GDP, PPP, and China's consumer spending problem: Chinese households already have a lot of stuff
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- เผยแพร่เมื่อ 4 พ.ค. 2024
- Mainstream economists, along with most governments, have a simple solution to reduce China's export sector: get Chinese households to spend more, thereby spurring domestic markets for Chinese factories.
But the conventional wisdom suffers from a fatal flaw, which becomes clear when observing China's Purchasing Power Parity, or PPP. China's economy is by far the biggest in the world when measured by PPP, and means that Chinese consumers are able to easily cover high levels of discretionary spending, while still maintaining the world's highest savings rate.
Resources and links:
Visual capitalist, Visualizing the 105 trillion dollar world economy in one chart
www.visualcapitalist.com/visu...
CIA Factbook, Real GDP by Purchasing Power Parity, country comparison
www.cia.gov/the-world-factboo...
Reuters, Yellen faces tough road on China's vast overproduction problem
www.reuters.com/business/ener...
Cost of living in New York City:
www.nytimes.com/2023/05/01/ny...
www.bloomberg.com/news/articl...
time.com/6263989/six-figures-... - วิทยาศาสตร์และเทคโนโลยี
FOX news would call PPP commie math! LOLOLOL Most americans just don't get it since they don't travel outside of US
Hell so many Americans have never traveled outside of the state that they’re living in let alone out of the country.
Yep! And even WHEN they do, they tend to hang around with themselves, so they never really get an understanding of the 'culture' they visit. They see the 'land', but not the culture except INSIDE of their own lenses and go back to the USA not understanding any more about the culture they visited than when they left the USA.. not saying all, but saying most based on the type of comments they tend to make.
They wish they could do commie math. The average adult in the US doesn't have the math skills of a 12-year-old Chinese kid.
@@bizhope007 , But at least they get to spend some DOLLARS outside their home turf and get to see for real the land where the people don't speak English, which makes them wonder, baffled, and even infuriated how the freaking hell that is possible when even the Martians in Hollywood films speak perfect American English and speak English only.
Most Americans are pretty arrogant
Living the American dream in China😊
It's called the "China Dream" says Xi Jinping
100%
It a lot lot more than the so-called American Dream! 😂😂😂😂
@@bemmychan1518 yep, living in a cheap but very futuristic world (air taxis in Guangdong, sky train in Wuhan, high speed rail, digital pay, order everything on mobile, amazing infrastructures of roads and bridges, etc).
I feel smarter every time I watch this channel. First thing I do every morning.
Addicted to this channel
Finally somebody touched on this subject.
Chinese do have more reasons to be proud and contented.
When they were dying of starvation, rampant malnutrition and eating dirt in the 1950s, Chinese smirked as they were actually far wealthier than the enemy Thewest who were so jealous of China's much more higher economy score.
Here we are again.
I was in China before Covid and the bus fare was 3rmb. I went back last month and it was 1rmb.
it's free for me, a senior foreigner.
The 50% senior discount even applies to foreigners at tourist attractions and museums.
brilliant.
india is cheap too but indian train is no good quality. china is unique because cheap yet good quality.
To be honest, even after tarifs applied, a BYD seal EV is 1/2 the cost of a Tesla Model 3. It's a no brainer for me which I would buy, but there are none for sale here in California. We're so afraid of losing our car industry to the Chinese competition that we won't even allow Mexico to manufacture Chinese cars in their country. Who are we to dictate our terms on Mexico? Do we own them? We're just using our sticks to beat around the bush when the real problem is that of sourcing which we have lost decades ago because our neo-liberal system is based on profit and maximizing it require us to manufacture abroad, specially in China where production is tuned for it. Volkswagen understood and have already decided to play along.Western governments need to lower their tarifs on Chinese EV imports if they ever want to transit to clean energy by the date they set themselves. If they don;t the Chinese people will stop buying their cars in their country and they will all crumble without the Chinese market. That fair and square, China knows that and keeps improving the range and reliability of their EV to make sure that their cars are the top of the line without jacking the price like we do. Unfortunately it's not just EV, it's batteries, controllers, solar panels, wind turbines... Everything you need to go green is getting cheaper, but their sale is being sabotaged by us, because we thought we would be dominating this market. At this point we will never be able to catch up. So we keep barking louder and louder, while the world around is getting greener and greener. Our neo-liberal system is really screwing us up.
Well put.
The US needs smart and forward looking leadership. China has been buying billions of products and services from the US, along with trillions of US Treasury. China has never complained.
The countries still compliment each other in many ways. Working together is the only viable thing for the US.
@@7hx89it's not about who's in power but the whole political system. Because the candidates are not chosen by/for the people but only the monopolies.
@@7hx89 Kind of impossible when your leaders are picked from a population of 'stupids' as Hilary Clinton observed.
I'm a business owner in america and my number one goal is to move out of america, we dont have a government we have pay to play system, our roads, schools, crime, health, society and so much more in bad shape only the rich and senators and congress are doing very well and the stock market the rest of the people including small business owners are living a nightmares, working people live in their cars
I am from se asia. The american 'friends' i have are the most easily offended and are always telling others what they think others should do. Please stay in america. 😅
@@firstprib7742 Similar experience. They can have negative comments and views of where they are but just bring up 1 negative issue about their home city (drug issues and feeling unsafe) and they get offended or discard that as "This country is too sanitised".
@@pr0newbie last week this american friend openly stated he supports saonist israel. We are a majority muslim country. If he says this in public he may incur some trouble. Luckily other western non american friends told him off. The arrogance and blindness to other people truly reflect american foreign policy right now.
This is the best explanation of PPP explanation I have heard that is simple to understand. Cheers from the Caribbean
The easiest example of PPP is a McDonald's Big Mac which costs 25 RMB ($3.50) in China, but $6.70 in the USA. Americans pay twice as much for their Big Mac.
I live in NYC and I don't have a solution to this problem. The most important thing is US politicians think the high cost is not a problem. The real problem is Ukraine, Anti semitinism(whatever it means). It is like US politicians are from a different dimension.
It is not a problem to them, obviously as most became multimillionaires at the tax payers expense.
Well Yanks can always vote in a third or fourth or fifth political party to the high office and make changes in the policies. Oh wait... that's all a jumla. Jumla is an Indian term used mostly in political discourses or about political discourses and which means all talk no show.
Same thing in SF, CA.
New York City will become a hollow shell of its former self, probably faster than you think. Same as it ever was. Richard Cantillon could have told you this 300 years ago.
They own multiple properties/assets so why would it be a problem.
I think the nominal US GDP is total Bovine excrement.
Even with ethe nominal GDP, China is bigger than the US, far bigger.
Mercedes Benz, BMW, costs the same in the US and in China.
In China, it costs a lot more to own any car.
But look at this.
the sales of luxury cars in 2022:
Benz: 758,863 sold in China, 276,102 in the US
BMW: 846,237 sold in China, 336,644 in the US
Audi: 701,289 sold in China, 196,038 in the US
Porsche: 95,671 sold in China, 70,025 in the US
If China is smaller economy than the US, just consume cheaper goods,
How can they buy more of these, not just a little more, but far more?
China could afford to build its own space station, in 2-3 years it took?
China is going to the moon.
China even built the San Francisco Bay Bridge new section.
Steel production is 11 times more
Aluminum 40 times more
Automobile 3 times more
Ships, 400 times more
On and on
Then if you travel Europe, America, Chinese travelers everywhere.
Even in Asia, there are so many Chinese traveling.
Yet not so many American travelers even in Mexico.
Did I say that US GDP is total Bovine excrement?
US is lot poorer than what it officially proclaims it is.
This is actually a very good point
One could argue that sales are so large in china because it is a country where many newly wealthy people are buying luxury cars while in the US those buyers already have them
.... but then it goes to show the state of social mobility and wealth creation in each country?
Because 1 American multi billionaire does not buy as many cars as 10,000 chinese millionaires.
If you factor into population difference we’re still buying more luxury cars per capita
@@nickl5658 Yes. Most of the wealth in the US is controlled by a few mega-rich families!
This explains why a financialized, deindustrialized economy is unsustainable in the long term.
Always brilliant in his analysis. If you measured GDP based on PPP instead of currency, the Chinese economy would have already surpassed America.
They have surpassed the US since 2014 in terms of PPP GDP.
That’s why US keeps changing the goal post to look better than it is!
Even on nominal terms China will be higher than US. It’s World Bank, IMF, Federal Reserve who bloat the economy with false statistics. US position is similar to a rattlesnake pretending to be bigger just before getting squeezed and swallowed by the King Snake
Excellent explanation.I actually told my Chinese friend's daughter who had wanted to study economics in the US some years back not to do so because it would be a waste of time. Your video just proved it.
We are working on 5 to 1 ratio when we try to figure out how much money we get to spend on the cost of making a product here in China. What the consumers pay for $10 for an item, we have about $1.8 - 2.0 to manufacture it. When people say cheap Chinese products they did not realize it is the American importers like Walmart, Target and all the other brands that are trying to squeeze the factories here for every cents they can get so they can make a higher profit. We're often being ask to "innovate" for a "better" product design than last year's model and only have 90% of last year's cost to work with. Factories here routinely are making 10-12% profit on the $2, which means a $10 item, factory may make $0.2 -0.25 in profit.
Apple says yes and more n
If Americans heard this about any country with a low standard of living with brown skinned people, the knee-jerk reaction would be to call it exploitation. These days China is judged be a double standard.
Thank you for explaining why Chinese GDP by consumption isn't going to grow by much every year because they are already spending as much as a typical person in EU or US.
My son is a doctor in Australia and he earns at least twice as much as I do after currency conversion but I live a better life with a much bigger house, twice as many cars and travel just as often.
Your son grew up but unfortunately as an idiot.
I’m looking around my home and except for the old clay tile roof and woods, I see everything else was made in China. Sounds like this “overcapacity” thing has been in place for a long long long time.
And I am happily enjoying it everyday.
Me too 😆😆
Same here. My Chinese made appliances are normally one quarter/ one third of the cost of other popular brands and they serve me very well!
Totally agree with your analysis. Once again, it's the failure of Americans to recognize the overall economic scenario in China. Or maybe it is there deliberate attempt to blame the Chinese for not being like spendthrift Americans. Overall, where ever you are in this world, no matter what the standard of living, the Chinese tend to be conservative consumers and nearly obsessive savers. It is no suprise that Asians in Ameriica also tend to save or invest their income.
Because in the US....
Other than the basic cost needed by worker to survive....
The Shareholders earned too much
The CEO salary & bonus too high
The store rent is too high
Then move to socialist Venezuela
@@765lbsquat This is not about socialistism. It is all about corporate greed! If you look at the ratio of CEO compensation to the average worker compensation, you will know that is where the problem is.
I still remember the article on the retired CEO of GE, Jack Welch, retirement package. It is 417 million dollars in 2001.
How can one person have that kind of retirement package; not to mention how many millions he made when he is working.
The average compensation of CEO's in US is about $1.3M. While it is much higher than typical workers (say 20x), it does not really change the earnings of typical workers that much. The shareholders's return can be measured by stock market performance, roughly 10% in average in last 20 years. After ~30% taxes, it is better than US treasury bond by 4%. The issue is not who make more money. Those who makes a lot of money really can not use the earning. The earnings are actually returned to the society by their investments. The issue is US living standard is not sustainable. US got there after WWII when everybody else came out from ruin. But, American workers have never been more productive by themselves. Their productivity was caused by the leading technologies and capitals. When other countries caught in both, American workers can not maintain that edge because of poor education and infrastructures. This actually is the reason why CEO and shareholders are responsible for all the growths in US and they are rewarded accordingly.
@@DragonYang01 Agree! Then the question is how to set up a system to avoid the issue in US. if the capital influence the presidency and election of Member of parliament, it will not be sustainable for the life and development of majority.
I read some years ago, where a longshoreman leader thumbed at a Chinese proposal which wanted to introduced the 8 TEU-capacity quay crane to a port [in Marylands ?). He said every crane could lift only ONE BOX at a time and each box must be touched by 4 longshoremen; otherwise, we stop work! Hence, the capacity of Panama, even after "expansion" to only 13,600 TEU capacity ships would not do much, as the monster 24,000 TEU ships would face problems in those ports!
Thanks for the insight and education. We Arm Chair Generals need to hear more from on site businessmen such as yourself. As you occasionally point out in various ways, our local news is just wrong and distorted. We value your frequent and well spoken presentations.
I would add that Chinese discretionary spending is much greater than Americans. 90% of Chinese own their home and 80% of those homeowners are mortgage free. Further some 20% of those homeowners own more than one home and those with a mortgage paid at least 50% down with a mortgage in the 10 to 15 year range, so are less likely to default on their mortgages.
Don't forget that the GDP of the US economy is skewed significantly by its substancial finance component.
The host of these podcasts is one of the most moral and humane businessman I have ever listened to. Simply, thank you - for giving me hope that this world will not succeed based on racism, hate and lies.
WOW! This is an eye-opener. As someone else commented below, what an education we're getting from Prof. Walmsley.
Very informative. The more the USA decouples from the PRC, the higher prices will rise with the reshoring and friend-shoring of supply chains.
Many greetings from Germany 🇩🇪 😊👋👋
Rent for one bed room app in NY or SF may cost $3,500 to $4,000 a month. Rent for a similar app in Shenzhen or Shanghai may be only 20% though the environment is much better. No homeless people, no piles of trash, faeces, pee smell in the neighborhood. No car thefts, no shops looting. But for each unit rent in US boost the GDP 5 times more than a similar unit rent in China.
Also add the “productivity” of massive numbers of lawyers and bankers. The US would be 100-1000x greater than China.
You are putting complex matters into plain and simple language. Thank you for another excellent analysis.
This is why the minimum wages has increased years on years but our lives hasn't really changed much..
That is exactly what is happening in Canada as well. The rents in the city of Vancouver cost 3 times higher than other cities. Single homes are $3 million and up, whereas nice single homes in other cities are priced at ~$700,000. Wages are the same across Canada.
Canada has generations of poverty to look forward to.
My mom said I am an idiot, because I didn't take a job in NYC. She said you will make more there. She doesn't understand how much it costs to live in NYC. I make 35% less in the state where I live, but the cost of living is much lower.
The people in China have a significant advantage, because the there is NO LAND SPECULATION. Land speculation causes inflation. Prices are determined by the price of real estate. Businesses have to pay more rent, or lease. People have to pay more for rents and mortgages. This causes the price of labor to go up, and this causes the prices to go up.
Freedom sure got expensive...😅
US freedom is to make a choice between two turds.
@@nickl5658 ... Well said, lol.
Feedome.
if what you said is true - ok! but it is not, what freedom?
Don't forget the low housing cost, utilities, and public transportation. I take the bus in Shenzhen and costs me RMB 2. In Chicago, it costs me USD 2
I always laugh when I see figures about the US printing trillions of dollars next to stories about how the US GDP is increasing. Like yeah... you don't need to increase the amount of stuff you produce or the services you provide you can just the print the money and voila the GDP magically increases. Its amazing
Yeap.really amazing.nothing is better than dollar.
China....nicer choices of Foods 😊
Nobody talks about the 'Costs of having a particular job'!
❤❤❤Kevin, in little over 5 minutes you clarified the BS that the MSN wants us to believe👍
I would add to your discussion, Brick and mortar outlets and whole shopping malls are going out of business or moving on-line, cutting cost dramatically but they still charging high prices.
Thank you for explaining the difference of PPP and Nominal GDP, a lot of people just go by the GDP thus they tout that the US is number one, they don't think that their GDP is big because everything costs big. There is also that their GDP is mainly FIRE, services, and government spending which does not produce or do a lot for the welfare of the people.
This helps people in the west and the US get an understanding of life in China. Big metropolitan cities in the west like New York are expensive to live in, let alone live well in. I'm an expat in China and I feel better about not earning a solid 6 figure income, knowing that my 5 figure salary makes me live like a rich man in China.
Your reporting is commendable for the following reasons : they are brief and to the point; they are supported with with brief data sets that can be independently checked; they are not condescending; the comparisons with western equivalents are explained and are accurate. I hope and trust you retain this format. Thank you.
china now is the largest producer and consumption of products in the world
oh and overseas spending
the US's oversees spending is wars, bombs, bases, political intervensions, propaganda campains, color revolutions and about every thing that can harm another country.
meanwhile china's oversees spending is building infrastructure incluuding high speed rails, ports and air ports, schools hospitals and investments in other countries.
its very clear that the ones who always shout about freedom and democracy and being "civilized" are the complete opposite of that, in fact they are the worst cancer this planet has ever gotten, the west
Thanks for the analogy and illustration of PPP. GDP is certainly not a representative indicator of living quality at least not for the common working class in the west. A job that pays 100k+ salary is not lucrative as it used to be with soaring inflation and taxes on top especially where I live in a heavily taxed country. I reckon the same principle would apply to tier 1 vs tier 3 or 4 cities in ch1na where money would not go as far in the larger metropolitan cities but food, goods and services and rent remain much more affordable than NYC.
Not much value in 100k gross salary (before deductions) if an apple or loaf of bread costs 5$ ea…
Thanks. This is a very important topic. Most economists are dishonest here.
In nyc, you simple can’t afford a house/flat being a 9-5 person
Greetings, excellent information. Thank you
Keep up your excellent work! Thank You.
Thank you. You explained an economic concept in plain language. Mind you, those outrageous lawyer fees might have contributed a lot to the American GDP too.
Excellent way to explain
Very interesting hard facts. Thankyou for your hard work.
PPP is not even a good way to compare the US and China for several reasons.
1) GDP accounting is done differently in China and the US.
Chinese GDP is counted very conservatively with very minimal imputations of economic value. For example Chinese GDP does not count owner's equivalent rent.
2) The ability and willingness to count GDP is very different between the Chinese government and US government.
Chinese service sector is ludicrously low by official count with a ratio of less than 1 to 2 between industry and services. This cannot be real. Services are a derivative of industry and there's no way to only derive less than $2 of services per $1 of industry. It this were true people need to spend much more of than 1/3 of their income on industrial goods (as even the sale of purely industrial goods requires services like distribution and marketing). Even when you invest you cannot only invest in industry. A huge portion of investment, such as education and training, require services. There are only two ways to account for this. Either services are way cheaper than industrial output in China or service output is severely undercounted. Both of these things are true. Chinese tax policy grossly inflates the prices of industrial goods within China by supporting an international price for industrial goods and an internal price for services. Chinese tax policy grossly under taxes services with most services provided by small businesses almost escaping taxation all together.
3) GDP counts economic value by using marginal prices which grossly undercounts the real size of the Chinese economy. China is massive and whatever it learns to produce, it produces at massive scale and shockingly low cost. That means whatever it starts to produce drops significantly in price which make raising its nominal GDP very difficult. However this effect is an illusion which will go away in the long run as China learns to produce everything and the price of everything drops. An easy way to see this is with an example. Say China learns how to make TVs. In doing so, they increase the supply of TVs in the world by 10x but that also drops global TV prices by 5x. China has actually increase the real economic output of the world in TVs by 10x but has only grown the monetary value of TVs in the world by 2x. Other countries can avoid the loss of economic value from making TVs by moving to another industry that China has yet to enter (say semi conductors or aerospace). However in the long run the Chinese will learn to make everything and enter every industry. There will be fewer and fewer industries to hide in from Chinese deflation until there is no place to hide from it at all. Then it finally dawns on you that the real size of the Chinese economy relative to you is an order of magnitude larger than you thought it was.
Thank you 🙏. You explained economics in a simple way.
Thanks for enlightening on PPP Kevin😊
In this excellent video Kevin puts his finger directly on the reason and non-comparison between the cost of living in the US and China's "spending problem".
I have never understood why economists, governments, financial institutions, and corporations choose nominal GDP over PPP when comparing national economies. It is practically a worthless measure for this purpose.
The strength of any economy lies in how much you can buy, not in market exchange rates. Nominal GDP can be inflated in various ways to give a false picture of economic health. It doesn't even necessarily reflect industrial/manufacturing output, _especially in a service-based economy._
Because they want to keep up appearances.
Powerful truth. Thank you!
Great simple examples to explain financial terms and situations which make it easier for people to understand. Awesome. Agree that most things are affordable in China except one thing which is the cost of a property especially in the first tier cities. Wish they could have succeeded in making government subsidized public housing like in Singapore.
The difference between Chinese and American hospitals is that Chinese hospitals use real doctors, while American hospitals use CNAs (certified nurse assistants). The cost per doctor visit is 100 yuan, roughly 14 USD. American hospitals are profit-driven, while Chinese hospitals are people-driven.
Mr Walsmsley is such a unique analyst
Chinese high saving rate is a virtue that has been taught throughout generations. They think about posterity, saving for rainy days... then there is the virtues of hardwork, education, respect for elders, looking after the community. These virtues are evident in Chinese families all over the world. China will just continue to progress and prosper over long term
Well said
But c consumer paid 8 times more is because the systems broken
My neighbors son moved to NYC his rent is 3500/m for a studio apartment 😢
Excellent reporting. I really enjoy your videos.
I am getting paid a high salary working remotely for a large US company in Texas.
I live in an inexpensive country in a nice inexpensive beach house - fully paid
I do all my shoppings in China online on aliexpress and banggood. They ship everything from china to me directly cost free
I'd say that I have a nice life. I make great US money, live in a cheap but nice area and shop cheaply in china. LMFAO.
You're a genius, bro. I'm retired, I've been studying Soil Microbiolog as a hobby and my main activity is my organic vegetable garden. Do you need a gardener? LOL.
sure ...to make chinese to spend more instead save more,....when a typical ic board like: vnh5019 shield
use to cost 17$ ( in china) and 38$(in north america)...and now no vnh5019 shield is available in china..
and in europe and north america...MIN. PRICE IS 80$ AND MAX IS 205$ ...TAKE YOUR PICK,
i purchased 15 units when it was 17$(including shipping) 3 years ago... yellen+blinken + AMERICA ...ENJOY
btw china companies selling these HAVE TO pay portion of that 17$ to america's "company"...it is NOT
just chinese gets ALL the profits...and now NONE TO CHINA AND DEFINITELY TO america's "mother company"
Point taken. Sage advice yet again.
The US consumes most of all countries on earth. And it saves little. Most purchases are done on credit no less. The whole society is mired in debt from government of all levels to individuals. In other words, the economy is nothing but a house of cards. There is no sign of it reining in its irresponsible spending anytime soon.
I sure hope the Chinese don’t emulate this pathological aspect of the American culture.
I sure hope they keep their superior discipline of living within their means, spend rationally and ecologically and most importantly save for the future.
There is nothing wrong with being the biggest exporter on earth. That’s how you accumulate wealth as a nation. What’s wrong with that? You can always give your friends a helping hand if you have plenty in your bank account.
China, don’t let anybody else tell you otherwise, least of which coming from the American economists and “experts”, clearly they know nothing yet they like to lecture others all the time.
Well said
Dude you are prolific. Coming up with new perspectives and the empirical data as back up to your assertions.
Unbelievable sir
Great explanation
The New Yorkers can declare independence, so as to make NYC great again in every respects.
This is the best explanation I have heard about PPP. Amateurs think GDP is the most important measure of an economy but it is not a good measure for comparison. Well done on your clear explanation! The NYC vs KC analogy is perfect.
BRAVO - Perfectly stated!
You got 600 million Chinese living on 1500 yuan a month - they've got no money. Even 10 years ago, a pot of spicy beef broth was selling in a low-level Zhengzhou restaurant (Third tier) for 100 Yuan.
Thanks Kevin
When I travelled in China several years ago, I was told that everything cost in RMB in China is similar to those cost in USD in US. At that time, the exchange rate was around 6:1. If these countries live entirely isolated, they enjoy the same living standard. However, US buys more stuff from China than the other way around. This creates more job opportunity in China. The only way for US to maintain an edge is to improve its productivity, often meaning less workers for more work. Amazingly, US was able to do for many years by shifting its industry to service from manufacturing. The issue is that, those without proper education could not catch up. American people would rather believe their jobs are taken by Chinese, than improving their skills.
It's a similar situation here in Vietnam. I'm an Australian living the good life with a wonderful Vietnamese wife. Danang is a paradisiacal city.
Excellent
PPP GDP is the only relevant GDP number. It effectively excludes the various distortions that are included in the standard GDP calculations.
China exports products to the rest of the world because the cost of production in China is lower than the cost of production in other parts of the World.
BRAVO FOR REEDUCATING OUR SELF ABSORBED SOCEITAL ZOMBIES''
Good work. Thanks
my mom is from qingdao! i spent a few months there around a decade ago, but i’ve heard it’s changed significantly since then
Seriously, this is a problem only communism can solve.
Agreed 👍🏻👍🏻
The middle man (capitalist) were too greedy and make the economic stagnation
China is socialism with Chinese characteristics, not communism
There was a commonwealth Empire. Nowadays a new common prosperity coalition is forming.
Excellent explaination
If China is overcapacity, then why the prices of Chinese products rise？ It contradicts the law of demand and supply.😅
Middlemen. Your phone was built for $50-$100. Apple slapped $2000 on top of that.
Lost money is no business.
Trump raised high tariff on Chinese goods ,now everything in Walmart is more than 3 times high,and he said making America great again but really hurting people`s pockets
Incorrect, that is not how that worked and still doesn't work that way.
How does it work? @@topsuperseven7910
This was a really good video, but it would have been nice if you had used a 25 RMB ($3.50) Big Max as a concrete reference point. Every American knows what a Big Mac is, and what it costs today ($6.70 in California). The Chinese pay half as much, so the Big Max Index makes for an excellent segue into broader PPP analysis.
WRT Chinese "overcapacity," as 'the Factory of the World', China supplies industrial goods that would be prohibitive to produce domestically in much of the Global South due to the high upfront capital costs and lack of skilled labor. That is, in Africa, it's not possible to produce a $100 cell phone from the ground up as they do in China without spending vast sums to educate workers, build power and transportation infrastructure, setting up the supply chain, etc. even before breaking ground on the factory itself, much less outfitting it with the necessary equipment. They simply don't have the capital to do that, which is why China's Belt & Road Initiative is so powerful. The BRI finances new infrastructure at low rates over long periods, allowing those countries to have the foundation so that one day, a factory can be built and operated efficiently.
many American families still received gov money for their loved MIA men in the American wars in Vietnam, Laos, Cambodia and many other places around the globe.
Officially, an American service person should not considered as a KIA until their body or tangible evidence was found.
This financial casualty is missing on the mainstream media.
There are many emotional casualties as well for the families who receive the gov money as a reminder of their beloved one are missing.
Chinese top economists and political bodies say the Chinese consumption needs to grow. The Political Bureau of the CPC Central Committee convened a meeting on April 30th, and according to the official document, it first talked about expanding domestic consumption and the massive plan for large-scale trade-in of consumer goods to stimulate consumption. Jin Xiandong, director of the Policy Research Office of the National Development and Reform Commission, said that driven by policies to expand domestic demand and promote consumption, "various regions and sectors are continuously innovating consumption scenarios and optimising the consumption environment,".... How to interpret that?
It really depends on the cities and the goods or services. Uber in san Francisco is about five time higher in Shanghai. For a five miles trip it will cost me about 15 dollars in San Francisco, but only 2.3 dollars in Shanghai.
I love Kansas! The US needs and should work with the hardworking people in China. Great Ep.
Hey, what's with the subliminal changing on the out-tros?
Meanwhile in 'Murrica - waiters chasing customers with knives for tips. 😂😂😂
Chinese families always put housing the No.1 priority, then food, education, saving, car and holiday are the last. Average household saving is more than 20%, even if they have govt provident funds, unemployment, housing and medical insurance. Chinese govt also spend their money very wisely to make sure evety yuan invested will bring back several times more.
Well obviously if US consumers are paying 8x the price for the same item then the US dollar is 8x overvalued against other currencies.????
How do most of you guys still make profit, even with the downturn of the economy and ever increasing life standards
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency and stocks, through the assistance of my discretionary fund manager
Mrs Nancy Williams Laplace
This is correct, Nancy's strategy has normalized winning trades for me also and it’s a huge milestone for me looking back to how it all started..
Nancy is considered a key Crypto Strategist with one of the best copy Trading Portfolios and also very active in the cryptocurrency space.
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional
PPP is real, it is what you can enjoy!
Methinks it's a conundrum on how to arrive at a fair comparison. Clearly GDP is a crude measure at best & PPP would seem closer to the mark. However, PPP focusses solely on what the buying power is domestically. Some allowance should be made for buying power overseas where funds are measured in similar terms, like USD - the US would have an advantage over the CNY.
Perhaps industrial output should be factored into the equation + trade balances.
This is the era of CHINESE DREAM.