Economist Steven Levitt writes that US inequality may be overstated because measures only consider income, not the prices of good available for purchase. I think the same may be true globally and in developing countries.

As I’ve written before, the price of motorbikes has declined significantly in the last decade. As China has caused deflation in developed countries among the products in can manufacture, the same is true for developing countries.

Lack of copyright enforcement also makes intellectual good significantly cheaper in developing countries.

In Laos you see a lot of satellite dishes on even the most simple looking traditional houses. TVs, DVD/VCD players, and mobile phones have all significantly reduced in price over the last decade, much to the benefit of the citizens of developing nations who can now afford such items.

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