To: Southack
No, PPP is an adjustment formula. It's what the CIA Factbook uses to give civilians a concept of how far the Chinese Yuan goes in China for a Chinese factory worker's salary, versus what an American can buy in the U.S. on a U.S. salary. Goods in China have different prices than goods in the U.S., after all, so a smaller paycheck goes further in China than in the U.S.
But GDP is the real sum of what a nation produces. GDP per capita is that GDP sum divided by the number of people in your country. No adjustment. Just how many widgets per worker were made.
DEAD WRONG! On each of the CIA World Fact Book page for each country it clearly defines GDP as Purchasing Power Parity. Now, it doesn't take a rocket scientist to see that GDP per capita is not what is produced per person, but what their wages will purchase compared to those in other countries.
97 posted on
04/17/2006 11:50:44 AM PDT by
GarySpFc
(Jesus on Immigration, John 10:1)
To: GarySpFc; Southack
DEAD WRONG! On each of the CIA World Fact Book page for each country it clearly defines GDP as Purchasing Power Parity You can measure GDP based on what you can buy, PPP, or you can measure it based on what you produce, without regard for currency adjustments. If you took all the goods and services produced by China and sold them for US dollars, they produce about $1.5 trillion a year.
104 posted on
04/17/2006 12:24:53 PM PDT by
Toddsterpatriot
(Why are protectionists so bad at math?)
To: GarySpFc
"DEAD WRONG! On each of the CIA World Fact Book page for each country it clearly defines GDP as Purchasing Power Parity. Now, it doesn't take a rocket scientist to see that GDP per capita is not what is produced per person, but what their wages will purchase compared to those in other countries."![](http://webpages.charter.net/aircover/USAflag.gif)
The CIA Factbook uses Purchasing Power Parity in order to compare the standard of living between countries. $50 in Panama goes further than $50 in New York City, for instance, so Purchasing Power Parity shows you that a guy with $50 in Panama will have a higher standard of living than a guy with $50 in NYC.
But that's not GDP. That's the CIA's adjusted version of GDP.
Actual GDP is the Gross Domestic Production of a nation; that's all of the widgets and services that a nation provides. There is no adjustment. Count the widgets; count the services. That's real GDP.
Divide real GDP by your population and you'll get GDP per person.
That's not Purchasing Power Parity. GDP as stated in PPP terms is another thing altogether.
112 posted on
04/17/2006 2:28:04 PM PDT by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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