Thursday, May 1, 2014

China's Economy Surpassing the U.S.?

Well, it depends...

 
 
Beijing traffic jam, paviavio.wordpress.com
 
 
China's Economy Surpassing the U.S.?
 
 
What's the story behind reports in the past few days about China's economy surpassing the U.S.?

Well, "let’s assume, for the sake of argument, that China’s economy is on the verge of surpassing the U.S. economy in size. (By one measure, anyway—purchasing power parity as calculated by the World Bank’s International Comparison Program.) What does it mean?," asks Peter Coy writing on today's businessweek.com.

Start with what it doesn’t mean, he suggests.

"It doesn’t mean China is rich. All that gross domestic product has to be spread around more than a billion people. On a per-capita basis, the highest-income country in the world in 2011 was the oil-soaked and lightly populated Gulf monarchy of Qatar, at $146,000 per person. The U.S.," (as, the chart below shows), " was No. 12, at just under $50,000," he reports.

For more:  http://www.businessweek.com/articles/2014-05-01/the-u-dot-s-dot-is-big-and-rich-dot-china-is-just-big
 

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