President Hu Jintao heads back to China on Friday, his state visit to Washington having underscored his country's status as the United States' top economic rival — or even its superior, by one economist's assessment.
By traditional measures of gross domestic product — the value, in U.S. dollars, of total goods and services produced — the size of the U.S. economy is $14.6 trillion. China's GDP is only $5.7 trillion.
But if China's economy is assessed according to its "purchasing power," it may be a different story. "In a developing country," says Arvind Subramanian of the Peterson Institute for International Economics, "the amount it would cost you to get a haircut or go to a doctor would be much cheaper than what it would be in the United States.
When the size of the Chinese economy is measured by how many haircuts or doctor visits it would buy, the numbers change. "If you make that purchasing-power correction," Subramanian says, "I find that the Chinese economy is $14.8 trillion, which is larger than the American economy."
To read much more or listen, click on:
http://www.npr.org/2011/01/21/133100774/is-chinas-economy-already-no-1
+++++++++++++++++++++++++++++++++++++++++++++++
SEARCHING FOR RELIABLE SOURCES,
not hearsay, rumors, or falsehoods.
By traditional measures of gross domestic product — the value, in U.S. dollars, of total goods and services produced — the size of the U.S. economy is $14.6 trillion. China's GDP is only $5.7 trillion.
But if China's economy is assessed according to its "purchasing power," it may be a different story. "In a developing country," says Arvind Subramanian of the Peterson Institute for International Economics, "the amount it would cost you to get a haircut or go to a doctor would be much cheaper than what it would be in the United States.
When the size of the Chinese economy is measured by how many haircuts or doctor visits it would buy, the numbers change. "If you make that purchasing-power correction," Subramanian says, "I find that the Chinese economy is $14.8 trillion, which is larger than the American economy."
To read much more or listen, click on:
http://www.npr.org/2011/01/21/133100774/is-chinas-economy-already-no-1
+++++++++++++++++++++++++++++++++++++++++++++++
SEARCHING FOR RELIABLE SOURCES,
not hearsay, rumors, or falsehoods.
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