China’s Economy is Over the Hill and Will Not Pass the USA in GDP: They forgot to mention GDP represents the total value of goods and services produced within a country's borders, but it doesn't account for how that income is distributed among the population.

submitted by yaiyen from (nextbigfuture.com)

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[–]kingsmegLiberté, égalité, fraternité 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

LOL!

[–]CrazyjanecreepyjeffReality Monger 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Speculation like this is as useful as Nate Silvers 2016 presidential prediction.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (2 children)

Also China doesn't have a trade deficit, or $31T in national debt

[–]yaiyen[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

National debt is not important when you control the printing machine and nearly every country want dollars.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

National debt is not important when you control the printing machine and nearly every country want dollars.

Where do you think inflation comes from, its pretty important and definitely has consequences. As fast as they are printing money, they are still spending it even faster than they can print it without totally collapsing the economic system - as evidenced by the fact that we have record inflation and the national debt is STILL rising despite all the money printing. The system is strained to the breaking point because printing money to compensate for overspending is wildly unsustainable and has a price.

You are correct that forcing other countries to buy our dollars to trade ameliorates some of this - inflation would be much worse if we weren't offloading some of it onto other countries, but even this is no longer enough to keep us out of serious trouble

[–]yaiyen[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

High GPD also don`t mean that people quality of life is good

[–]yaiyen[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

China will NOT pass the US economy in exchange rated terms. China’s population is already declining and the working age population will shrink substantially. The US economy was $25.5 Trillion > in 2022 while China’s was 121 Trillion Yuan 2022 (US$17 trillion). China is 48% below. Losing working age population with some rural replacement means there is no 1-3% per year boost in productivity from increasing working age population and urbanization.

The US has generation Z emerging as economic demographic driver for the next 10-15 years. The Best case China picks up 2% per year but more likely holds even or falls further back. China median age going from 37.5 to 43 from 2023 to 2030. This is like Japan’s median age shift 2002-2009. China would need the US dollar to collapse for it to pass the US GDP on an exchange rated basis. China will want to keep its currency weak by design or unintentionally.

China’s overall economy is larger than the US on a purchasing power parity basis. It is about 1.2 times bigger than the US. China now might get to 1.3 to 1.4 times bigger than the US economy and then peak at that level on a purchasing power parity basis.

[–]Centaurea 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

The US has generation Z emerging as economic demographic driver for the next 10-15 years.

They say that like it's a good thing. Whoever wrote that has no clue about the reality of Generation Z's lives.

In fact, it sounds like the author may have no clue about regular Americans' lives in general.