China Just Overtook The US As The World's Largest Economy

[calyco]

Supposedly its not accurate data, but I guess what is coming out of China?

http://www.businessinsider.com/china-overtakes-us-as-worlds-largest-economy-2014-10

Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.
Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen.

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

The simple logic is that prices aren't the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it's not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist's Big Mac Index is a great example of these disparities.

So the IMF measures both GDP in market-exchange terms and in terms of purchasing power. On the purchasing-power basis, China is overtaking the US right about now and becoming the world's biggest economy.

 

[Jaskalas]

Given their population, they will eventually be many times our size.

 

[fskimospy]

http://www.businessinsider.com/china-overtakes-us-as-worlds-largest-economy-2014-10

This was mentioned in a previous thread. Saying that an economy is the largest in the world based on PPP measurements can be highly misleading. PPP is primarily used to be able to make more accurate comparisons between quality of life, etc.

For example, it doesn't matter if the average haircut costs $25 in the US and $1 in China. You got a haircut either way, so PPP helps treat them similarly. In that case PPP tells you something very useful. The thing is, goods that are traded internationally don't care about what your cost of living is. A car exported from Germany costs... say... $40,000 regardless of where you live. While China and the US might be equal in PPP terms, that car costs 1,600 local haircuts in the US and 40,000 local haircuts in China. Now who is the larger economy?

Both measures are useful, but saying that an economy is larger than another based on PPP is far too simplistic.

Also, China has quadruple our population. If everyone in China earned the minimum wage in the US their GDP would be larger than ours.

 

[Newell Steamer]

Thanks Obama.

 

[CLite]

this is old news and already laughed at for using PPP

 

[dmcowen674]

Thanks Bush

 

[Matt1970]

Thanks Bush

15 years of Presidency and counting.

 

[Jaskalas]

Thanks Obama.

Thanks Bush

Thanks Nixon.

 

[Newell Steamer]

What a bunch of sillies,.. we all know everything and anything is caused by Obama!

Except any good news - we totally know other people, presidents and yes, even the mailman is responsible for any good news.

But, NEVER Obama.

 

[alcoholbob]

1870 -> 2014. 144 years is a decent run.

 

[OverVolt]

China lies about all their economic data. Bad is neutral and positive is overblown. 11% growth is more like 7% growth, shit like that.

They build a bridge but did such a shitty job it falls down and they build two bridges. What a great boost to GDP, two bridges in a year. Except all they did was make only 1 crossing in reality. A shitty one that will probably fall down next year. Thats China in a nutshell.

 

[rudder]

meh.... when they start making heavy equipment (Caterpillar), jets (Boeing), cars (anyone manufacturer)... that aren't total pieces of shit... then I will worry.

 

[thraashman]

Thanks Nixon.

Thanks Woodrow Wilson!

 

[Londo_Jowo]

meh.... when they start making heavy equipment (Caterpillar), jets (Boeing), cars (anyone manufacturer)... that aren't total pieces of shit... then I will worry.

http://en.wikipedia.org/wiki/Caterpillar_Inc.#Manufacturing

Caterpillar products and components are manufactured in 110 facilities worldwide. 51 plants are located in the United States and 59 overseas plants are located in Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, (Chennai) Indonesia, Italy, Japan, Mexico, the Netherlands, Northern Ireland, Poland, Russia, Singapore, South Africa and Sweden.

 

[ctbaars]

No, Newell Steamer, you are wrong again. It's Bush's fault.
Oh wait. You were being facetious? Then you do agree, it's Bush's fault.

 

[iGas]

Thanks Woodrow Wilson!

What Wilson has to do with Communist China?

IMHO, Nixon and mainly Kissinger was the catalyst for Communist China growth and domination.

Here are images of Nixon and Kissinger took the bait, and sold out America.

The current situation out to happen, because the American populous was sleeping while America was sold out under them by the leaders long ago.

 

[teejee]

meh.... when they start making heavy equipment (Caterpillar), jets (Boeing), cars (anyone manufacturer)... that aren't total pieces of shit... then I will worry.

Chinese cars are progressing rapidly. Still not as good as the competition from US/ EU/Japan, but there is no reason they won't be competitive in near future.

 

[fskimospy]

Why do people think that China being more prosperous is a bad thing?

 

[iGas]

Why do people think that China being more prosperous is a bad thing?

Prosperous is not a bad thing, however greed will come along with it and they will do anything to support their new found life style.

They already having border/natural resource disputes with pretty much all of their immediate neighbors, as well as other smaller nations that do not share borders with them.

 

[fskimospy]

Prosperous is not a bad thing, however greed will come along with it and they will do anything to support their new found life style.

They already having border/natural resource disputes with pretty much all of their immediate neighbors, as well as other smaller nations that do not share borders with them.

Sounds like you're saying that China becoming more prosperous is a bad thing.

 

[Jaskalas]

Why do people think that China being more prosperous is a bad thing?

China will assume the mantle of a Super Power and world leader. They will have a lasting impact to shape the future. They could be at odds with our vision of the future.

Their newfound power could become a physical threat of violence against others. They are quite infamous with territorial disputes. Imagine if they started acting like the United States and got involved in overseas adventures!

 

[fskimospy]

China will assume the mantle of a Super Power and world leader. They will have a lasting impact to shape the future. They could be at odds with our vision of the future.

Their newfound power could become a physical threat of violence against others. They are quite infamous with territorial disputes. Imagine if they started acting like the United States and got involved in overseas adventures!

All those things are possible, but generally increased economic prosperity is wonderful news for everyone. China being better off is very likely to make us better off as economics is not a zero sum game.

 

[Svnla]

At least the US does not have these problems like china:

http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/


http://www.cbsnews.com/videos/nobodys-home-the-ghost-cities-of-china/


http://www.economist.com/news/china...ments-remedies-are-potentially-disastrous-all


http://www.cnbc.com/id/101101030



http://www.nytimes.com/2009/04/11/world/asia/11china.html?_r=0


World power? Ha!!!

Why do people think that China being more prosperous is a bad thing?

I don't care if china is rich or poor but china is acting just like German Nazi in 1930's. And we all know what happend.

 

[DucatiMonster696]

At least the US does not have these problems like china:

http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/


http://www.cbsnews.com/videos/nobodys-home-the-ghost-cities-of-china/


http://www.economist.com/news/china...ments-remedies-are-potentially-disastrous-all


http://www.cnbc.com/id/101101030



http://www.nytimes.com/2009/04/11/world/asia/11china.html?_r=0


World power? Ha!!!





I don't care if china is rich or poor but china is acting just like German Nazi in 1930's. And we all know what happend.

Like NAZI Germany? Really?? That assertion just has no actual real context to justify it as fact. A more apt comparison would be to compare China to other Western powers (or maybe even Japan itself) during the 1900's as they rose up and went on to grab resources around the world and assert their own interests.

As for the debate in regards to whether the conclusion of China overtaking the US economy goes,....Well we can all agree that even if you don't think the analysis is correct, it will be correct eventually. 1.3 billion people in a nation that is slowly turning into the largest domestic consumer market is going to eventually overshadow the US even if you dispute the conclusion drawn from this article and its methodology in reaching that conclusion. I.e. its not a question of if, its a question of when if you disagree with this article.

 

[DucatiMonster696]

All those things are possible, but generally increased economic prosperity is wonderful news for everyone. China being better off is very likely to make us better off as economics is not a zero sum game.

Wait so wealth generation, along with other people (or groups of people) being wealthy is not a zero sum game? OMG. Will wonders ever cease. lol