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2025-12-13T13:25:13+0100

Average income is intentionally skewed

This is a post about a topic I probably have no idea about. It might be retarded.

Well, this one is simple. The crux lies in generalizing income of citizens of a country as an average, not as a median. The average income is commonly referred to as ‘majority’ in various arguments, and I think it’s usually done very intentionally.

There’s a high chance that your country has a law that establishes some minimum wage. Let’s say it’s 1000 of currency X - 1000X.

This obviously means, there’s pretty much no way for someone to earn less than this. This gives us the absolute minimum value. We can’t go lower than this.

Now, of course, there will be people (outliers) that make more than this. Maybe because their profession is scarce, very important, or some other reason - these people make 4000X.

This is by no means an upper bound. There are always millionaires (which for some reason don’t seem to affect the average earnings of countries in statistics? why?), but let’s say 4000X is as much as you can ever make.

The argument I’m going to make presents itself in the clear - there’s never a situation when a country’s income calculated by average represents the actual majority of people, and it’s always going to be way higher than what an average joe makes.

You could say that it’s basic math/economics and everyone knows this. Well, that’s for sure. If everyone realizes, why are wages so commonly presented as averages? I’m not going to explain this.

I would argue that even median will skew the data and wages should be calculated via mode - simply choose the value that appears the most often in the dataset - but you’ll NEVER find this, anywhere, ever.