Bobko
20 Sep 2021
Life / Where do the wealthy class live in Warsaw? [32]
Not entirely on-topic, but this generational wealth accumulation idea is precisely the reason why the West should stop freaking out about China. Going by GDP numbers alone, it may seem to an observer that China is close to overtaking or has already overtaken the United States (if one goes by purchasing power rather than nominal dollar to dollar comparisons). But GDP is only a measure of output, not wealth. Aircraft carriers and nuclear submarines are paid for not with GDP but wealth. In this regard America is at least twice the size of China, and the lead is actually INCREASING. American national wealth in 2019 was approximately $118 trillion, whereas China's was $64 trillion. This lead was at least $12 trillion larger than in 2011.
China is still a very poor country, and will remain so for a long time. Building steel plants and aluminum smelters may look good in aggregate GDP numbers, but if they are not useful and productive they do not add to wealth.
Not entirely on-topic, but this generational wealth accumulation idea is precisely the reason why the West should stop freaking out about China. Going by GDP numbers alone, it may seem to an observer that China is close to overtaking or has already overtaken the United States (if one goes by purchasing power rather than nominal dollar to dollar comparisons). But GDP is only a measure of output, not wealth. Aircraft carriers and nuclear submarines are paid for not with GDP but wealth. In this regard America is at least twice the size of China, and the lead is actually INCREASING. American national wealth in 2019 was approximately $118 trillion, whereas China's was $64 trillion. This lead was at least $12 trillion larger than in 2011.
China is still a very poor country, and will remain so for a long time. Building steel plants and aluminum smelters may look good in aggregate GDP numbers, but if they are not useful and productive they do not add to wealth.