It's official: America is now No. 2 (to China)

Yahoo News - Market Watch ^ | Dec 4, 2014 | Brett Arends

[etl lll]

There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.

It just happened — and almost nobody noticed.

The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A.

As recently as 2000, we produced nearly three times as much as the Chinese.

[familyop]

"You can thank Nixon and all of the other US Presidents that have followed."

Very true. Some of Nixon's most influential constituents were pushing hard for most favored nation trade status for China. During the years to follow, they proceeded to move much of our manufacturing to the countries of the foreign cultures that they lustfully fornicated with.

[familyop]

"The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A."

That's in U.S. Dollars, and China is still a communist nation.

[familyop]

"So, if I own a home valued at $300,000 and a car valued at $20,000 and a bank account with $50,000 and stocks valued at $40,000, my total net worth would be $410,000. How does the average Chinese citizen compare to what I might have amassed?"

How does the average American citizen compare?

About "70 million" people are receiving good incomes but are also steeped in debt and can't borrow more for big ticket items.

Leviathan (Uncle Sam employs more people than you think)
National Review ^ | 02/03/2011 | Iain Murray
"...nearly 40 million Americans employed in some way by government."

Heavy Hitters: Top All-Time Donors, 1989-2014
http://www.opensecrets.org/orgs/list.php
“2 American Fedn of State, County & Municipal Employees $60,949,129 [Democrat] 81% [Republican] 1%”

They discuss politics with Republicans while giving our money to Democrats.

More Than 101 Million Working Age Americans Do Not Have A Job
http://www.freerepublic.com/focus/f-bloggers/3005481/posts

[anymouse]

That's in U.S. Dollars, and China is still a communist nation.

Can you imagine what an economic beast China would be if it let the whole country run full capitalist, like Hong Kong and Taiwan?

We've got no one to blame, as we've let the elites of both parties lay waste to the hard-won economic strength of the U.S. through unfair trade, choking bureaucracy and irresponsible fiscal policies.

It takes considerable effort to sink a capitalist nation, but it can be done - from within.

[wrench]

“So, if I own a home valued at $300,000 and a car valued at $20,000 and a bank account with $50,000 and stocks valued at $40,000, my total net worth would be $410,000. How does the average Chinese citizen compare to what I might have amassed?”

The average American is up to his eyeballs in debt. Very few own their home, and a late model car debt free, and the Average American worker has less than $5,000 saved at retirement.

[mrsmith]

Huff and Puff Post has ALL the excuses and denials LOL!
http://www.huffingtonpost.com/2014/10/08/china-gdp-tops-us_n_5951374.html

But purchasing-power parity is the REAL deal.

[Zhang Fei]

IMO, much ado about nothing, but your take would be appreciated.

[Zhang Fei]

Can you imagine what an economic beast China would be if it let the whole country run full capitalist, like Hong Kong and Taiwan?

They are fully capitalistic. China's communist in name only. Production decision are made by companies responding to consumer demand rather than central planners dictating what consumers will get. But even capitalist countries need time to catch up. Eastern Bloc countries have cast off communism for almost a quarter century, and they're not fully caught up to the rest of the EU.

[Oliviaforever]

If you believe that headline to the true and relevant, I would advise you to go to the bank the first thing in the morning and convert all your US dollars to Chinese yuan.

I bet you will not do that.

[familyop]

"Can you imagine what an economic beast China would be if it let the whole country run full capitalist, like Hong Kong and Taiwan?

We've got no one to blame, as we've let the elites of both parties lay waste to the hard-won economic strength of the U.S. through unfair trade, choking bureaucracy and irresponsible fiscal policies.

It takes considerable effort to sink a capitalist nation, but it can be done - from within."

Very well said and very true. Thank you.

Many others have recently, dishonestly written propaganda claiming that avarice is the essence of a good and thriving capitalist economy, which is not true. One can have a honest, strong desire to produce more for the purpose of earning more money without betraying one's countrymen for a foreign nation, coveting one's neighbors property or cheating others.

[familyop]

China’s banks are state-owned. The last time we saw any report on how many businesses in China were state-owned (within the past few years), the number was over 150,000.

The PLA controls China right down to the local levels.

[willibeaux]

AMEN SoF.....

[familyop]

"Production decision are made by companies responding to consumer demand rather than central planners dictating what consumers will get."

That is true to great extents, but they are still ultimately answerable to the PLA. Working conditions in many of the shops there amount to conditions of slavery.

[familyop]

Fuzhou Launtop M & E Co.,Ltd.
"Now the company owns 850 employees, among which there is 100 technical person."

Have fun. Enjoy de sride.

[Lurkina.n.Learnin]

Cool. Now when the UN needs more money we know where to send them.

[Zhang Fei]

China’s banks are state-owned. The last time we saw any report on how many businesses in China were state-owned (within the past few years), the number was over 150,000. The PLA controls China right down to the local levels.

They compete for customers, pay dividends and employees are paid based on each institution's profitability. Communist banks don't do any of the above.

[familyop]

I don’t blame the Chinese people. The many Chinese people I’ve met were wonderfully straightforward, caring, honest and polite. They have good, strong morals. But I do disagree with centralized, autocratic and sometimes brutal government. Many people there have been moved long distances away from their homes against their own will.

We know that censorship has always been with northern and eastern Asia, but I also disagree with censorship against political speech. Censorship for public decency can be very good, as we’ve had the same in earlier America. But censorship against political speech: very disagreeable.

[familyop]

I also admire and respect the Chinese people very much for doing the following and wish that we would do the same. But it could not have been done without the long suffering, strength and determination of most of the people at the community level (a democratic effort). The even more centralized earlier government by the Qing dogs was unsuccessful at ridding China of the problem without the full support of the people.

How China got rid of opium

[familyop]

"They compete for customers, pay dividends and employees are paid based on each institution's profitability. Communist banks don't do any of the above."

Well, okay. Maybe they're better communist banks than those of Russia.

;-)

[Zhang Fei]

That is true to great extents, but they are still ultimately answerable to the PLA. Working conditions in many of the shops there amount to conditions of slavery.

That's the way they are in low-wage countries. Anyone who wants to improve conditions there by employing workers under conditions a worker in a high-wage country would be comfortable with, is certainly free to do so. Work conditions have got nothing to do with capitalism or the lack thereof. The conditions under which workers toiled during the first 150 years of the Industrial Revolution can only be described as Dickensian, but the system was no less capitalistic for being so spartan in its treatment of the labor force.

Working conditions in China prior to the Communist Revolution were certainly no better than conditions afterwards. The key change was post-revolution, everyone had an incentive go goof off because to work too hard was pointless, given that everyone else got the same rations regardless of output.

The principal difference between capitalism and communism is that the market, rather than central planners, sets prices and production quantities.