Re:Why America's economy is soaring ahead of its rivals
by MichaelZuo on Thursday December 05, 2024 @09:23AM
(#42328483)
Perhaps growth rates in GDP PPP would be even better for comparing between countries?
For example in the case of Ireland people might be misled if they looked only at nomial GDP growth…
Re:Why America's economy is soaring ahead of its rivals
by crawshaw on Thursday December 05, 2024 @02:47PM
(#42331915)
Growth is only valuable in the long-term, and in a long-term analysis PPP (which I generally find very hard to reason about) is going to wash out, just as the fraction of the economy measured by GDP washes out. The non-linear function dominates.
Year-to-year, the difference between 2.5% and 5% doesn't matter, which is how people convince themselves to downplay growth. But they are two radically different worlds for your grandkids.
Re:Why America's economy is soaring ahead of its rivals
by MichaelZuo on Thursday December 05, 2024 @03:13PM
(#42332217)
Huh? Why wouldn’t that matter?
A 250 basis point difference in growth rate is enormous for pretty much every industry in the US.
That’s hundreds of billions of dollars extra circulating in tne economy.
However, change in GDP can tell you something broader about a society. It is a compounding value, which means only a trivial amount of GDP change can be explained by moving some of a society's value into or out of the GDP measure. Over a century, the compounding effect eclipses the non-measured component.
So if two societies, over the long term, have different GDP growth numbers, one of those societies will end up rich and the other end up poor.
Slow down GDP growth even a little and you will impoverish your grandchildren. They will have to choose between becoming doctors in their poor society, or emigrating and waiting tables in the rich society.