No, PPP does matter in this case because they purchase the equipment in Rubles, not USD. But that also means the equipment prices adjust based upon the value of the exchange rate if the equipment is made in Russia.
As said, its called Purchasing Power Parity.
Su-35 first purchase was an 2009 at close to 100B Rubles
Second Order was 2015 at about 100B Rubles. 2015.
Defense budget has stayed the same.
Contract though stated:
$2.5B in 2009 (USD)
$1.6B in 2015 (USD)
So yes, PPP does count because the jet went from:
~$50M per aircraft
~$30M per aircraft
both in USD.
And no, you do not "get what you pay for". Enough of this stupid fallacy.
BMW ranks lower than Kia and Hyundai for quality:
Yet prices are that BMW is much higher. Notice Mercedes vehicle wasn't mentioned?
Both BMW and Mercedes are leaps and bounds more expensive. So where is the "you get what you pay for?"
Land Rover gets one of the worst ratings. Guess how much a Landrover vehicle costs? Cheapest is about $63,000 CAD. Expensive is over $100,000 CAD. Hyundai and Kia are around $20,000 CAD to $60,000 CAD.
M1A1 still doesn't have an auto loader.
Seriously, its been mentioned - anyone who says PPP doesn't matter regarding economics, has no idea what they are talking about. It is really everyone vs 1.
Kimppis wrote:Actually, that is exactly what it does. Big Mac Index is basically the same thing lol.
The admin of Russia Defence Forum doesn't get purchasing power parity. After 2014. No offence, but I find that hilarious...
Please tell me at what bank I can exchange my money for non-existant PPP money? The PPP doesn't account for quality of the item purchased. The Big Mac in Russian villages is not the same beef source as the more expensive one in Moscow. The Russian tank quality varies in our own country, Armata is better than T-90 but costs as much as the Abrams. Yasen is as good as the Virgina, and it also costs as much as the Virginia. You get what you pay for.
Virginia submarine costs about $2.6B per sub
Yasen is 47B Rubles for lead sub
which translate to:
$721,993,931.00 United States Dollar
Armata Costs $3.7M Per tank
Abrams tank costs $8.92M per tank as of 2016.
Numbers mentioned here is 1999 cost gathered for M1:
Add in inflation, its much more.
And no, you cant "exchange it". Comment like that shows lack of knowledge on this. This is how much you can get for goods in RUBLES in RUSSIA. Crying out loud, its the most basic knowledge for even basic economists.
Purchasing power parity (PPP) is a popular metric used by macroeconomic analysts to compare economic productivity and standards of living between countries.