currency isnt as strong as ours. Hope this clarifies things. (PS) lower was marked in red. If it was a good thing, itd be marked in green. Just for future reference.
Posted on: Wed, 01 Oct 2014 22:38:01 +0000
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