China Just Overtook The US As The World's Largest Economy

by **DetroitSkills** » Oct 8th, '14, 17:11

http://www.businessinsider.com/china-ov ... my-2014-10
Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.
Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen.

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

The simple logic is that prices aren't the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it's not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist's Big Mac Index is a great example of these disparities.

So the IMF measures both GDP in market-exchange terms and in terms of purchasing power. On the purchasing-power basis, China is overtaking the US right about now and becoming the world's biggest economy.

Read more: http://www.businessinsider.com/china-ov ... z3FZQfS72Y

by **DƎRDYPK** » Oct 8th, '14, 17:12

I love it

by **mdemaz** » Oct 9th, '14, 03:37

It was expected.

by **UofLCard** » Oct 9th, '14, 04:05

This was eventually going to happen.

by **Devil'sAdvocate** » Oct 9th, '14, 12:49

Your standard of living will not decline.

you'll be the exact same asshole.

by **mdemaz** » Oct 9th, '14, 13:34

That's the price you pay for wealth, you got people who live in terrible conditions.

Skid Row, Africa, China... But that's what our race is all about, trying to get ahead. Economic growth will continue to be a hot debate, but I don't see humanity ever coming to a resolve where people can be treated equally while still gaining money.

by **Josh** » Oct 9th, '14, 14:17

yeah contaminated buns :shakehead:

by **UofLCard** » Oct 10th, '14, 01:25

Calandre wrote:
Yeap
Inequality in China is amazing...
They have improved a lot in the last 20 years but there are "so many" of them that in per capita terms they will still need many more years to catch up with developed countries...

Maybe they should implement the one child rule again.

by **SliK** » Oct 10th, '14, 03:04

UofLCard wrote:
Calandre wrote:
Yeap
Inequality in China is amazing...
They have improved a lot in the last 20 years but there are "so many" of them that in per capita terms they will still need many more years to catch up with developed countries...

Maybe they should implement the one child rule again.

Maybe they should implement a no child rule.

by **shadyblogger** » Oct 10th, '14, 03:22

Interesting

China Just Overtook The US As The World's Largest Economy

China Just Overtook The US As The World's Largest Economy

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

Re: China Just Overtook The US As The World's Largest Econom

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