Earlier quoted context omitted.
The thing is, PPP is only for things you have to actually buy. Where I live, salaries and PPP is lower than in the US where I lived before. But it's not that simple. Does PPP take into account that I got my 5 year education for free? Actually I received roughly $400/month to go to university. Which also means I don't need a college fund for my kids. Does it reflect that health care is free and I don't have to even th…
You'll actually find it's pretty complicated to measure earnings in Europe. In London you could happily be earning $200,000 - $300,000 with IT skills, avoid tax, keep 90% of that, and have the state benefits. Simply stated, because of the high levels of tax and rife avoidance, it's probably quite difficult to quantify earnings in London, for example.
How? Which particular state benefits are you talking about?
(And it seems like you're talking about evasion - which is illegal, rather than avoidance which is a mix of normal tax planning (a contractor registering for VAT and claiming some of that back) and loophole-manipulation).