Chinese Economics Thread

I

Index

Senior Member
Registered Member
Santamaria said:
This not true.

Public roads only count in the GDP when they are built.

Privatized roads count when they are built, when they are privatized and every time a driver pays to go through them. They inflate the GDP in at least a factor of 3. While in reality they weaken the productive economy because they increase cost for all business.

Public doctors count in GDP only when the state pays them salary. Privatized doctors count in the GDP when you pay your medical insurance, when you pay doctors, and when the medical insurance send you back the money.
Again inflating the GDP numbers.

That is why you see economical growth in countries when neoliberals won, but they don't increase their manufacturing, standards or life or nothing in general. It is artificial. You will see it now in Argentina.

GDP nominal is indeed a totally wrong metric to judge the power of a country. And GDP purchasing power also fails, although not so much.

Of course there is some loose correlation with real power. But in many instance it simply fails.

China is more powerful than the US economically. This is without any doubt. Any aspect of the economy you check China produces several times more things than the US, so by definition they are a more powerful economy. The only doubt with China US is who is the stronger military.

With Russia is even more obvious that is economically more powerful than Germany. Germany would not be able to grow like Russia in middle of 14000 sanctions, build the Crimea bridge as fast as Russia did or keep a army like Russia.
In case of Russia the nominal GDP is specially wrong because their currency is artificially depreciated and things are very cheap there.

I mean, the nominal GDP went to the extreme of saying that Spain is almost as powerful as Russia and Italy is more powerful. That is a joke that tells you everything you need to know about nominal GDP
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"Nominal" GDP can only be compared within entities that have the same currency. That's the whole point of it. You take how much money x entity generates in transactions. For China, that would be in RMB, for US it would be in dollar, for Argentina it would be in their pesos etc.

You can compare the nominal GDP of Shanghai against Guangdong because they're both in RMB. You can't compare Shanghai with London without first taking into account the nominal GDP of both entities are in straight up completely different currencies and circumstances.

The only purpose of economic models is to approximate real conditions. In order to simulate the fact that different countries use different currencies, it is a must to calculate for it first, otherwise you get nonsense results.
 
Maikeru

Maikeru

Major
Registered Member
GDP is largely nonsense anyway. I can illustrate this with a story about 2 guys, let's call them Milton and Maynard, walking down a country lane.

Milton: Hey, I bet you $10000 you can't eat that cowpat.

Maynard: Umm...ten grand? OK

Maynard eats the cowpat, is very sick, pukes everywhere, and Milton gives him $10k.

Maynard: OK, well that sucked. How about I give you ten grand if you eat a cowpat?

Milton: Well alrighty!

Milton eats cowpat, is violently sick, Maynard gives him the $10k back. They both walk on. A short while later:

Maynard: Well, that was really, really stupid, we both ate cowpats, we both got violently sick, and neither of us earned any money! What a ridiculous waste of time!

Milton: Whaddaya mean! We generated $20,000 worth of GDP!



Ponder this when you consider that a course of drugs, made in China by a Chinese company, costs less than $1000 in China but the exact same course of drugs costs almost $30,000 in the USA.
 
tygyg1111

tygyg1111

Captain
Registered Member
Maikeru said:
GDP is largely nonsense anyway. I can illustrate this with a story about 2 guys, let's call them Milton and Maynard, walking down a country lane.

Milton: Hey, I bet you $10000 you can't eat that cowpat.

Maynard: Umm...ten grand? OK

Maynard eats the cowpat, is very sick, pukes everywhere, and Milton gives him $10k.

Maynard: OK, well that sucked. How about I give you ten grand if you eat a cowpat?

Milton: Well alrighty!

Milton eats cowpat, is violently sick, Maynard gives him the $10k back. They both walk on. A short while later:

Maynard: Well, that was really, really stupid, we both ate cowpats, we both got violently sick, and neither of us earned any money! What a ridiculous waste of time!

Milton: Whaddaya mean! We generated $20,000 worth of GDP!



Ponder this when you consider that a course of drugs, made in China by a Chinese company, costs less than $1000 in China but the exact same course of drugs costs almost $30,000 in the USA.
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This explains supapowa GDP figures then
 
coolgod

coolgod

Colonel
Registered Member
TOKYO DRIFT ABC said:
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The big one is coming in July, and we need it to come
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As always, a wordy readout. The key is now what China means by “reform” - what will be “reformed” and how, especially in light of the divergent assessment of “reforms” in 2013 - and later - between Beijing and
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.
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What a useless gloating article by that libtard. Literally just tells us reform is coming and nothing else. No shit, Sherlock. Anyone who has read the CPC readouts knows that.
 
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