Wednesday, 9 April 2008

How much is that in real terms?

Recently, there's been news of the financial losses from the American meltdown reaching $1 trillion, and similarly sized estimates of the cost of the Iraq War. So a short exercise in perspective may be necessary.

Imagine a small cul de sac, with 22 households in it, 11 houses on each side. The most expensive of these houses flies a Stars and Stripes. About four are owned by Indians, and four owned by Chinese.

The average income of these households is around $60,000 each. This is, however, an average - the household flying the Stars and Stripes pulls in $276,000 per annum, while the four households owned by Indians pull in $14,825 each. That gives you some idea of the wealth distribution of the world.

The Stars and Stripes house just blew $20,000 on a trip to Vegas. Earlier during the year, it had a big Fourth of July party with a lot of fireworks that cost anything from $12,000 to $80,000 depending on who you ask (and probably around the $20,000 - $40,000 range.)

By the way - the local neighbourhood watch program has a regular budget of $38.50, and an operating budget of $83.80 - and members of the Stars and Stripes household are worried it intends to take over...

Does that help with the perspective?

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