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RE: Will China Overtake The United States?

in #life6 years ago

Maybe they surpass the US in GDP, but does that really matter? First, there's serious questions about the validity of Chinese statistical values with many provinces overstating their values to appease leadership.

https://www.stlouisfed.org/publications/regional-economist/second-quarter-2017/chinas-economic-data-an-accurate-reflection-or-just-smoke-and-mirrors

Second, China has a population that is over four times that of the US. If the GDP's were equal, that still only leaves the average Chinese individual at 1/4 the level of the average US citizen in terms of GDP per capita. If the Chinese are able to increase their productivity even modestly, they would be on par with US productivity in aggregate, but still much poorer as individuals.

Third, GDP is such a poor measure of productivity and it is unfortunate that it has become the standard, national economic measure. It has many troubles, perhaps the most significant being that government expenditures are counted equally with consumption and investment.

https://mises.org/library/how-gdp-metrics-distort-our-view-economy