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Treemap of World GDP by Purchasing Power Parity (PPP) 2020
- tobz1000 3y agoMeasuring GDP adjusted by purchasing power parity, but not per capita, seems like an odd metric. PPP-adjusted GDP per-capita gives an indication of the level of goods/services affordable by an individual citizen. Total GDP, unadjusted, is an indicator of a country's economic power. What does PPP-adjusted total GDP indicate?
- lp4vn 3y agoWhatever PPP-adjusted total GDP might indicate, I think the main idea is to create a graphic where China is ahead of the USA economically.
- jchoelt 3y agoYeah, take something proportional to how big (population) AND rich a country is. Divide this by a metric that grows with how rich a country is. This way poorer but bigger countries score better. But that doesn't tell much.
- dopidopHN 3y agoThe US is a country with rich people in it, it’s not a rich country. ( I live in New Orleans, 35% of kids don’t have enough calories per days to have a proper brain development. And New Orleans is fine compared to the rest or Louisiana )
- gottorf 3y ago> in New Orleans, 35% of kids don’t have enough calories per days to have a proper brain development Source? I find that hard to believe, considering how cheap and plentiful calories are and how numerous the various public assistance programs exist relating to feeding the poor.
- dopidopHN 3y agoI know it’s intense. Those people must be stupid. Or it’s their fault and they deserve it. ( :s ! ) My bad for the figure, I had a third in mind. It’s less. Can’t find a general population figure in the short amount of time. 20 ish % of black kids is enough or it’s fine ? Source : https://www.cpex.org/blog/stateofhunger https://www.cpex.org/blog/stateofhunger What was eye opening to me was volonteering in a random school. And noticing how the breakfast was a important and respected steps. Like.. not everyone had dinner last night. Oh well, right ?
- marcusverus 3y agoI find it utterly bizarre that this kind of ignorant hand-wringing is so pervasive. The US median household income is ~6x the global median. The average US household in the bottom income quintile has an income above global median before accounting for 10s of thousands of dollars in in-kind transfers (i.e. welfare). > 35% of kids don’t have enough calories per days to have a proper brain development. Utter nonsense.
- dopidopHN 3y agoOh yeah their is so much rich folks in the US. Yet, I never seen that much poverty before moving here. I guess it’s just more visible. Gini index would be a good addition to your figures. Regarding a third of kids being hungry on a regular basis. I had it wrong indeed. It’s more 20% of black kids. Wee! Source : https://www.cpex.org/blog/stateofhunger https://www.cpex.org/blog/stateofhunger
- marcusverus 3y agoThe article says nothing about children lacking the calories required for brain development. It says 23% of black households self-reported "not having enough food in the past week". Which is weird, because when I go looking for objective data that might support the assertion that a significant percentage of the population isn't getting enough calories, I don't find anything. I did find an article that obtained weight data on both whites and blacks nationwide, and broke them down in Underweight, Normal, Overweight, and Obese categories... but the number of underweight individuals was so low that it rolled them into the 'Normal' category, and didn't even report the Underweight category. It's almost like everyone is getting more than enough to eat! Neither your anecdata on "visible poverty" nor the US Gini index contradict the obvious fact that the USA is, by any serious measure, a rich country.
- dopidopHN 3y agoSo everything is fine and my experience is anecdotal. It truly makes me feel better. I should do the same exercise you did with Swiss data. That what come to my personal mind when I think of “rich country” not the lower 9th ward, or New Orleans East. But since the US is rich like demonstrated. I should actively start to reframe those place into “rich”. And look more at all those fat people in the street.
- alephknoll 3y agoBeen to new orleans. Didn't see anyone with 'caloric deficit' issues. And you have it backwards. Louisiana has a problem with an overabundance of calories, not a lack of calories. Louisiana is one of most obese states in the country after all. https://www.cdc.gov/obesity/data/prevalence-maps.html https://www.cdc.gov/obesity/data/prevalence-maps.html There are legitimate issues with economic disparity in the country. Not sure why you are trying to tie it to calories?
- dopidopHN 3y agoYeah calorie is probably not the right terms Looking up what I had in mind the proper way to reference it is “food insecurity” Source : https://www.cpex.org/blog/stateofhunger https://www.cpex.org/blog/stateofhunger Or “no kid hungry Louisiana”, that the one I noticed here. Giving breakfast out in school. My first reaction was to wonder why. Digging I realized that a fair amount of kids were coming to school on a empty belly. That’s it. Also “been to New Orleans” is a funny statement! Congratulations on seeing Jackson square and the French quarter. It’s a city, not 10 historical blocks.
- pydry 3y agoIt's a measure of economic power. These are the resources which could be corraled collectively by all of China, Russia, US, etc.
- yorwba 3y agoPPP-adjusted GDP is an indicator of the level of goods/services affordable by all citizens together. The treemap shows how global total purchasing power is divided between countries. A treemap of GDP PPP per capita would show the breakdown of purchasing power if you put one citizen of each country in a single room. I think a bar chart would be a better choice in that case.
- triblemaster 3y agoPPP-adjusted total GDP indicates ability or capacity to work on commodity-industries industries, like construction, or furniture, where establishing new industries doesn't need as much new research.
- throwaway4good 3y agoMost activity of a country is consumed internally. Nominal GDP is (short-term at least) dominated by currency fluctuations.
- DiogenesKynikos 3y agoIf you plot the US' nominal GDP over time in terms of USD, it looks pretty smooth, while other countries bounce around a lot more.[0] That's because other countries' USD nominal GDPs are affected by exchange-rate fluctuations. If you plot in terms of PPP GDP, other counties suddenly appear much smoother.[1] 0. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US-EU&start=2000 https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?location... 1. https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=US-EU&start=2000 https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locat...
- sidkshatriya 3y ago> Measuring GDP adjusted by purchasing power parity, but not per capita, seems like an odd metric. Depends on what you want to compare. If you want to understand the "heft" of the country in terms of the sheer size of the economy (adjusted for exchange rates) then you do country GDP on PPP basis. If you want to understand the size taking into account currency rates then you do plain GDP. If you want to understand how well off a citizen is THEN you do per-capita GDP. When countries play on the world stage for influence, their overall heft i.e. total GDP (whether on a PPP basis or not) is essentially the main determinant.
- bryanlarsen 3y ago"Heft" is how much weight a country can throw around to affect other countries. Stuff like fighter jets & aircraft carriers, aid deals, trade deals, purchasing assets in other countries, et cetera. Most of that is in trade currency, so no PPP adjustment. Building fighter jets is cheaper in low-PPP countries, but only partially. So, no I don't think you should PPP adjust if you want to measure heft.
- The_Colonel 3y ago> Building fighter jets is cheaper in low-PPP countries, but only partially. Even that holds only true if all other things are equal. But low PPP countries are strongly correlated with less industrialization, less educated workforce etc. That's why most (low-PPP) countries, even large ones, don't produce their own jets - it's cheaper to buy them. > Most of that is in trade currency, so no PPP adjustment. It's non-trivial to make that cut. I'd say things PPP for stuff like food doesn't count, but PPP for even rather basic industrial products already does.
- hasty_pudding 3y agoWait but the dollar has a higher exchange rate than Chinese currency as well.
- willvarfar 3y agoIs it roughly the size of the internal market, in big macs?
- DiogenesKynikos 3y agoIn Big Macs, refrigerators, automobiles and dish detergent.
- thriftwy 3y agoRefrigerators and automobiles usually cost the same. Rich countries may be buying fancier ones, while mid-tier countries may sometimes have significant tariffs on cars. But eating out, getting education, child care costs and foremost real estate, are all deeply PPP corrected.
- graemep 3y agoOne area it can come up is the country's ability to self-supply things. To take a example that is currently of interest, Russia's ability to manufacture weapons is far greater than that if a country with the same nominal GDP but is closer to its PPP GDP (plus the effects of being more self sufficient than most countries other than the big two).
- 082349872349872 3y agoI liked a russian hacker's story of building an IR camera by repurposing an old scanner: at one point he tries to source a detector from China but is unable to order it because of (he says) US export rules; then he remembers he's from a country that builds its own air-to-air missiles, and finds a Russian supplier who sends him the part...
- thriftwy 3y agoI believe the rationale here is that if you can source some gadget from China, it's going to be ten times cheaper than any alternative, since there's an enormous stock of those there used to to make other gadgets, therefore low margins and high turnover. So that's where you look first.
- cpursley 3y agoYep, maybe GDP is not a great measure if one country can produce a box of cookies for $1 while another $4. Turns out physical output is important (bushels of wheat, pounds of steel, # of cars, etc).
- mo_42 3y ago> Measuring GDP adjusted by purchasing power parity, but not per capita, seems like an odd metric. I agree. As I commented recently here, we should also normalize by total hours worked. People in the US work much more than in many other countries. I guess one use of total GDP adj. b. PPP would be when countries negotiate something. Then, China would have a strong argument for setting terms.
- rmbyrro 3y agoIt's not odd if you have an urge to find any GDP metric where China is ahead of the US.
- ZiiS 3y agoPurchasing power only makes sense on a per-capita level; it measures on average what you can by with the sorts of money you can carry. The price will not be the same if the entire country's GDP tried to buy the same goods.
- triblemaster 3y agoIt can also reflect the dynamical nature of the economy in commodities-related industries. A country with higher total purchasing power has higher ability to start and finish projects in low-tech industries like home construction, furniture manufacture and so on.
- ggm 3y agoIf India gets its shit together it'll push the USA into 3rd place. Japan punching way above its weight.
- oefrha 3y agoJapan has a population of 123mm, 1.5x that of Germany next to it. It’s not a small country.
- ggm 3y agoApologies: germany and Japan pulling above their weights
- 082349872349872 3y agoIf significantly more of India starts using english, maybe en-in will eventually do to en-us what en-us did to en-gb?
- ggm 3y agoBased on my personal experience with delayed replies to Indian business letters, the inflation from hyper polite to enraged in one exchange is going to be hilarious if it gets out more widely.
- knallfrosch 3y agoThat's a big "if"
- ggm 3y agoEducation and market forces.
- sfy 3y agoI guess this is the way dictators see things.
- xnx 3y agoAren't treemaps most useful when there's a hierarchical relationship. What's the structure here? Feels like a bar chart would have been better.
- haneul 3y agoStill good for proportionality. Would’ve been even cooler though with folders for EU, NATO, and other groups that I’m ignorant of. Spacesniffer-style.
- xotesos 3y agoMaybe more useful if hierarchical relationships exist but I just love treemaps in general. I love the way they can make the most of that given screen space. A bar chart would not be able to fit in that screen area because there has to be empty space in a bar chart.
- 082349872349872 3y agoIt'd be interesting to colour this map, not by continent, but by {Disputed Territories, Eastasia, Eurasia, Oceania} alignment. Assuming India as a Commonwealth country counts in Oceania, that leaves Indonesia as the largest "Disputed Territories" member on this graph...
- Snoupy 3y agoimo PPP is misleading. 1 public toilet in the US is nothing like 1 public toilet elsewhere. 1 housing unit in the US is nothing like 1 housing unit in China. Nominal GDPs in USD fluctuate in value because they are real. Countries in EU, Russia or China are suddenly relatively less wealthy after adverse currency move.
- throwaway4good 3y agoOne Big Mac in China is nothing like one Big Mac in the US?
- makeitdouble 3y agoWell yes. It all depends on how it's produced in China and also what's the marketing and the price positioning. It probably can get away with higher price by positioning itself as an exotic brand. You could ask the same for North Korea, is a Big Mac really the same product over there than in Alabama ?
- throwaway4good 3y agoI don’t think there is a McDonald’s in North Korea but otherwise - yes - a Big Mac is the same all over the world.
- Snoupy 3y agoLet's agree to disagree even for that specific Big Mac. I think the likelihood of contamination/ food fraud, concealed scandals, etc is higher in China and NK. Simply knowing it prevents me from similarly valuing the Big Mac. In addition, I often enjoy freely joking about the stupidity of local politicians while eating... and could bring up the building standards, codes, AC, open restrooms, reliability of power grid, etc that won't match US standards and impact my experience as a customer. Anecdotal example 1: In July 2014, Shanghai Husi, a Chinese subsidiary of a US-owned food supplier was caught producing substandard meat products. McDonald's was one of its biggest fast-food clients and had been sourcing from the supplier for more than two decades. After cutting ties with Shanghai Husi, McDonald's China and its branches in Hong Kong and Japan were forced to pull many products from the menu due to a severe shortage of meat and vegetable supplies. Just 1 occurrence of them getting caught, imo more likely to occur in countries with widespread corruption and directly impacting the burger consumption experience/consumer peace of mind. Anecdotal example 2: when I eat I like to connect to wifi and freely browse YouTube
- nurumaik 3y agoDoes sum of all GDP/PPP (represented as a big rectangle) even make any sense?
- throwaway4good 3y agoTotal production / activity of the world - yes it makes sense. Just as it often makes sense to look at real gdp growth (growth adjusted for inflation) rather than nominal gdp growth.
- forinti 3y agoPoland's progress is impressive. We'll soon be seeing British plumbers in Krakow.
- jamesbyebye 3y agoI'm from china. I don't think our country has already exceed USA in economics.Acturally most chinese believe we fall behind USA and Europe coutries far way.
- sivm 3y agoThe average person in 成都 lives better than the average person in NYC.
- DiogenesKynikos 3y agoChina is still far behind the US on a per-capita basis, but China has a lot of people, so the overall size of the economy is similar (larger in PPP terms, smaller in nominal terms). I don't think anyone here believes China is ahead in terms of average standard of living. This graphic is just about the overall size of the economy.
- kwere 3y agothe economy wealth level should be about disposable income PPP after accounting for shelter, food and other basic necessities
- arendtio 3y agoThe colors are something like continents/regions?
- tderflinger 3y agoYes, more like regions, I stuck to the definition of the World Factbook, where I got my data from. Green for example is Africa, blue Europe, red Asia, but there is also "Middle East", "North America", "South America" and "Southeast Asia", "Oceania".
- makeitdouble 3y agoFirst time I heard about PPP: https://en.wikipedia.org/wiki/Purchasing_power_parity https://en.wikipedia.org/wiki/Purchasing_power_parity I wonder how they come up with a common ground between Kuwait and Mexico, it feels incredibly easy to manipulate from the source.
- tderflinger 3y agoFor the technically inclined, I did this treemap with the open source D3.js (https://d3js.org/d3-hierarchy/treemap https://d3js.org/d3-hierarchy/treemap) JavaScript library. Great library btw!