I'm exaggerating, but the recent launch of the Tata Nano (the world's cheapest car, at $2000) reminded me the value of money might never change, but its purchasing power varies. It's hard to resist the feeling of sudden wealth that descended upon me when I realized that I could buy the Nano several times over.
I got out for meals all the time, and the total rarely comes above $20. I can take a cab from one end of the city to the other and pay $4. For a little while I enjoyed the novelty of being able to afford things easily. (Remember that I entered a profession that's famous for adventure and poor payouts, in equal measure. Writers earn peanuts, and unlike some people, I don't expect that I won't have to worry about money as I get older)
But of course, this isn't just my vacation, it's a way of life. If I, a starving journalist just out of undergrad, can eat well in India (or at least for a little while), what does that say about the millions of people who can't do the same? How much poorer they appear.
These discrepancies account for the fact that although many foreign companies maintain manufacturing plants in India, the quality of consumer goods is superior in the United States. The median Indian (I said median!) might have trouble buying the things that the country exports.
This isn't a new observation, but I feel obligated to identify the dark side of my silver-lined cloud.
today, you think in US dollars and spend in Indian rupees, hence the disparity. Most people in India earn in rupees, and Mumbai is plenty pricey enough for them, even if they have an above-median income. The big gorilla, housing, is where Mumbai-ites spend well over half their income. Its fairly common for tiny flats to rent for over $2000US, and only the rich can afford them.
ReplyDeleteHey there! You're right that I think in dollars and spend in rupees, and that Mumbai is pricey enough for people who earn in rupees. But that was sort of the point of the post - that this disparity is as big as it is. (Your point about the above-median incomes is valid, though. Could part of this be that the median income is quite low, while the average income is probably higher? Nonetheless, Mumbai is a very expensive city, which seems to be true of most major international cities.)
ReplyDeleteThe housing situation, on the other hand, is more complicated than most, or so it seems. There are all the pressures on housing prices that exist in parts of major US cities (say, Manhattan) + a bigger population + the Rent Act.