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|Who Has The World's No. 1 Economy? Not The U.S. by timesup234: 4:58pm On Oct 18, 2017|
Who Has the World's No. 1 Economy? Not the U.S.
By the most measures, China has passed the U.S. and is pulling away.
By Noah Smith
October 18, 2017, 6:30 AM EDT
The wear and tear doesn't help. Photographer: kurt Wittman/UIG via Getty Images
What’s the most powerful country in the world? There’s a good case to be made that it’s China.
There are many kinds of power -- diplomatic, cultural, military and economic. So an easier question to ask is: What’s the world’s largest economy? That’s almost certainly China.
Many might protest when hearing this. After all, the U.S. still produces the most when measured at market exchange rates:
But this comparison is misleading, because things cost different amounts in different countries. Gross domestic product is supposed to measure the amount of real stuff -- cars, phones, financial services, back massages, etc. -- that a country produces. If the same phone costs $400 in the U.S. but only $200 in China, China’s GDP is getting undercounted by 50 percent when we measure at market exchange rates. In general, less developed countries have lower prices, which means their GDP gets systematically undercounted.
Economists try to correct for this with an adjustment called purchasing power parity (PPP), which controls for relative prices. It’s not perfect, since it has to account for things like product quality, which can be hard to measure. But it probably gives a more accurate picture of how much a country really produces. And here, China has already surpassed the U.S.:
If you don’t trust the murky PPP adjustments, a simple alternative is just to look at the price of a Big Mac. The same burger costs 1.8 times more in the U.S. than in China. Adjusting the market-exchange-rate GDP numbers by that ratio would put China even farther ahead.
In some dimensions, China’s lead is even larger. The country’s manufacturing output overtook that of the U.S. almost a decade ago. Its exports are more than a third larger as well.
American commentators may be slow to recognize China’s economic supremacy, but the rest of the world is starting to wake up to the fact:
This doesn’t mean China's population is the world’s richest -- far from it. The countries with the highest income per person, in order, are Qatar, Luxembourg, Singapore, Brunei and the United Arab Emirates. But few would argue that Qatar or Luxembourg is the world’s leading economy -- while per-capita numbers are important for the well-being of a nation’s people, they don’t translate into comprehensive national power unless a country also has a large population.
China’s modest per-person income simply means that the country has plenty of room to grow. Whereas developed countries can only get richer by inventing new things or making their economies more efficient, poor countries can cheaply copy foreign technology or imitate foreign organizational practices. That doesn’t always happen, of course -- many poor countries find themselves trapped by dysfunctional institutions, lack of human capital or other barriers to development.
But there’s good reason to think that China will overcome at least some of these obstacles. Economists Randall Morck and Bernard Yeung have a new paper comparing the histories of Japan and South Korea -- both of which climbed out of poverty to achieve rich-country status -- with the recent rise of China. They find that China’s institutions are, broadly speaking, developing along the same path followed by its successful neighbors.
In other words, not only is China already the world’s largest economy, the gap between it and the U.S. can be expected to grow even wider. This continues to be borne out in the growth statistics -- though China has slowed in recent years, its economy continues to expand at a rate of more than 6 percent, while the U.S. is at just over 2 percent. If that disparity persists, China’s economy will be double that of the U.S. in less than two decades.
So economically, China has surpassed the U.S., and is on track to zoom far ahead in the near future. But what about military power? Here, it still looks like the U.S. reigns supreme. It spends more money on its military than China, has a larger nuclear arsenal, and -- thanks to its recent wars in Afghanistan and Iraq -- has a more seasoned fighting force as well.
But that doesn’t mean that the U.S. would win a war, if the two countries fought. A full nuclear exchange, of course, would have no winners. But in a protracted conventional struggle, there’s a good chance that China’s weight of numbers and manufacturing prowess would win out. As an analogy, consider the U.S. and Japan in World War II. At the beginning of the war, Japan’s aircraft carrier force outnumbered that of the U.S., and its navy was far more seasoned (due to Japan’s war in China). But when the war began, the U.S. greatly outproduced its opponent:
Economic Size Made all the Difference
The U.S. also had a 2-to-1 manpower advantage. When two countries of similar technology levels fight, numbers tend to tell. China has a larger GDP, more manufacturing output and four times the population. And as its recent advances in stealth technology, directed energy weapons, hypersonic missiles and other areas demonstrate, its military technology isn’t that far behind the U.S. In a drawn-out war, once the mighty Chinese steamroller got moving, it would be unstoppable.
In other words, China is now in a position similar to that of the U.S. at about the turn of the 20th century -- a formidable superpower that just hasn’t yet felt any reason to exercise its dominance. Once the U.S. woke up to the need to throw its weight around, no one doubted its primacy.
China may never make the same decision. It may choose to remain restrained on the international stage, with a modest nuclear arsenal and a light footprint in global institutions. If so, its dominance will remain a lurking, looming potentiality instead of a real and present fact of life.
But I wouldn't count on that
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by bedspread: 5:00pm On Oct 18, 2017|
OP ABEG SUMMARIZE
|Re: Who Has The World's No. 1 Economy? Not The U.S. by OmoOshodi(m): 5:02pm On Oct 18, 2017|
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Nobody: 5:10pm On Oct 18, 2017|
China of course is the new world power
|Re: Who Has The World's No. 1 Economy? Not The U.S. by timesup234: 5:10pm On Oct 18, 2017|
bedspread:everything is written out there or you can click the link to see the table. Or better yet search GDP PPP and click on the wikipedia page of list of countries gdp ppp. The only reason why America is still consider the biggest economy in the world is due to GDP nominal because every countries economy is being pegged in united states. But when you calculate the total economic output Chinas economy is over three trillion dollars more than the US.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by bedspread: 5:14pm On Oct 18, 2017|
timesup234:Maybe we say China is Unofficial the World's LARGEST Economy.... but Official it Remains THE US OF A
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by ucnwafor(m): 5:15pm On Oct 18, 2017|
Who will agree with me dat i did nt bother reading the whole espitle?
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Mazeltovscotty(m): 5:28pm On Oct 18, 2017|
Being world power is projected on two scales. The first is Economic while the second is military.
If we sum up these two points, it will be safe to say US still holds the key while China is busy playing catch up game in both
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by blackhinstan: 5:28pm On Oct 18, 2017|
who is the official bearer
|Re: Who Has The World's No. 1 Economy? Not The U.S. by eodavids(m): 5:43pm On Oct 18, 2017|
If China as a country is as Democratic, a country as United States; and if China practices capitalism like the U.S.; then I would have agreed with the op.
Considering the fact China is not fully as democratic as U.S and the fact that it practices communism, we must know that China has not gotten to the world stage where it will challenge or detrone the U.S. as the world super power.
The civilized countries of the world will readily rally behind the United States than behind China because of the above two factors I pointed above.
WHO WOULD PREFER A COMMUNIST LESS- DEMOCRATIC COUNTRY LIKE CHINA OVER A LIBRAL AND MOST-DEMOCRATIC U.S?
Note: China is simply reaping their benefit of offering cheap labour, and manufacturers are cashing in on that. But, compared to the U.S. China is still learning.
Up till today, fakeness is stii associated with the name CHINA.
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by timesup234: 5:45pm On Oct 18, 2017|
Mazeltovscotty:The US. only spend more on defense because of the over 800 military bases around the world and ongoing military engagement in seven coubtries. In actual figures the US. Defense budget is less than 200billion dollars
|Re: Who Has The World's No. 1 Economy? Not The U.S. by timesup234: 5:52pm On Oct 18, 2017|
eodavids:Well the article is from bloomberg and you can also find it on CNN. America becam a super power thanks to the destruction of western europe during the second world war. Japan has capitalism and has been in depression for decades. Japan economy can hardly grow 1%. They were projected to surpass the US. by early 90's. Communism is really working for the Chinese and we should applaud them.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by bedspread: 7:04pm On Oct 18, 2017|
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Mazeltovscotty(m): 8:29pm On Oct 18, 2017|
timesup234:you are contradicting yourself.
US spend more than 80% of its military budget on hardwares and military researches. (F-35 comes to mind). You can take a ride to DARPA website and confirm.
Have you ever seen a month that Pentagon doesn't award contract the likes of Lockheed, Northrop Grumman, General Dynamics e.t.c for one hardware or the other.
Secondly, there is need to project power all over the world giving US first-strike edge in any part of the world. This needs to be matched with fat budget.
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by timesup234: 8:41pm On Oct 18, 2017|
Mazeltovscotty:You mean F-35 that cant fly? Most of these weapons are only good on paper in reality they are overrated expensive toys
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by Mazeltovscotty(m): 9:11pm On Oct 18, 2017|
timesup234:that is a topic for another day
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Zoharariel(m): 9:49pm On Oct 18, 2017|
Thank you sire. This is my problem with all these Amerikan-fan boys who only see things from the prism of the zionist mainstream media.
They have refused to accept tha everything we have seen so far indicates that Amerika is not rational or reasonable when it comes to accepting that her days as the “almighty” dictator of the world are over.
And instead of working to keep that “hell-hole” internal contradictions from tearing apart, her leaders are absolutely obsessed with holding on to their power and “punishing” Russia, Iran & NK for imaginary, or manufactured, transgressions - Pathetic!
Libya and the fate of Gaddafi stand as a stark reminder of what the “United Snakes of Amerika” would like to do to her self-created enemies.
Syria was scheduled to undergo the same treatment but the NATO/Zionist fist was stopped in mid-swing by the latest “Sheriff-in-Town” a.k.a Mother Russia in 2015 and Amerika has been frothing at the mouth ever since.
While China continues to dominate the world “Economically” ; the unbeatable “Military Arc of Covenant” of the world rests on Mother Russia!
Y else do you think most Countries - including NATO member states - are fighting to purchase Russian Military gears? Hahaahahahahahaaa!
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by Nobody: 12:09am On Oct 19, 2017|
Mazeltovscotty:Daeylar, see here the very reason why I do not want America at our doorstep.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Nobody: 12:23am On Oct 19, 2017|
Zoharariel:America is a Paper Tiger! It can no longer fight or win wars in any meaningful way. Do you know that unlike the fearless, strong-willed, battle-hardened Russians, Chinese and North Koreans, the Americans are just weak-ass, cowardly, bugger-eating, psychologically feeble loudmouths? Americans FEAR death. America can't stand CASAULTIES. America is AFRAID of casaulties---which makes all its "technical superiority" pointless and easy to nullify in a battle against people with souls. Iraq, Afghanistan and Vietnam have demonstrated this fact quite clearly. Or can it be said that any meaningful victory was achieved in Iraq? It is even said that America BRIBED Saddam Hussein's key soldiers to save her bugger-eating cowards from the heavy casaulties that they would have otherwise experienced. What a joke!
The Americans are empty, dumb, cretinous and crass---their enemies are spiritually and ideologically unbreakable. America's ember is dying, and its hegemony is being ECLIPSED on the world stage. The Zombie can only stagger on for a little longer. America should make no pointless moves that would embarass it any longer. The propaganda it lives and survives on is the only thing that now keeps it going.
Americans are weak people. Remember what 9/11 did to their psyche? You can be sure that had Hitler invaded America instead of the INDEFATIGABLE Soviet Union, he would have won World War II.
God died, and Nietzsche was the one who "called it". America has died, just that no one has "called it" yet. The GHOST is distracting people from seeing the CORPSE.
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by timesup234: 12:56am On Oct 19, 2017|
bedspread:Just continue dreaming. What doesn't take a second to click and check. https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)
|Re: Who Has The World's No. 1 Economy? Not The U.S. by ifyan(m): 3:23pm On Oct 19, 2017|
I love topic like this, l learn a lot.
As for Economically l will go for China while in military terms it's U.S.A though Russia de look at one side.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by ifyan(m): 3:26pm On Oct 19, 2017|
Bro remember the power of DOLLAR. Imaging if most organization abandon American paper,just that
|Re: Who Has The World's No. 1 Economy? Not The U.S. by persius555(m): 3:42pm On Oct 19, 2017|
The Chinese used the population advantage to topple the Americans. One thing the Chinese have going for them is their focus to achieve set goal.
In terms of technological advancement, the Chinese are to to toe competing with the Americans. The communist nature of their system of governance is both an advantage and disadvantage.
Blockchain technology for instance, the Chinese hold 45% of this market while the Americans are busy playing old fashion capitalism in 21st century. The Americans have lost the manufacturing sector to the Chinese long ago. In terms of of patent right, the Chinese are ahead, and this wasn't so decades ago.
One area the Chinese have failed despite their huge capital reserve is R and D. The Americans are way ahead while the Chinese are playing catchup. This can be attributed to the communist influence on their economy.
Another advantage the Americans have is the long term global influence that its banks and financial system has.
This plays out mostly when Washington uses its economic hammer on perceived enemies (Sudan and Iran can attest to that). The Chinese know that the western and European countries play a key role in this regard, hence their continued interest to solidify relationship with these countries.
As for military, the country with the strongest manufacturing capacity will definitely win this one.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by cstr1000: 4:04pm On Oct 19, 2017|
ZandhaZaraZ:The fear of death is not a bad thing. It shows our humanity.
An American has more to lose in this life than a Chinese or a ruskie under dictators. If you think I am lying, go to the embassies and compare the immigrant traffic.
The love of life and freedom is why the USA is numero uno.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by cstr1000: 4:12pm On Oct 19, 2017|
persius555:The US has gone beyond manufacturing, though Trump wants to bring it back by reducing taxes and bringing back US companies looking for cheap labour in china back home.
Anybody can manufacture. It is not difficult especially with cheap labour. The difficult thing is creating the intellectual property which is a product of innovation.
If the US and china were to go to the war, the US government would immediately enforce the patriot act compelling all US manufacturers like Apple, HP, TESLA, DELL, e.tc. in china to come back home immediately.
And that would severely cripple china as the world's manufacturing giant to a very very large extent.
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|Re: Who Has The World's No. 1 Economy? Not The U.S. by Nobody: 4:21pm On Oct 19, 2017|
cstr1000:I get what you're trying to say, but it makes the American Military weak, inefficient, and unable to hold its own in any largescale Military confrontation that drags on for too long.
Why do you think America is usually reluctant to put boots on the ground in any war-ravaged zone involving NATO participation? It's because of the fear of casaulties, since it makes direct attacks on American targets easier and the enemy is then availed the chance of taking hostages from among ambushed American Military personel. The American people do not have the psychological strength and spirit to complement the enormous might of their unprecedented fire power.
With this weakness, it wouldn't take much for a united people with a strong will-power to nullify America's technical superiority in certain areas in the field of battle. The more casaulties inflicted on the US Military, the more America's wars become unpopular with civilians at home - their Tiger like enemies can always take advantage of this to severe American tentacles and make them look powerless.
By the way, @emboldened in indigo, I'm sure you mean love for AMERICAN lives and AMERICAN freedom, 'cause there's absolutely no way the people of Libya, Afghanistan, Iraq and Vietnam would agree with your statement, if that isn't what it means.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Daeylar(f): 4:21pm On Oct 19, 2017|
ZandhaZaraZ:Let me look at it
|Re: Who Has The World's No. 1 Economy? Not The U.S. by cstr1000: 4:29pm On Oct 19, 2017|
ZandhaZaraZ:Fear of Death does not make you weak. It means you have a lot to lose.
And the US is a democracy, parents don't like their kids going to fight foreign wars, and so the US politicians are wary of the backlash.
And besides, Why should they risk their lives when they have hundreds of reaper and predator drones that can do the Job from the sky?
Nobody likes a long conflict. The soviet union ran away from Afghanistan and disintegrated into pieces after a long conflict there that sapped men and resources.
Believe me, with US resources and tech, she can survive long conflicts than any country in the world.
Worse come to worse, drones will take over. Which country in the world has the resources to match that?
|Re: Who Has The World's No. 1 Economy? Not The U.S. by cstr1000: 4:31pm On Oct 19, 2017|
ifyan:And use what as the alternative?
Even Russian thieving politicians steal in dollars.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Nobody: 4:37pm On Oct 19, 2017|
cstr1000:That's the entire point, bruv! It's still a weakness! America is holding back because it has THE MOST to lose. That's exactly what I'm talking about. In the typical Hollywood movie, villians can get at an invincible hero through his family and loved ones - THEY ARE HIS WEAKNESS. The same logic applies here.
As for the emboldened, I'm sorry, but I honestly do not know enough to have that debate with you. I hope you understand.
By the way, I edited my post. Check again.
|Re: Who Has The World's No. 1 Economy? Not The U.S. by seunny4lif(m): 6:33pm On Oct 19, 2017|
timesup234:Even Israel government that got the F35 for free self.They are complaining about it and the Canadian government rejected the overrated flying coffin
|Re: Who Has The World's No. 1 Economy? Not The U.S. by Deeldorado: 7:17pm On Oct 19, 2017|
China's GDP is still some distance away from US GDP when measured in nominal terms but slightly higher than the US GDP on purchasing power parity basis (because prices are relatively cheaper in China compared to the US, so a dollar in China is more valuable than in the US because it can buy more things than you could get with it in the US).
Overall, China has made immense progress as a developing country but still has a long way to go to catch up with the US. But if they maintain the current pace of growth and ensure that the benefits of growth are well distributed, they are on the right track to catching up in terms of development. You have to understand the real difference between a developing and a developed country so you won't quote me because I called China a developing country.
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