I agree with Mr Zhang. Americans like to use GDP as a measurement of a country's economic performance. It is a myth. PPP is the true value of a country's economic performance and richness. Never mind. Let the US sleep peacefully. Like Deng XiaoPeng once said : we try not to shine too brightly.
@IA100KPDT2 жыл бұрын
A huge percentage of their gdp is in healthcare and legal services. Meaning, they need more people to be sick and the sick to pay exorbitant medical fees to make their gdp looked good. Not forgetting to sue one another over little things, as it adds to their gdp too.
GDP = Consumption + Investment + Gov spending + Net export-import, Dr. Chang needs to address this equation.
@yanchen56982 жыл бұрын
When there are supply chain problems or no goods to import, and you have lower industrial investment + government spending, then what is the consumption? Using dollars as toilet paper? Goods don't just grow on shelves.
USA GDP is computed by the expenditure method. So the higher private and government spending, the higher the GDP regardless its sustainability, its impact on debts and that Americans are paying for highly inflated medical, legal, accounting services etc and high military spending which do not add value to living standards. Whereas China GDP is computed by the production method, which tends to be more conservative. China also has a big shadow economy which is not reflected in its GDP. Hence USA GDP does not translate into significantly higher standard of living vs China taking the above into consideration and the fact that China has a greater Purchasing Power Parity and more even income distribution.