More specifically I’m referring to the US: The Median income is $31,000 but the GDP per capita is $65,000. These are 2 measures of how wealthy an average citizen is, yet they are drastically different numbers. Could someone explain?
In: Economics
GDP per capita means you take a big number (total value of all goods) and divide by the number of people.
Median income means you look at everyone’s income and then pinpoint the income where half of all people are above it and half are below it. There’s no division here.
So, of course they’re different.
You should look up what a median is. It’s not a division average. And income isn’t GDP. Steve Job’s salary was $1 per year, that’s “income” which is totally different than the value of all the country’s production.
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