[throwaway2037]

From my experience travelling, the best measure I have seen with my own eyes a blend of GDP-per-capita and PPP-per-capita. I say "blend" because some places have incredibly cheap labour, which makes PPP-per-capita artificially high. Unfortunately, you see more depression, obvious, poverty in those places.

About your example of living in San Jose, California, USA vs Mexico City: Where would you prefer to live? Where do you think the schools, hospitals, economy, and social safety net (retirement, etc) is better? Sure, the houses may look similar, but San Jose is objectively rich by global standards and Mexico City is middle income.

[kjkjadksj]

Honestly it might be not so different in mexico city. There are probably some decent enough schools, I wouldn’t be surprised if a good private school is a lot cheaper. Medical is probably the same for all intents and purposes but I expect your out of pocket to be way cheaper. Plenty of californians go to mexico for costly dental or medical work already. And lastly for retirement I am sure your savings will go much further in mexico city than in san jose. There are many californians who send money to family in mexico because the quality of life is better for them to stay there and stretch that dollar then for the entire family to all move north. You might be talking an upper middle class lifestyle there vs a desperate one.