I was speaking to someone recently, saying that our Zoe kids live on $2 per day (technically, I think the extreme poverty line now has moved to $2.15/day).

And they said, “yeah, but $2 goes so much farther in places like that” or some such.

And my response is “yeah, but….” and then I got stuck, because that’s exactly my pitch to people when speaking of how worthwhile an investment in Zoe is. A little help (empowerment) in places like Africa, where there is such extreme poverty, does go a long way, because we’re paying (or helping to pay) for:

• Salaries for social workers on the ground;
• Local experts (e.g., agricultural extension agents from educational institutions in-country);
• Some capital expenses (e.g., sewing machines and welding kits, which the kids receive after demonstrating sufficient interest by attending training classes).

and most of that stuff is cheaper because it’s local (e.g., salaries).

But.

The “$2 per day” figure is sort of an economic fiction. They’re not really living on $2 per day. They’re living on the same ability to purchase goods and services as if they were living in the U.S. on $2 per day. They have the same purchasing power as if they were living here on that amount. Imagine living in the U.S. on $730/year.

So.

I found a grocery store receipt in the pocket litter on my dresser today.

A pound of cheese	$5.40
A pound of onions	$1.50
A box of triscuits	$3.00
A pound of rice	$1.60
A pound of blackeyed peas	$1.85	Cooking rice & beans is going to cost some fuel, though.
Meat	?	Nobody has a refrigerator, so meat is pretty rare.

Not sure what their other expenses are, but food will eat it up pretty quickly. In some countries, school uniforms must be bought and fees must be paid. I don’t know how much cooking fuel costs. Most of them travel on foot because gasoline costs. I don’t know if they pay rent (a lot of them live in housing inherited from their parents, although some of the houses have fallen into disrepair). I don’t know how much it costs to rent a stall to run a small business out of.

Anyway. That “$2-per-day-as-if-in-the-US” disappears fast.