China Overtakes the US as World’s Largest Economy

Chinese China

Chinese China

October 8, 2014 – It’s official, China has surpassed the US when it comes to purchasing power parity, a measure of wealth the IMF uses to determine who gets more bang for their buck… or Yuan as the case may be.

From the article:

The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have.

Don’t feel bad, America. We’re still number one when it comes to debt!

View the article.