Europe has a lot of dead weight (eastern Europe). Demograpically its in a much worse position than America, less births and migration. It's not a surprise they've had no growth for 15 years.
Chinese Economics Thread
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The EU economy has not taken advantage of the new economic models and was instead basically further colonized by US corporate giants as a result of their complacency. A lot of the cheaper products and basic industry were also replaced with Chinese products. Add to this now Europe nerfing itself by cutting itself off Russian energy and resources and it is a recipe for failure. Europe is headed the same way as Japan I think.
Japan is highly homogenous ethnically and enjoys very low violent crime rates. I don’t think Europe has that going for them when the tough gets going.
Except it does not compare international power unless you're talking about the small portion of international exports and so on. Which would be of some interest if a country is very export driven, such as Germany for example. Again, these prices can constantly fluctuate based on inflation in different economies.
It is not just military power that brings prestige but also how economic power translates into general purchasable goods. Economy is a measure of the nation's power and ability for their people to thrive by expanding goods, if your model cannot show the level of economic activity correctly, any "prestige" assigned to it is just random coping, not actual prestige. IIRC even the CIA factbook records based on adjusted gdp with nominal being a footnote.
If nations worked like companies, theoretically, every American could go over to China and then buy out the country because of how appreciated the USD is. That is the on paper advantage of nominal gdp. But nations don't work like companies. If a lot of Americans go over to China and massively spend, it will just change the supply and demand, rapidly devalue the dollar vs the RMB. Besides, most of China isn't for sale internationally. There are national security concerns etc.
So yeah, a fun little exercise of hypotheticals but god awful at actually describing reality. And when looking ahead, it is better to look at the real world than at hypotheticals.
You may be right, but nobody paid attention when China passed US ppp GDP, everybody will pay attention when China passes US nominal GDP
Fairly sure the way both nations plan their economies, the moment of syzygy was immensely important, but mainly to government economists.
Other nations also paid attention, mostly ones whose fate is intertwined with Asia. For example SK's attitude has changed and Japan is far less openly aggressive. And whatever OPEC is doing.
Despite not being the global reserve currency, it seems that China is the number 1 economic influencer nowadays, whether you are the British, Saudis, Russians or in South America, and they are treated that way.
So, reality whether domestic or foreign lines up with what is projected by China's actual gdp and not the downwards adjusted one due to RMB depreciation.
What US itself claims, it will keep doing whatever it wants. I don't think any official American documents claim they are the largest economy ever since China passed them. Perhaps the occasional chest thumping nationalist speech makes this claim, because they don't need to base policy on stuff like that.
Instead, Americans talk about being "the best market" "the largest community of free markets" and so on. The best and the "free" are cool terms because they are subjective.
Americans will keep claiming they are the "best" now just like they've done ever since China passed them and for the foreseeable future. Nothing will really change that.
Won't they just divert attention from that as well to GDP per capita instead
There are many pointless ways to count stuff that doesn't reflect real life and nobody important cares about.
One can count the number of cars. The numbers of televisions perhaps. Amount of meat consumption or calorie intake? Or maybe amount of insurances sold?
None of these methods will give a picture of what the national power of a country is, which is why we even bother to measure economy at all in the first place.
Add the 10,000 little giants being cultivated and they will pick whatever will be left of the EU.
I wonder what will be China answer, for now China answers usually have been to out innovate and out produce the US.
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