Sunday , December 15 2019
Home / Real-World Economics Review / China has hugely outgrown the U.S. under Trump

China has hugely outgrown the U.S. under Trump

Summary:
From Dean Baker This is one in the “whose is bigger?” category; which country has added the most to their GDP over the last three years. There is not any particular reason anyone should care about this, except that Donald Trump has made a big point of touting something about how no one says China will soon be the world’s largest economy anymore. In fact, China’s economy surpassed the U.S. economy in 2015, using the purchasing power parity measure of GDP. This measure, in principle, uses a common set of prices for all goods and services for all countries’ output. Most economists consider it the best measure of the size of a country’s economy for most purposes. China has continued to grow much faster the United States, meaning the gap between the economies is growing. China’s economy is

Topics:
Dean Baker considers the following as important:

This could be interesting, too:

Editor writes The social environment as a cause in economics

John Quiggin writes No takers for a nuclear grand bargain

Lars Syll writes 2019 ‘Nobel prize’ reveals the poverty of economics

Dan Crawford writes Open thread Dec. 13, 2019

from Dean Baker

This is one in the “whose is bigger?” category; which country has added the most to their GDP over the last three years. There is not any particular reason anyone should care about this, except that Donald Trump has made a big point of touting something about how no one says China will soon be the world’s largest economy anymore.

In fact, China’s economy surpassed the U.S. economy in 2015, using the purchasing power parity measure of GDP. This measure, in principle, uses a common set of prices for all goods and services for all countries’ output. Most economists consider it the best measure of the size of a country’s economy for most purposes.

China has continued to grow much faster the United States, meaning the gap between the economies is growing. China’s economy is currently more than 25 percent larger than the U.S. economy.

The graph below shows the growth in the two countries’ economies since 2016.

China has hugely outgrown the U.S. under Trump

Source: International Monetary Fund.

As can be seen, China’s growth has been more than twice as large as the growth in the United States since Donald Trump came into the White House. In other words, we should put Donald Trump’s claim that his policies have somehow secured the United States’ status as the world’s leading economy alongside his copy of President Obama’s Kenyan birth certificate.

Dean Baker
Dean Baker is a macroeconomist and codirector of the Center for Economic and Policy Research in Washington, DC. He previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University. He is a regular Truthout columnist and a member of Truthout's Board of Advisers.

Leave a Reply

Your email address will not be published. Required fields are marked *