On December 7, the Financial Times published an in-depth analysis article that provided a detailed comparison of the Chinese and US economies from a purchasing power parity perspective. According to the article's calculations, at about the same time that Trump put forward the slogan of "Make America Great Again", China's GDP has quietly surpassed that of the United States. Today, China's economy is 22 percent larger than the United States in purchasing power parity terms.
The article further notes that despite the fact that the U.S. economy achieved an impressive 5It's an annualized growth rate of 2%, but when we take the US economic data for November and use the market exchange rate to convert the US gross domestic product (GDP) into euros or the yuan, we get a shocking result – the US economy contracted by about 30% on an annualized basis in November. The main driver of this contraction was the appreciation of the US dollar by nearly 3% during the month.
The article also emphasizes that a basic requirement for international comparisons is that domestic and international data can produce similar results. This is why the economics profession has introduced the concept of purchasing power parity (PPP). PPPs aim to make a relatively fair (albeit not perfect) comparison of goods and services that money can buy. Through purchasing power parity, we can more accurately measure the size of the economy and the standard of living of people between different countries.
In this regard, some netizens said that GDP is a measurement indicator, but there is no need to make an absolute comparison. I live in the countryside and my family is thirteen a year, my relatives live in the county and the whole family is 200,000 a year (the same number of people), relatives will play mahjong and cards, the expenses are a little bigger, sometimes his family owes some money, but my family does not owe money, and there is a little balance. Besides, a country's GDP is higher than ours, but he owes a lot of debts, because he is messy and does bad things, and he is not afraid that he has a lot of money, isn't it?
Some netizens also said that there is some truth in the article, and now the GDP comparison between China and the United States is always calculated in US dollars. And the dollar in the United States can change at will like a Rubik's cube in the hands of a child. If the GDP of the two countries is calculated in RMB, the data comparison will definitely be different.
Some netizens said that they believe that such a "PPP" accounting method is credible. For example, how much does it cost us to build a "J-20" and the United States to build an "F22"?A J-20 costs 700 million yuan, while an F22 costs 15-3.Between 2.1 billion US dollars, it is calculated at 200 million US dollars, and the price of one F22 can build two J-20s. In the same way, our 055 drive to our daily necessities, etc., can be seen that the purchasing power of the "RMB" is more than twice that of the US dollar, or that our prices are less than 1 2 of the US price. In this way, Lao Mei still lives under the ** of my high-quality and inexpensive items.
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