

There’s a few things to consider.
On a theoretical level, Marx has already explained why exchange and use value diverge in a Capitalist economy. At national scales, it can be explained by numerous mechanisms, most notably Imperialism, unequal exchange, US Dollar hegemony, etc.
But even on a technical level, there are caveats to be had.
Firstly, the PPP basket, uses 2021 data released in 2024. A 5 year old basket that is then index linked forwards til 2026, after 2 major inflationary wars, will understandably affect results and accuracy massively. This precludes the worst of Germany’s energy crisis, China’s post-COVID response, and numerous other structural changes. This is a notable problem with fixed-weight indexes that introduces base drift after the benchmark year.
The PPP conversion factor in non-survey years is extrapolated/interpolated by taking into account inflationary movements (the GDP deflator) between countries, by consequently linking it to changes in the US GDP deflator. Exchange rate does have a role technically here (by feeding into inflation during depreciation cycles for example), but in practice PPP is designed to net out exchange rate and inflation factors in the first place.
Secondly, PPP as a concept is also dubious for gauging real in practice differences. There is not a globally applicable basket. This is something the ICP Programme acknlowedges, where there are regional lists of consumption baskets that is then combined to a global core. But this means in practice, someone in Germany won’t be spending 20% of their income on rent and 30% food, but a global list will have to weight it that way for cross-comparison. So the PPP basket is like a mean compositional average that no real individual country actually spends on but semi-useful for cross comparison.
Thirdly, this all follows manipulating GDP data which relies on the System of National Accounts (SNA), which has it’s own sorts of failures and inadequacies from a Marxist standpoint.
So all in all the data has some explanatory power but remains mired with the complexity of condensing all of human activity into one singular number.







Today marks the 69th year of independence of Peninsular Malaysia, historically known as Malaya.
To mark this occasion, I like to highlight that the country now generates more electricity per capita than 2/3 of their former colonizers.