Zero-point-two trillion dollars: that's the gap that now separates the American and Chinese economies, with China on the bigger side.
That's according to the International Monetary Fund (the IMF) which has released the world's latest GDP stats to the glee of number-crunchers and data geeks everywhere. That's right, the United States has dipped to the #2 slot in the global totem pole, the first time it has been there since the administration of Ulysses S. Grant in the 1870's.
We should be clear: this is "purchasing power parity" GDP. Because the cost of living in China is cheaper than in the US (thank you, 6 kuai Lanzhou noodles) the same amount of money can get you more in China than the US (well, duh.) So when the IMF controls for the low prices, BAM! the Chinese economy wins.
According to Market Watch, "as recently as 2000, we [Americans] produced nearly three times as much as the Chinese." My, how times are changing. (Also, if you want a good cringe, read the comments on the Market Watch article to see how this is all "Barack HUSSEIN Obama's" fault.)
These economics certainly matter, but this isn't some kind of existential tipping point (no matter what the commenters may say.) The big kahuna, of course, will be the day - if it comes - when China surpasses the United States in GDP in per capita terms. While some may see this as inevitable, it's far from a clear shot: as Quartz says, as the Chinese economic growth begins to level off, there is a "long, painful, Japan-style stagnation that likely awaits it as a result."
We'll see what the commenters are saying then. Maybe blaming Jeb HUSSEIN Bush?
0 User Comments