Purchasing Power Parity: When in India, Get a Haircut
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- Опубликовано: 10 сен 2024
- How far does your money go in other countries? Before you hop on that next overseas flight, watch this video on the fundamental concept of purchasing power parity.
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Awesome initiative. Being a middle class indian I never tried those roadside barbers, but you actually did. That's a lot of dedication sir. Great video.
Love your subtlety
You all prolly dont give a shit but does anyone know a way to log back into an instagram account?
I stupidly lost my account password. I appreciate any tips you can give me.
@Bronson Francis Instablaster ;)
@Fox Ezekiel Thanks for your reply. I got to the site thru google and im in the hacking process atm.
Looks like it's gonna take a while so I will reply here later with my results.
@Fox Ezekiel it did the trick and I actually got access to my account again. I am so happy!
Thanks so much, you really help me out!
Dhanyvaad sir ji..
People like you are blessing to someone like me who can't afford higher education.. Thank you sir, and to your whole team.
Next time when come to India just upload video message sir would love to meet you and thank you personally 🙏
this is really unprecedented way of teaching...u r going well..my gratitude to your videos..
Explained so beautifully! Thankyou so much for the efforts.
Welcome to India.... This will be your most popular video.... Indians love youtube and economics... Make videos on Indian economy your channel will grow very very fast... Just try and see....
I thought an Adidas soccer jersey in Mexico would be more cheaper than U.S, and I was wrong. Now I understand why. Yay economics!
Luis MQS I actually prefer buying phones, computers and clothing in big, developed countries.
There are more products and stores to choose from, and competition is fierce, so prices are low.
Some shoes are really cheap over here in india! But think about it.... I'm not gonna buy shoes and sell it in the USA.
Tradeable products sometimes don't cost the same in all countries. Governments enforce different tax and custom rates on products so it can be a little bit cheaper or a little bit more expensive from country to another.
I think it's more of branding and advertising effect or more accurately irrational economics.
My grandpa once bought me a pair of Converse in Mexico
This channel surely deserves more subscribers
now they have 361k~ how cool!
this is such a well produced video! the presentation reminds me of science for kids tv shows. they make science fun by showing it rather than blandly talking about it. this would be a perfect video for a classroom.
Economics for middle schoolers? I am in a university class and this is more helpful to me, than text. This needs to be implemented in public education I wish this was studied when I was in public middle school in Missouri.
It was a fun experience & I learnt a lot making this series of videos on Developmental Economics with Alex Tabarrok four years ago in September 2017.
50 rs for a haircut you could've got it in 20 rs.
Not in Mumbai
Great video. There's a flaw in one of the linked practice questions though. One of the questions is as follows:
Q. 3. Consider two families of the same income: one family is in a developing country and the other family is in a developed country. Which family is more likely to have a dishwasher? Remember both families have equal incomes.
OK, it seems to me that the answer is unclear. Both families will purchase both goods and services. If they have equal incomes, the family in the developing country is in some sense richer, since they pay the same for goods but less for services. Doesn't that mean they have more money left over for luxuries like a dishwasher? But on the other hand, labor might be so cheap that they can hire a person to do their dish washing instead of purchasing a machine for it. But it's not obvious at all.
(On a different note: Wait a minute... wouldn't a hired dish washing person be known as a "dishwasher"? If so, the developing country family "has a dishwasher" either way... perhaps "dishwasher" was not a great example to choose for this question...)
Stuart Berg in reality there are not many dishwasher persons in poor countries. More efficient to work in general house cleaning, otherwise you would need to go to lots of houses every day to make ends meet.
And that's why PPP GDP is a joke... If i lock 10 people in a dungeon and give them approximately 100$ they will start using that currency in pennies.. WHY? Because they are poor and the services&raw local goods become cheaper.
GDP PPP Is nothing but this... poor people having more "Purchasing power" Is a farce, they are purchasing from who? even poorer people.
I think the answer will definitely be the person in richer country is more likely to have dishwasher.
This is because the opertunity cost of owning a dishwasher is so great, you just better hire someone do it in a poor county. Vice versa on the richer country.
@@விஷ்ணு_கார்த்திக் That's true, that's why I always prefer nominal Per Capita over PPP Per Capita.
yes, you can hire house keeping in India for very affordable rate, also housekeeping services are a little different here, they offer services in many houses in a day, visiting each house both morning and evening, spending an hour on every visit. It's good business
Sir! New to ur channel, not an economics student but was thinking of learning economics, stumbled upon ur channel saw a whole playlist on indian economy( needed badly as i myself from New Delhi), really loved the way u explained the topic, even a noobe like me got it! Excellent work!! Just a small request, can u make similar series explaining indian economic history.
Hi I wasn't understanding a bit of economics but your videos and simple explanation is made me understand a lot. Thank you so much. I will continue to watch new videos.
I wasn't interested in Economics until I found their videos. Lots of respect professors. :)
1:28 Hey man are you going to buy this phone or what?!
Very informative and creative method to illustrate how we encounter PPP almost everyday in our lives.
Thank you
Incredible video! Unprecedented way of teaching!
So goods are usually equally priced, but services vary over different countries because of differences in PPP?
Beautiful explanation. And your Hindi ain't half bad either😋
best channel of economics with practical models.Thank you for such great content
Welcome to India!
Dhanyawad apko sir...
Underrated channel
I love your Hindi and your videos are THE BEST for economic learning to beginners ♥️👏
The way they present economics to layman like us is unbelievable.....
Amazingly presented and explained 🙌
Thank You !!
Great & simple way of explaining.
Once i paid .12 usd for a haircut and shave in rural india.
Dhanyawad .....
It would be amazing if you could share the sources on the description! Keep the good work
What a fantastic way of teaching
Thank you for this video and great effort in making this happened. Liked and subscribed to the channel. Keep doing a fantastic job 🎆🎇☺
Much appreciated!
-Roman
2:32 when you was expecting to get paid in US dollars.
2:32. When you were expecting to get more lmao
How does Purchasing Power Parity get calculated between countries?
Flaming Basketball Club world bank takes into account the price of 100 items in every countries in their own currency and then compares it to US DOLLAR purchasing power.For eg-suppose 1$ =48 Indian rupees which is the price at which currency are traded in stock exchange and banks.But when we calculate the cost of 100 items which I can buy for lets say 1$ in US is costing me 16 rupees in Indian currency,I see that I can buy 3 times as much.Which means 1$=16rupees and not 48.
You should go to local McDonald's and see the price of a Big Mac in local currency. Then, you should divide this price to the Big Mac price in USA. That's how you'll get the PPP in local currency to US dollar.
Actually, that's a joke :)
Great video!
Haha that was a cool video. Cool to see him in India talking to real people. I can't imagine they made a profit on this video though.
Awesome informative video, you just earned a subscriber 😊👍
Great to see some good mind-expanding content on youtube.
Nice to see you in my country!
Didn’t Tyler Cowen on MR say that purchasing power parity can’t exist and that’s one of his biggest disagreements with Mises? I’d be interested to hear Tyler elaborate on his perspective
Exactly, that's why I was thinking for few days that only per capita income can't define the living standard of any country.
thanks
So crazy.
balassa samuelson effect!
Got this effect name after googling it for long time. So, it might help you to save some time!
giving real meaning to education
With all due respect sir , can u please update yourself with the fact that India is not a poor country, it is a developing nation
Buddy guy this video is 3 years old -.-
Very well explianed sir👏👏
I was very distracted trying to decide if that last part was taped before or after the haircut. looks the same to me.
im confused. Wouldnt the PPP also be decreased when people earn less? 1$ goes a long way in a poor country but many people in poor countries are poor, and 1$ can be 'alot'?
Not that I'm offended or something, but the India shown in this video is majorly what a small town or maybe a backward area of a big urban city looks like. Smartphone shops are a lot bigger and more and more high tech salons are coming up now which easily charge over 6$ for a simple haircut. No, Rajoo is not as good as any other barber in United States because he probably migrated from a rural city and now running his roadside barber shop. They have proper training for all kinds of services now and they look a lot professional working in luxurious salons, so much that most of the middle class people avoid going to them because let's face it, it costs more than 10 times to go to them.
I actually liked this video, serves the purpose well but just my insight that it used to look like this a decade ago.
You're missing the point here. If you want to get a haircut for to say $1, here in India at least someone will offer you for the price, but in other countries like the US, nobody will give you a haircut for the same price, even if you advertise in the newspaper 😂. So, if you think about it large scale like Manufacturing or some other services, in poor countries, there will be always someone who are ready to do the job for a penny.
Fascinating💫
he just walked out.
thank you
Hair cut is for Rs 130 now in Pune.
Dear Professor. God bless u thank u very much for this video. I can understand the theory of economics by connecting it with real life examples you gave!
Anyway, do you have open economy topic? Thank you sir..
Where is the video of "Purchasing Power Parity corrections" ?
love this
bro that cut looks good af AND it was less than 1 dollar AND go got a head massage out of it??
Welcome to India. You still have the fancy salons in India that charge you $20 for this.
Why did she slap
lol
WOW
The fact is this that rich countries think that the value of the life and time of their people are more important so they keep their price high and now because of globalization when the labor can be sold from far away with the help of information technology so their local citizen are not that competitive now when compare to the labor of developing or undeveloped countries.
now it makes sense why services suddenly get 'expensive' for tourists in india xD
Barbers in my city take Rs 40 for haircut. But yeah, he gives you the excellent massage at the last that's very interesting to see which I missed here in my city.
welcome in india sir
C`est geniale
Why don't people talk about labor price purity rich countries print their currencies like progressive countries like India do.If the productivity of the two person is same why the fee of their labor is differs this the way rich people keep them rich.If two person run the same distance at the same time how to justify the difference fee pay to them? The price of a currency should be divided by the total natural resource of that country divided by the total currency (physical+electronic) form in that country and take any base currency to evaluate that.
2:20 Literally laughed out loud xD
He did not buy iPhone because it was expensive in india and got a haircut because it was cheaper.
welcome india , sir , ty for ur visit
did you actually learn hindi Alex ? :)
Are you in Mumbai?
welocome to INDIA sir.....hope you enjoy...
Lol they dubbed the barber 😆
nice nice
Angola is a poor country but its Lwanda is more expensive than London or Zurich in some indicators.
What is this phenomena?
vivek kumar it is because it imports most of its things.
Read about "Dutch Disease"
You should have thanked Mobile Shop Keeper before walking out abruptly. That was very uncourteous.
India is so poor, but it’s getting richer
Welcome in india sir. If you are here in india I want meet you .
Thanks
Not everyone barely poor people go for haircut in such footpaths
Why samuelson effect...😂. Samuelson isn't the first to notice this...haha...formalize common sense using maths and get an effect named after you in economics.
welcome to India
We are soon gonna charge extra for that stereotypical music.
I have grown up in india and trust me i would never go there for a haircut as your prone to infections due to lack of hygiene.
Barber know English
Of all the places he could go and get a haircut in India (Toni&Guy, Jean Claude Biguine, etc.), and still prove the economics, he goes to Raju.
Thank God Raju gave him a great one, else he would have complained about inferior services at low prices.
Oh my god, and i thought india was more developed, a tent barbershop? ... I havent seen those in my area since 1997.
Haha there are all kinds of barber shops in India- you can get a haircut for Rs 80 to Rs 500, depending on the 'brand' you choose.
Lol look there are way too many fancy salons and these too in my city
To all the westerners out there-
STOP PUTTING THAT STUPID MUSIC THEME INTO ANYTHING AND EVERYTHING RELATED WITH INDIA.
I am an Indian and I am sure it doesn't represent our true identity at all!
Are you in mumbai if you need any help im ready to help you indians are very helpful you will never get lost here cheers:)
Rubendan Vanuden Is india safe to visit ??
tony a offcource it is
Rubendan Vanuden How much money do I need if I want to go to India for a week ?
tony a you can google a tour package to india and the price will be there
Rubendan Vanuden ok thanks
India kicks ass!
if we are being honest, this professor is kinda cute.