Monday, May 12, 2014
A couple of weeks ago, there was a stir about China surpassing the U.S. in GDP some time this year. I recall trusted economists telling me "it's not going to happen" and was, at first, taken aback.
I read more.
The Wall Street Journal article "China's Economy Surpassing U.S.? Well, Yes and No" was a good read to explain how the measure of economies can tell a different story.
The fact that China's purchasing power is growing is a sign that they are growing their middle class. This is predictable and, given the declining working age population, is likely to continue.
The article also tackles per capita economic measures. China ranks 99th and the U.S. is 12th in that regard. Interesting.
Bottom line: Don't give up on the U.S. quite yet.