True, my comment was ignoring the fact that America's per-capita GDP is higher even after controlling for PPP. People can move for a lot of reasons. Having a much more transparent and predictable justice system is also one of them. For instance, my money would go a lot further in Russia, but then I'd have to live in Russia.
But the point stands that market-exchange GDP matters more when it comes to comparing the relative strength of countries, rather than individuals, since it endows the government with greater purchasing strength. An era of trade wars might test this theory, but the ramifications of absolute isolationism would be far more complex than that.
>For instance, my money would go a lot further in Russia, but then I'd have to live in Russia.
It's important to point that if you were moving into Russia as an expat, you've already avoided much of the opportunity costs of building your career there first and instead going in having "made it" in another country.
If you are starting out in China or Russia, it's much harder relatively to climb to a similar position within those countries than in USA. Alot of expats might like how much their money goes in China with good CoL, but I'd be suprised if they were to send their children through the conventional route of the Gaokao and ultracompetitive Chinaese University Admissions and labour market. Getting into the Ivy or Berekely or a State Flagship and then FAANG is cakewalk in contrast.
But the point stands that market-exchange GDP matters more when it comes to comparing the relative strength of countries, rather than individuals, since it endows the government with greater purchasing strength. An era of trade wars might test this theory, but the ramifications of absolute isolationism would be far more complex than that.