Is it fair that some currencies have more buying power than others?

[Anonymous]

For example, is it fair that a visitor from USA can pay $20 USD to get breakfast, lunch, dinner, snack, and one night stay at a hotel in Vietnam?

Yes

No

Other / I want to see results

Updates

1 y

Minimum hourly wage in Vietnam appears to be <$1 (https://relinconsultants. com/vietnam-minimum-wage/#:~:text=Minimum%20hourly%20wage%20rates%20for,%E2%80%93%20VND%2017%2C500%20(US%240.75, accessed 12/14), whereas the minimum federal wage in USA for nonexempt worker is $7.25 (https://www. dol. gov/general/topic/wages/minimumwage#:~:text=The%20federal%20minimum%20wage%20for, of%20the%20two%20minimum%20wages, accessed 12/14)

Updates

1 y

Why is 1hr of min. wage work by someone in USA at least 7 times more valuable than 1hr of min. wage work by someone in Vietnam?

[lightbulb27]

of course not. but the world is not fair nor life. how do you go about making it fair? We've been outsourcing work to china and asia long time... now they have much more wealth, in some cases, they live better than in the west.

[molonski2]

The system is completely unfair , and unrealistic , its ludicrous that the US $ remains the yardstick , we have all the same bullshit issues here with people from US..

Its partly helped the massive rise in Bitcoin.

But certainly not fair , and then you get various currencies propped up , its a crazy system.

[DrPepper12]

Don't worry, the Americans are throwing away their status of the international reserve currency more and more every hour. Give it a century it'll just be one of a basket of currencies.

[molonski2]

Yes that's very true also

Making the century may be the problem 😉😉.

[Garud]

The main reason behind immigration is that Western and Middle Eastern companies want to exploit cheap labourers and cheap labourers are happy because they can earn better than in their home countries, they live dirt cheap lives in these countries and send money back to their families or when enough money is accumulated so that they can live peacefully in their home country. So after a decade they leave or stay if needed

[exitseven]

The value of currency is often reflected in the strength of that particular countries economy. When America's economy s doing good, the dollar becomes strong and is worth more than other currencies.

[jshm2]

It's how economies work, sunny.

Also, the reverse is true as well. Some things are cheaper in the USA than abroad.

[DrPepper12]

Currencies float. Just like the prices of any other commodity. I don't get the question

[Asker]

Is it fair that 1 hr of work completed by minimum wage worker in USA is more valuable than 1hr of work completed by a minimum wage worker in Vietnam (can be ~7 times more valuable)?

[Asker]

Both people may exert the same amount of energy and effort, yet one has more buying power than the other.

[Asker]

Should we make a better system (and can we make a better system) so people get paid fairly for their work (akin to energy in physics being a 'currency')?

[DrPepper12]

Yes. It's fair. Comparative advantage. Simple

[Asker]

Can you explain? I am not familiar with Comparative advantage, so it is not simple to me.

[DrPepper12]

Sure. A mechanic. COULD do his taxes but that's not HIS Comparative advantage. He is better off spending his time fixing cars and paying an accountant to do his taxes.
The accountant, similarly could change his oil but that's not his comparative advantage. He is best to stick to taxes to earn the money to pay the mechanic.

Here are some key points about comparative advantage:
Opportunity cost
Comparative advantage is based on opportunity cost, which is the value of what is given up to produce something. For example, if Owen has a comparative advantage in embroidering pillows, then his opportunity cost is the number of scarves he could have knitted instead.
Trade
Comparative advantage is the basis for trade, which is when countries exchange goods, services, or resources. Countries can gain from trade by exporting the goods they produce most efficiently and importing the goods they don't produce as efficiently.
Specialization
Comparative advantage is a powerful tool for understanding how people choose jobs and how countries decide which goods to export. For example, a country might specialize in producing wine and export some of it to pay for wool imports, even if it's the world's best wool producer.
David Ricardo
The theory of comparative advantage was developed by British economist David Ricardo in the 19th century.

[QuietRunner]

When the opposite happens, you won't have travelers from the USA in your country. Only the rich will be traveling, like the rich Chinese.