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World Bank: European Union gdp per capita for 2022 was $37,433, a 3.33% decline from 2021. U.S. gdp per capita for 2022 was $76,330, a 8.7% increase from 2021

by gizmo 2y ago

World Bank: European Union gdp per capita for 2022 was $37,433, a 3.33% decline from 2021. U.S. gdp per capita for 2022 was $76,330, a 8.7% increase from 2021. It's not even close?

Rinzler89 2y ago
GDP per capita as a stand alone metric doesn't mean much.
- gizmo 2y ago
  All rich countries have high GDP per capita and all poor countries have low GDP per capita. Zero exceptions. Despite the shortcomings of GDP as a metric it still tracks prosperity very accurately.
  - Rinzler89 2y ago
    You can't get any more obvious than that, but that wasn't my point to say that higher GDP doesn't make you richer than a low GDP, but to say GDP/capita as a number alone is not a measure of wealth, income or prosperity between countries, even in the EU. For example Ireland has by a long margin the highest GDP/capita in the whole EU, and it would make you think the average Irish worker earns more that any other worker in the EU and drives a Lambo, but that's not what's happening. It's because most US corporations funnel their EU money through their Irish holding companies skewing the statistic.
    - gizmo 2y ago
      > For example Ireland has by a long margin the highest GDP/capita in the whole EU No, Luxembourg does.
      - bigfudge 2y ago
        But in both cases it's because of weird corporate tax loopholes rather than the underlying productivity or utility to the median individual.
Certhas 2y ago
Sources please? Are these nominal dollars? World bank data in PPP dollars is reported as 64,600 vs 45,900 here: https://ourworldindata.org/grapher/gdp-per-capita-worldbank?tab=chart&country=USA~DEU~GBR~FRA~KOR~JPN~CHN~IND~OWID_EU27 https://ourworldindata.org/grapher/gdp-per-capita-worldbank?... Germany is at 53,900 there, but a good chunk of the difference is simply that US works more per capita. GDP per hour worked is 74$ in the US vs 69$ in Germany, 53$ in Canada. Sweden is ahead of the US. And the EU also includes countries like Bulgaria, which at 29$ is barely ahead of Russias 28$. https://data.oecd.org/lprdty/gdp-per-hour-worked.htm https://data.oecd.org/lprdty/gdp-per-hour-worked.htm France is at 65$ per hour worked, but Germany and France also have significantly lower poverty and inequality rates by any measure you chose, with France more equal than Germany. The US, of course, remains the dominant economy of the world by any measure. There is no question of that. But the exponential nature of economics, and the structural differences between these different economies, means that GDP numbers compared directly are fairly meaningless. Edit: That last sentence is too strong as stated. GDP obviously matters a big deal in the grand scheme of things, especially as you jump from lower or middle income to high income countries. But it's all logscale. A factor of 2 is a big deal, a factor of 1.2 might not be.

by gizmo 2y ago

World Bank: European Union gdp per capita for 2022 was $37,433, a 3.33% decline from 2021. U.S. gdp per capita for 2022 was $76,330, a 8.7% increase from 2021. It's not even close?

Rinzler89 2y ago

GDP per capita as a stand alone metric doesn't mean much.

gizmo 2y ago
All rich countries have high GDP per capita and all poor countries have low GDP per capita. Zero exceptions. Despite the shortcomings of GDP as a metric it still tracks prosperity very accurately.
- Rinzler89 2y ago
  You can't get any more obvious than that, but that wasn't my point to say that higher GDP doesn't make you richer than a low GDP, but to say GDP/capita as a number alone is not a measure of wealth, income or prosperity between countries, even in the EU. For example Ireland has by a long margin the highest GDP/capita in the whole EU, and it would make you think the average Irish worker earns more that any other worker in the EU and drives a Lambo, but that's not what's happening. It's because most US corporations funnel their EU money through their Irish holding companies skewing the statistic.
  - gizmo 2y ago
    > For example Ireland has by a long margin the highest GDP/capita in the whole EU No, Luxembourg does.
    - bigfudge 2y ago
      But in both cases it's because of weird corporate tax loopholes rather than the underlying productivity or utility to the median individual.

Certhas 2y ago

Sources please? Are these nominal dollars? World bank data in PPP dollars is reported as 64,600 vs 45,900 here: https://ourworldindata.org/grapher/gdp-per-capita-worldbank?tab=chart&country=USA~DEU~GBR~FRA~KOR~JPN~CHN~IND~OWID_EU27 https://ourworldindata.org/grapher/gdp-per-capita-worldbank?... Germany is at 53,900 there, but a good chunk of the difference is simply that US works more per capita. GDP per hour worked is 74$ in the US vs 69$ in Germany, 53$ in Canada. Sweden is ahead of the US. And the EU also includes countries like Bulgaria, which at 29$ is barely ahead of Russias 28$. https://data.oecd.org/lprdty/gdp-per-hour-worked.htm https://data.oecd.org/lprdty/gdp-per-hour-worked.htm France is at 65$ per hour worked, but Germany and France also have significantly lower poverty and inequality rates by any measure you chose, with France more equal than Germany. The US, of course, remains the dominant economy of the world by any measure. There is no question of that. But the exponential nature of economics, and the structural differences between these different economies, means that GDP numbers compared directly are fairly meaningless. Edit: That last sentence is too strong as stated. GDP obviously matters a big deal in the grand scheme of things, especially as you jump from lower or middle income to high income countries. But it's all logscale. A factor of 2 is a big deal, a factor of 1.2 might not be.