When I say "spending power" it means "disposable income" in
economic terms. The calculations don't have any behavioural
bias (like want to buy car, condo, dine in restaurants, holidays,
etc). It just shows you how much a person would have left
after Income Taxes and GST.
I hope you can understand. 
A waiter in Australia gets AU$26,865 (after income taxes
and GST), while a Singapore waiter gets SG$11,160 (after income taxes and GST).
***Should be SG$11,160 not $1,000,
perhaps this is the part for the confusion with with Stevenson101,
my fault, was busy monitoring the aircon service technician
and posting.
If both person have similar spending habits, then the person in
Australia still can afford more things than the person in
Singapore. Get it?
Why is there such a large difference? Singapore has a higher GDP
per Capita to Australia and US.
Why?
-----------------------------------
Firstly, wow you have such a deep appreciation of economics that
I would never be able to fathom.
But of cos, of cos you are right. You say a waiter earns 26K
AUD per year after taxes in OZ.. And a Singapore waiter earns
11K SGDafter taxes. Therefore, the disposable income is greater for
the waiter in OZ right? May I know, what are your basis for saying
that? Enlighten me.
