Average American family of 4 now makes $252,000 a year according to latest GDP per capita numbers. Why USA still complains about China ?

N00B said:
None of your ‘conclusions’ are remotely accurate as you don’t have a clue of what GDP is, what it is a measure of, or what impacts it.
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Actually, you are the one who does not know what is the meaning of GDP per capita. You probably think there is only 1 way to compute it.


Just so you know, there is nothing wrong with my original title. The average family of 4 is making GDP/capita X 4 = $252,000 a year - theoretically.
GDP / capita is the income per capita.

As an economist on quora also pointed out: https://www.quora.com/Are-income-per-capita-and-GDP-per-capita-the-same


"Are income per capita and GDP per capita the same?

Essentially, but not literally. Many authors (including this one) use “income per capita” as an everyday synonym for per capita Gross Domestic Product (GDP), based on the fact that all production generates an equal amount of income for someone.

However, from the standpoint of national income and product accounting, a couple of footnotes apply to this point."



What is outrageous about my title, is the sarcasm. Of course we all know GDP per capita never equals the median income because of the unequal distribution in income. Usually, most of the country's income is heavily tilted towards the richest people. If you are middle class and below, your income should be significantly lower that the average income of the country (GDP per capita).

Ah! you also couldn't point to the damage that China did to the USA GDP over the past 20 years on the graph. Because there is none. The US had gained on aggregate from this trade.

Yes, manufacturing in the USA has been heavily damaged in the past 20 years. However, this had been offset by gains made through companies eg. Apple that outsources their manufacturing overseas to places like China. The profits that such companies made more than offset the losses that American manufacturing suffered. US financial sector also benefited a lot. Average Wall Street bonuses are enough to purchase for a new Lamborghini. The US just has a problem on how to share this benefit equally.
 
blam said:
Actually, you are the one who does not know what is the meaning of GDP per capita. You probably think there is only 1 way to compute it.


Just so you know, there is nothing wrong with my original title. The average family of 4 is making GDP/capita X 4 = $252,000 a year - theoretically.
GDP / capita is the income per capita.

As an economist on quora also pointed out: https://www.quora.com/Are-income-per-capita-and-GDP-per-capita-the-same


"Are income per capita and GDP per capita the same?

Essentially, but not literally. Many authors (including this one) use “income per capita” as an everyday synonym for per capita Gross Domestic Product (GDP), based on the fact that all production generates an equal amount of income for someone.

However, from the standpoint of national income and product accounting, a couple of footnotes apply to this point."



What is outrageous about my title, is the sarcasm. Of course we all know GDP per capita never equals the median income because of the unequal distribution in income. Usually, most of the country's income is heavily tilted towards the richest people. If you are middle class and below, your income should be significantly lower that the average income of the country (GDP per capita).

Ah! you also couldn't point to the damage that China did to the USA GDP over the past 20 years on the graph. Because there is none. The US had gained on aggregate from this trade.

Yes, manufacturing in the USA has been heavily damaged in the past 20 years. However, this had been offset by gains made through companies eg. Apple that outsources their manufacturing overseas to places like China. The profits that such companies made more than offset the losses that American manufacturing suffered. US financial sector also benefited a lot. Average Wall Street bonuses are enough to purchase for a new Lamborghini. The US just has a problem on how to share this benefit equally.
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Nope, try again. Maybe you’ll get it right eventually... but it won’t suggest what you claim.
 
Trade with China is insignificant for US GDP. I never claimed it hurt the US.... of course the converse is true. China needs US consumption to sustain its economic model.

Please enlighten me as to the benefits of currency manipulation. You seem to think you understand economics.
 
blam said:
Actually, you are the one who does not know what is the meaning of GDP per capita. You probably think there is only 1 way to compute it.


Just so you know, there is nothing wrong with my original title. The average family of 4 is making GDP/capita X 4 = $252,000 a year - theoretically.
GDP / capita is the income per capita.

As an economist on quora also pointed out: https://www.quora.com/Are-income-per-capita-and-GDP-per-capita-the-same


"Are income per capita and GDP per capita the same?

Essentially, but not literally. Many authors (including this one) use “income per capita” as an everyday synonym for per capita Gross Domestic Product (GDP), based on the fact that all production generates an equal amount of income for someone.

However, from the standpoint of national income and product accounting, a couple of footnotes apply to this point."



What is outrageous about my title, is the sarcasm. Of course we all know GDP per capita never equals the median income because of the unequal distribution in income. Usually, most of the country's income is heavily tilted towards the richest people. If you are middle class and below, your income should be significantly lower that the average income of the country (GDP per capita).

Ah! you also couldn't point to the damage that China did to the USA GDP over the past 20 years on the graph. Because there is none. The US had gained on aggregate from this trade.

Yes, manufacturing in the USA has been heavily damaged in the past 20 years. However, this had been offset by gains made through companies eg. Apple that outsources their manufacturing overseas to places like China. The profits that such companies made more than offset the losses that American manufacturing suffered. US financial sector also benefited a lot. Average Wall Street bonuses are enough to purchase for a new Lamborghini. The US just has a problem on how to share this benefit equally.
Click to expand...

Sorry, is this sarcastic? Just want to be clear how much to ignore you.
 
N00B said:
Trade with China is insignificant for US GDP. I never claimed it hurt the US.... of course the converse is true.
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Yo...finish that sentence. Don't be shy....Trade with China never hurt the US economy. In fact it helped it tremendously when you look at the GDP growth of the USA in the past 20 years.

The only thing it hurt is US manufacturing but US economy at the same time transitioned to higher end production like design and finance services to offset this loss. That's also a good thing that China has helped the US make this transition. And these higher end jobs bring more income to people and greater profit margins to corporations. Why are you complaining if not for political gain? What the US had done badly is its failure to retrain the people who used to work in manufacturing into higher end jobs. So Trump is using these people in the industrial rust belts to gain political support. . In terms of aggregate gain, the US has gained a lot overall and on aggregate from trade with China. Stop crying like the victim.

The only entity in the world that labels China a currency manipulator is the US Treasury and this is of course done for political reasons. Do you even know the definition of Currency manipulator? The IMF sure didn't think China is a currency manipulator. (https://sputniknews.com/world/20190...yuan-as-us-labels-china-currency-manipulator/)

Once you know the definition of currency manipulator, if you are smart then you will see that the exchange rate is quite fairly valued. In fact, it would be disadvantageous to undervalue one's exchange rate. Are you happy when the US dollar falls with respect to the Mexican Peso?
 
blam said:
Why then do people still think "America needs to be made great again" when they are already making so much? Am I missing something?
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Yes. Inflation of the money supply. Ask China how they feel about that when they are holding roughly 1.7 trillion in U.S. Bonds.
 
Bruddah IZ said:
Yes. Inflation of the money supply. Ask China how they feel about that when they are holding roughly 1.7 trillion in U.S. Bonds.
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I believe it is not very wise for China to hold on to so much US bonds. Unlike other countries, the US could inflate its way out of debt. For example, US could repay these debts just by printing more money. Then China will hang on to worthless papers. US could then have an alternate currency to be used locally.

As oppose to other countries who borrow in US Dollars, these countries could not print money to repay their debt as they borrow in loans denominated in US dollars.

So if I ask China, I think Chinas answer is they are so nervous hanging on to so much US bonds.
 
blam said:
I believe it is not very wise for China to hold on to so much US bonds. Unlike other countries, the US could inflate its way out of debt. For example, US could repay these debts just by printing more money. Then China will hang on to worthless papers. US could then have an alternate currency to be used locally.

As oppose to other countries who borrow in US Dollars, these countries could not print money to repay their debt as they borrow in loans denominated in US dollars.

So if I ask China, I think Chinas answer is they are so nervous hanging on to so much US bonds.
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Maybe you could get Izzy to help you. He knows all about finance and percentages and stuff.
 
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