Limitations of Average Income and Per Capita Income
The income distribution cannot be inferred from per capita income. The majority of wealth could end up in the hands of a select few. Better than a prosperous nation with an unequal income distribution is a poor society with an equal distribution of wealth. The numerous facilities that affect the quality of life, like educational and medical facilities, are not considered when calculating per capita income. It is impacted by population density. Even in countries with high national incomes and significant populations, per capita income will be low.