[graeme]

The wealthy bid up prices. Depending on the industry, you can buy equivalent good and services for much, much less than you can in America.

Obviously this doesn't apply to an iphone, a private jet, or a Bugatti Veyron.

But if you want a haircut or groceries, it applies. Likewise to a host of other goods and services that the poor spend money on.

Give me bottom 10% in America ($10,500) and I'm very, very poor.

There are countries where you can live like a king on that same amount of money.

(It depends how much you value personal services such as maids, cooks, etc. which tend to be most affected by this phenomenon)

[tptacek]

The bottom 10% in America is not very poor, or even "poor", by world standards. The homeless in America have better health care today than Dwight Eisenhower had when he was President, and, obviously, better health care than the rural poor of China.