3 ms·
It doesn't make sense to use PPP when asking questions about a country's economic strength or power. It's designed for questions of manufacturing or cost of li
by nostromo 6y ago
It doesn't make sense to use PPP when asking questions about a country's economic strength or power. It's designed for questions of manufacturing or cost of living.
China has a high PPP GDP simply because it has hundreds of millions of people living in some form of poverty, which drives down costs locally. Clearly if the driver of your high PPP GDP is a massive underclass living in poverty, you can't turn around and use that as an argument in support of your economic might -- it's incoherent.
- Robotbeat 6y agoIn terms of geopolitical significance, such as ability to wage war (modern industrial wars being heavily dependent on manufacturing capacity) then PPP is pretty relevant. If anything, that probably under-estimates China’s industrial capacity compared to the US. https://www.statista.com/chart/amp/20858/top-10-countries-by-share-of-global-manufacturing-output/ https://www.statista.com/chart/amp/20858/top-10-countries-by...