Only cost of certain goods are proportional priced to the average income. But there are a huge number of goods are not priced that way, electrical appliances, gadgets, and most manufactured goods are priced similarly across the globe. Hence high GDP per capita does have its advantages as nation which is high in the chart can afford to buy more of them. Also the reason why China is able to export their manufactured goods to the whole world due to they are relatively low and hence has an immense competitive advantages compared to the world. That's why I always say USA keeps making China become more competitive by always trying to disrupt their growth and make them poorer.

Why Japan no longer is the manufacturer of the world? Just look at how high they are in GDP per capita chart. And lets say China really does stop exporting to the world, USA still won't become manufacturing powerhouse because they are too high in the chart, and someone else at the lower end of the chart will become the next manufacturing powerhouse.

This post has been edited by vhs: May 4 2025, 10:56 AM