Re: Re: Expect the Chinese to Overtake America

[Doug Henwood <dhenwood@xxxxxxxxx>]

Jim Devine wrote:

> It's passed Japan in terms of _per capita_ income (or some measure
> of the actual benefits of the economy per capita)? I doubt it. How
> does he measure this? Further, if it's done using current exchange
> rates, China's status could fall drastically due to a devaluation.

These comparisons are evidently done with PPP. In 1999, China's
market GDP was 11% of the US, and its per capita GDP at PPP was also
11% of the U.S. Aggregate GDP using PPP, though, was 51%. In 1976,
the year of Mao's death, its market GDP was 8% of the U.S., market
per capita was 3%, and PPP per capita was 13%. That rise from 13% to
51% in aggregate PPP GDP seems a little incredibly steep, no?

Doug