Usually, people make this statement as a way to silence the other person. "Other people have it worse, so you have no valid issues and no right to speak. Shut up."

There are people who do this ALL THE TIME to feminists. "Hey, be lucky you don't live in Saudi Arabia, where you'd REALLY be oppressed and have something to complain about", or, "Why aren't you always talking about women in Iran/Iraq/Saudi Arabia? You privileged, uppity American females should shut up and live with the American status quo."

Interesting that when black activists discuss police brutality and systematic oppression of blacks in America, no one says, "Hey, be lucky you're not starving in Africa! Quit complaining!"

I agree, it's INCREDIBLY insulting, dismissive and silencing to another person to tell them their problems don't matter compared to someone else who has it "worse". This isn't a contest. It's not like only the worst off people on the entire planet deserve the prize of pity, empathy and love. Everybody is valid. No conditions.