What is the difference between gross income and disposable income? If I want to know which countries are prosperous, which one should I look at?
Check these sites.
http://en.wikipedia.org/wiki/Gross_national_income
http://unstats.un.org/unsd/cdb/cdb_dict_xrxx.asp?def_code=290
Gross income and disposable income are two distinct measures used to assess an individual's or a country's financial situation.
Gross income refers to the total amount of income earned or generated before any deductions are made. It includes wages, salaries, bonuses, commissions, rental income, and other sources of income. Gross income does not account for any taxes, insurance premiums, or other deductions that may be applicable.
Disposable income, on the other hand, represents the amount of income available to an individual or a household after deducting taxes, social security contributions, and other compulsory deductions. It reflects the income that can be used for consumption, savings, investments, or any other personal expenses.
To determine which countries are prosperous, it is typically more relevant to look at a measure such as the Gross Domestic Product (GDP) per capita. GDP per capita represents the average income per person in a country and is a common indicator of overall prosperity or economic well-being. It takes into account both the gross income generated within a country and how it is distributed among its population.
There are various sources for obtaining data on GDP per capita, such as international organizations like the World Bank, the International Monetary Fund (IMF), or specialized agencies like the United Nations Development Programme (UNDP). These organizations publish reports and statistical data that rank countries based on GDP per capita, providing insights into their relative prosperity levels.
By referring to reputable sources and analyzing GDP per capita data, you can gain an understanding of which countries are considered prosperous based on their average income levels.