Why will the US remain the largest economy?
In 2022, the United States was still the world's largest economy, with $7.5 trillion more than China in terms of nominal GDP, according to the World Bank. Since a few years ago, the leaders of the Chinese Communist Party have been doing their best to present the country as the next great power; they promote this idea as inevitable. According to the narrative of the Chinese leadership: the East rises and the West falls. However, there are several reasons to think that it is difficult for China's economy to surpass that of the United States, mainly because it is unlikely to continue to grow at the pace of the last decades, and this in turn has several reasons. So the questions are: why is China not likely to be the largest economy as predicted; why is China moving away from the path that lifted it out of poverty? And, Why is part of the rest of the world now distrustful of China?
Music:
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#economicsnation #china #unitedstates
China should adopt a free market, but keep its land in public ownership. That way, it can abolish all taxes and just rent out land for revenue. A Georgist China.
There’s so many things wrong with this statement that makes its reality impossible
Do these people even take themselves seriously?
We will always remain #1, because when we're really not we'll just fudge the numbers.
Exactly. Real Chinese national GDP is more around 16-17 trillion dollars (China says their gdp is 22-23 trillion) compared to the United States economy of 30 trillion dollars.
Well, how true is the US econony anyway as reported? They kept printing as much money as they want. And to compare Japan to China is just as dumb as it sounds.
China prints WAY more money than U.S.
It's ok to not know what you're talking about. But it's not great to advertise it.
@@mignik01 dont need to "advertise" facts.
@@naivoj122 Like I said. It's fine to not know what you are talking about. Often the first hint is that they start talking about "facts".
@@mignik01 same to u as well. Let the mainstream media keep u in the well like a frog.
Yes
Recycling of other channels' info by one of the black-and-white-logo channels.
Good to reassure yourself. Stay easu
Lol. China is already the largest economy in the world by GPD PPP terms. There are two metrics of comparing economies. Get educated...
fake chinese ccp cooked up information
PPP is purely domestic, and it doesn't take into account the quality of goods and services produced, which is why it is rarely ever used on the international stage
You should clearly “get educated” if you don’t know when to use PPP correctly. PPP is not used by economists to measure the total size of economies for a plethora of reasons, but rather only individuals relative standard of living, compared to similar other economies and domestic regions. First off, PPP is mainly based on the prices of non-tradable or low-value consumption goods such as haircuts or food in a domestic economy, which while important doesn’t take into account more meaningful industries. Secondly, PPP assumes that the quality of goods or services are the exact same, for example it assumes that a factory in Nigeria and China produce the same quality goods, with Nigeria having lower labor costs,which dramatically inflates Nigerias economy. For these reasons and way more, is why you don’t hear any credible economist claim that China is the largest economy in the world, or that according to PPP people in Iran enjoy the same standard of living as a China; which is complete bullshit. Even JP Morgan which used to pioneer PPP calculation has since stopped using it, as it’s a more measurement for how large national economies are.
Exactly, GDP gives a false idea by taking as profit what is in fact a debt, like when people pay rent. PPP is the only way to properly evaluate an economy.
@@pmnichols10 Again, PPP doesn’t actually take that into account for the most part, and it still adds debt. PPP is a tool to convert market exchange rates to price adjusted GDP. The problem is that the basket of goods that they measure are generally non-tradable services only for domestic economies, which overly inflates the GDP of poorer countries, and doesn’t take into account the quality, nor actual demand or value for these things. If you’ve studied economics, you’d know that PPP is good for seeing domestic and per capita standard of living between similar economies (both poor or both rich) But not to measure the absolute value or size of an economy, which is why you don’t hear economists say that China is the largest economy, nor that Iran somehow has the same standard of living as China.
History has shown that economic efficiencies in a autocratic or communist state is inept and will never reach a true competitive economic system where resources are supplied to take care of consumer demand in a efficient manner. Communism, or autocracies, cannot succeed, "because it abolishes free markets so that officials have no market prices to guide them in planning production." Price competition determines production efficiency. Without this competition, countries fall behind in the battle for economic survival. The Soviet Union and China are perfect examples. Russia has fallen into the same trap. To correct this necessitates a change in 'political-economic paradigms' to a free and open marketplace.
Rubbish. If you look at trade balance 2023 you will realize which country has the largest trade surplus and which has the largest trade deficit. As for debt. The debt is doable if your country is export-oriented. Like Japan, where it has 250% debt per gdp with highest median age yet their economy is still doable. Staggering yes, but still doable. The U.S on the otherhand, it will be like Lebanon.
US will not remain the largest economy, it is a dying economy. And it will eventually die, the only thing is that matters is when. This vid focuses on China only, just like if authors knew that US is weak and cant offer any "structural" strenghts to boost their growth. And yes: US have problems with real estate, and the RE bubble constantly grows, like a ticking bomb. Aging society is also a problem for US (and generally western world) and immigration is not a solution to workforce supply. Actually it is something that further damages the society, and american society is already in terrible shape. Just to remind you: US still has problem with accepting immigrants from hardworking societies (like central european) but happily takes large quotas of "problematic" immigrants that are likely to live in ghettos. And talking about Xiaoping ideological problems... buahaha... the same thing is a problem with US but on larger scale. Diversity always above quality - isnt it an ideological, pretty much communist thing?
Are you a bot or just brain dead? First let’s go over demographics - The US has the best demographics out any major economy. This is partly due to immigration, but also due to a relatively high birth rate, especially throughout the 2000s. Even with immigration, the US doesn’t face the same problem with assimilating those migrants, as most are from predominantly Christian, and European-influenced regions such as Latin America or Eastern Europe. Second let’s go over real estate and productivity compared to China - While it is true that the US has a semi-inflated housing market, it s nowhere near a bubble, nor near the level of China’s. At its peaking during 2008, real estate accounted for 7% of GDP, whereas it is at ~5% now. Compare this to China in which it is estimated at 30% of GDP. Most of China’s growth since roughly 2015 has been solely investments, with productivity averaging below 1% growth throughout the 2010s, compared with 2-3% in the US, which already started ahead.
yo i liked your comment
HAHAHA. So far the best by far when compared to....everyone else. Yes we have problems. Demographics aren't as bad as china, and immigration will mitigate a lot. Nice to identify yourself as a dirt bag with your comments about immigrants. You seem like an observer trying to stir up trouble, and then you have a stooge "agree" with you. Standard ruzzian misinformation campaign.
Lol illiterate US hater spotted Take a look at China real estate compared to US