The Flinchum File

Thoughtful Economic Analysis and Existential Opinions
Subscribe to the Flinchum File
View Archives

We’re # 2 !!!

Was it yesterday or even today?  Maybe, it will be tomorrow.  We know it will be any day now.

In 2013, economists estimate the global GDP, for the entire world, was $101.8 trillion.  The United States represented 16.5% of that total.  China represented 15.9%.  However, the size of their economy is expected to eclipse our economy this year.

Does that really mean anything?  Some argue that GDP per person is much more important.  The U.S. has 4.4% of the world population, compared to a whopping 19.1% for China.  This drives down their GDP per person.  In the U.S., it is about $54 thousand, easily eclipsing China at only $12 thousand.

Maybe size doesn’t matter, but I do think it means China can afford more aircraft carriers as their economy gets bigger!

It is also interesting that income inequality is increasing in both nations but for different reasons.  In China, this is due to uneven and arbitrary industrialization.  In the U.S., this is due to reasons that apolitical people cannot discuss.