S.T.A.G.E. on 09 October 2014
| theprof00 said: So, if we consider their purchasing power, where you can buy a shirt for a buck, then their economy is better? Not sure how that works in anything other than a national level. In the global economy a dollar is still just a dollar. |
They can buy more with their dollar than the average person in the states can. Thats the big issue though....im wondering about how much the average person makes in China in general being that there are over a billion of them. It terms of raw GDP as a nation the US is still ahead.
You have two types of GDP.
a) PPP (Purchasing price parity) GDP
b) Nominal GDP
Developing nations like China and India are increasing their PPP by leaps and bounds, but they haven't surpassed our Nominal GDP.
