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 is the average output. It is correlated with the mean income. The mean is much higher than the median because of income inequality. A person making 10mil/year brings the mean way up, but barely effects the median.
Latest Answers