Tag Archives: China

GDP: Americans (over) consume, Chinese (over) invest

GDP = C+I+G+NX.  Sadly, that is the only formula I remember from my undergraduate macroeconomics class, but thankfully, it is the most important one. The Gross Domestic Product  = Consumption + Investment + Government + Net Exports (Export-Imports).  It’s worth remembering, even if you don’t work at the World Bank or teach economics. USA =… Read More »

How big is the Chinese economy?

These graphs from the Economist describe China’s economy, growth and influence. China certainly has issues (e.g., demographic imbalance, rich-poor disparity, censorship) but you have to admit, China has been putting up some incredible economic numbers. Chinese economy is HUGE. 1) Currently, the Chinese and US economy are approximately the 12-13% of the of global economy… Read More »