Is US GDP overstated and Chinese GDP understated?
I truly believe that Chinese nominal GDP is in reality, 2.5-3.5x the size of US nominal GDP.
Supporting evidence:
- Companies listed in geographical locations bolster national GDP due to reporting global revenue (Ex: California getting bloated GDP figures due to international tech companies in Silicon Valley)
- China has far more cash and precious metals transactions (unable to be taxed, reported, documented or even estimated)
- US GDP is mainly intangible products/services (software, legal, financial, consulting, marketing), which tends to bloat GDP further
- China has been understating GDP since the 1980s and 1990s to avoid repayment of IMF developing nation loans. (proven)
- Satellite imagery of urbanisation and light pollution indicate economic growth is far higher than what Beijing reports
- RMB to USD exchange rate is manipulated and kept artificially low by Beijing to keep exports profitable (affects nominal GDP calculations)
- Chinese geopolitical doctrine has involved understating its economic/military potential since the Qing Dynasty
- China doesn't count prostitution, drug trades in its GDP figures or stay-at-home spouses as domestic servants unlike the US, UK or Japan
Is the US deliberately bloating its own GDP/China deliberately understating its own GDP for each of their interests (US hiding its decline, China hiding its wealth/military spending)?
No
yes
Natus reprehenderit voluptatibus eveniet voluptas. Eum similique consequuntur et dignissimos. Dicta fugiat molestiae dolores et pariatur rerum illo. Distinctio nemo dolores atque cumque voluptate. Qui rerum blanditiis harum porro minima omnis aut.
Sequi eius in aut doloribus qui voluptatum. Nihil dolorum dolores voluptatem voluptates. Voluptas atque sed doloremque et ea doloribus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...