While this analysis is OK, i don't quite agree with the analogy that someone should be called rich or poor simply based on their regular income.
Take an example, in an agrarian economy like Uganda. To say that a smart money lender at Parliamentary Avenue with no single asset but trades ugx 300m and receives over ugx 50m in profits in a year is richer than a herdsman in Kiruhura with his 50 local Ankole cows grazing on 200 acres of prime farmland valued at US$1 Million and appreciating at 10% per year just because the herdsman gets a patry ugx 5m annually income from his milk sales is simply a fallacy!
These measures don't appropriately grade the wealth of societies such as ours where life & success aren't measured in how much liquidity someone has just as you and the World Bank look at things.
Hi Mr. Kakande, this is a good analysis. However, the truly accurate measure may be: how long one can survive when the primary source of income has stopped (for us wage/salary earners)
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I think income should be one of the considerations when measuring wealth and not THE measure.
Thats true, It's one way to look at it, but so many things to consider. Thank you Mary.
While this analysis is OK, i don't quite agree with the analogy that someone should be called rich or poor simply based on their regular income.
Take an example, in an agrarian economy like Uganda. To say that a smart money lender at Parliamentary Avenue with no single asset but trades ugx 300m and receives over ugx 50m in profits in a year is richer than a herdsman in Kiruhura with his 50 local Ankole cows grazing on 200 acres of prime farmland valued at US$1 Million and appreciating at 10% per year just because the herdsman gets a patry ugx 5m annually income from his milk sales is simply a fallacy!
These measures don't appropriately grade the wealth of societies such as ours where life & success aren't measured in how much liquidity someone has just as you and the World Bank look at things.
Looks like many of us are in the lower category
Hi Mr. Kakande, this is a good analysis. However, the truly accurate measure may be: how long one can survive when the primary source of income has stopped (for us wage/salary earners)