3 ms·
Economic growth is best measured excluding inflation, but the chart in the tweet uses "current prices" aka the 2008 values are in 2008-dollars and the 2023 valu
by yorwba 3y ago
Economic growth is best measured excluding inflation, but the chart in the tweet uses "current prices" aka the 2008 values are in 2008-dollars and the 2023 values are in 2023-dollars, including all the inflation that happened in between. (I've seen actual economists get confused by this meaning of "current", mislabeling a "current dollars" chart from 2019 as being in 2019-dollars, even though it wasn't inflation-adjusted at all.)
Using the World Bank's figures in 2015-dollars https://data.worldbank.org/indicator/NY.GDP.MKTP.KD?locations=US-EU https://data.worldbank.org/indicator/NY.GDP.MKTP.KD?location...
GDP 2008 US: 16.38T EU: 13.19T US/EU: 1.24
GDP 2022 US: 20.95T EU: 15.21T US/EU: 1.38 (2023 not yet available)
Ratio of ratios: 1.11, so the US has increased its lead by about 11%, which is not nothing, but also less dramatic than it looks to me in the "current prices" chart.
- hef19898 3y agoEspecially when accounting for negative GDP growth in the EU in 2012 and 2013, and the huge hit the EU took in 2020. 11% isn't nothing, but the both economies grew, one a bit more than the other, and that is hardly the end of the world one could be made believe by looking at the chart nased on current USD. Sometimes lying with numbers is way, way to easy...
- deleted 3y ago[deleted]