Re: Dropping GDP/population will make us richer.

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

The GDP:Pop ratio is a global measurement.  It means the US GDP is five
times the global mean.  For the US ratio to drop to 3:1 does not
necessary mean US GDP will drop in absolute terms, but that the GDP of
other economies will rise faster than the US economy, thus the world GDP
as a whole will increase.  It is the smaller slice of a bigger pie syndrome.

The proposition is that the maldistribution is hindering global growth.

Henry C.K. Liu


Barry Brooks wrote:
> > Date: Mon, 17 Mar 2003 18:31:44 -0500
> > From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
> > Subject: Re: NYTimes.com Article: A Fiscal Train Wreck
>
>
> > ...The US has a 5:1 ratio on GDP:population. If
> > the US were to allow this ratio to drop to
> > 3:1, the US  will be richer in absolute terms.
>
>
> I don't understand how it could be possible that if
> the US were to allow the GDP:population ratio to drop
> from 5:1 to 3:1 would the US will be richer in absolute terms.
>
> If the GDP:population ratio dropped due to increased population would
> the US be richer?  Wouldn't the same amount of production with
> more people make people poorer?
>
> Maybe you have in mind reducing the GNP. How would that means of
> dropping the ratio of GNP/population make us richer?
>
> Do you mean that if we produce less that
> imports will (must) increase even more than the
> local production cuts?
>
> Barry