Why does total GDP matter so much? China has over a billion people. A much more accurate metric is GDP or even PPP GDP per capita.
Only when China has 3x larger economy than US economy will it be of the same size per capita to the U.S.
Chinese economy overtakes the U.S.’s to become the largest
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Re: Chinese economy overtakes the U.S.’s to become the largest
#12Earlier quoted context omitted.
This a good explanation, but I have to point out that for this particular example (being able to buy Frappucinos in China because they're cheaper), the opposite is true. Fun fact: Starbucks is significantly more expensive in China than in America, even if you use the currencies at their current exchange rates. Not fun fact: I live in China, and I like Starbucks.
Beijing?
I actually haven't been to a Beijing Starbucks, but in Shanghai, Hangzhou and Ningbo, Starbucks products are markedly more expensive. I imagine that for Beijing the same would be true. I suppose I shouldn't speak for China as a whole, as I haven't been to Starbucks all over the country.
Re: Chinese economy overtakes the U.S.’s to become the largest
#13> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
Frappuccinos are more expensive in Beijing than Seattle (I know, I have a habit...). Actually, many things in China are more expensive than in the states: if you want the "lower cost of living", you have to be willing to endure the "lower standard of living" that is possible in China without as much stigma as in the US. If you want a nice apartment, nice safe food, decent education for your kids, a car, medical care,…
What about compared to NY? Also, it might make sense to compare Starbucks in China to a non-us company in the US. Midn you, I understand that PPP does matter (e.g. products imported to both China and USA, such as German cars, will probably be priced lower in China than in USA precisely because of PPP difference), but nonetheless it's just one way of measuring the size of economy, not necessarily the right one.
Re: Chinese economy overtakes the U.S.’s to become the largest
#14Why does total GDP matter so much? China has over a billion people. A much more accurate metric is GDP or even PPP GDP per capita. Only when China has 3x larger economy than US economy will it be of the same size per capita to the U.S.
On a per capita basis the US is currently 10th (Qatar, Luxembourg and Singapore are the top 3).
Re: Chinese economy overtakes the U.S.’s to become the largest
#15Why does total GDP matter so much? China has over a billion people. A much more accurate metric is GDP or even PPP GDP per capita. Only when China has 3x larger economy than US economy will it be of the same size per capita to the U.S.
I like your name. I imagine, you would have signed up as legitquestion, but legitquestion was too long, correct?
-justquest :)
Re: Chinese economy overtakes the U.S.’s to become the largest
#16> These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates. So a Starbucks venti Frappucino served in Beijing counts the same as a venti Frappucino served in Minneapolis, regardless of what happens to be going on among foreign-exchange traders. > PPP is the real way of co…
This a good explanation, but I have to point out that for this particular example (being able to buy Frappucinos in China because they're cheaper), the opposite is true. Fun fact: Starbucks is significantly more expensive in China than in America, even if you use the currencies at their current exchange rates. Not fun fact: I live in China, and I like Starbucks.
Are there any local coffee shops that sever 'western' style coffee? And if so are they also more expensive than Starbucks in the US. Also what is the local equivalent of a cappuccino and what does that cost. PPP generally deals with equivalent goods and not identical goods, especially when the goods have to imported at great expense to one country.
I mean even here in Sweden Starbucks is a good 50% more expensive than your random local coffee shop, so Starbucks probably isn't the best comparison to make.
Re: Chinese economy overtakes the U.S.’s to become the largest
#17This is a ranking about PPP. There are about five Chinese persons for every American. The sum of their income will keep getting larger and so will their economy. GDP and economic output don't automatically relate to how well people live but they do relate to the influence a country has over the world.
If we care about how happy people are in their country then maybe we should look at http://www.oecdbetterlifeindex.org/ There is no clear number 1.
Re: Chinese economy overtakes the U.S.’s to become the largest
#18Why does total GDP matter so much? China has over a billion people. A much more accurate metric is GDP or even PPP GDP per capita. Only when China has 3x larger economy than US economy will it be of the same size per capita to the U.S.
Because on the global power scale it doesn't really matter if half your population is starving or not. And if you want to compare the peoples wealth, remember the one percent rule. How much richer does the US have to be for its bottom 50% to be as wealthy as The Netherlands' bottom 50%?
It's all numbers games, this number is about global economic power, the sort that could have all sorts of real (nasty) consequences.
Re: Chinese economy overtakes the U.S.’s to become the largest
#19Why does total GDP matter so much? China has over a billion people. A much more accurate metric is GDP or even PPP GDP per capita. Only when China has 3x larger economy than US economy will it be of the same size per capita to the U.S.
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Re: Chinese economy overtakes the U.S.’s to become the largest
#20Why does total GDP matter so much? China has over a billion people. A much more accurate metric is GDP or even PPP GDP per capita. Only when China has 3x larger economy than US economy will it be of the same size per capita to the U.S.
> Why does total GDP matter so much?
Matter in what sense? If you are measuring international influence, GDP probably matters more than per capita GDP. If you are measuring standard of living, per capita GDP probably matters more than GDP.