We previously looked at Countries GDP as US States.
Today, we see GDP of the top four national economies in the world (after the US), expressed as US regions by GSP.
Via World Bank.
4 National GDPs as US Regions
May 15, 2008 2:30pm by Barry Ritholtz
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/
What's been said:
Discussions found on the web:Posted Under
Previous Post
My First TV ReviewNext Post
Kudlow on Ritholtz
The important take away is, 20 years ago China’s GDP was only that of Idaho, now look at it…(only slightly facetious), in another 20 years??
That infographic is a bit puzzling. Japan has a larger GDP than Germany, but the parenthetical note says +$40b. It’s also misleading since it appears they are using state GDP instead of state area, so while Japan’s GDP is a third greater than China’s, it looks smaller on the map.
That is great chart porn.
From the comment accompanying the original post, by secondhandconjecture:
“I should add that the parentheses below each country name is how much additional money you’d have to add to each country’s GDP to make it genuinely fit the US region assigned. The amount of money that’s left over after plugging these countries in is roughly equal to the GDP of Russia, the 11th richest country in the world. That in itself is pretty amazing.”
I wonder what it would look like after reversing out the fake revenue that generated the bad debts (from all countries).
Instead of fitting neatly together, do those geographies start to overlap?
Not entirely relevant, but it reminds me of what Cramer wrote yesterday afternoon about how “The Heartland Thrives While the Coasts Wither.” Insightful? I suppose if you limit the “coasts” to certain inland areas of California and the condo dominated beach areas of Florida, and you limit “heartland” to those areas within commuting distance of a multinational exporter, then he’s right. Otherwise, I would have to say it’s self-serving sensationalism, which is just so unexpected from him. : )
>> so while Japan’s GDP is a third greater than China’s, it looks smaller on the map
Maybe because “China” instills more fear/anger these days than “Japan” and so it makes for better copy to feature a bigger China?
I have no idea if that was the motivation for giving Japan the dense NE corridor and thus give China more space. Could be. But, maybe not. Just speculating.
Swiss cantons as countries:
http://www.avenirsuisse.ch/content/avenir-aktuell/0804-eins/mainColumnParagraphs/0/document8/A0800557_Avenir%20aktuell%201.08%208.pdf
Interesting perspective/comparison. Good poop, Barry!
Another viewpoint on China is not so rosy…per UK Telegraph:
I confess that I do not speak with authority on China, and may be wrong to doubt the miracle — so much like the Japan hype of the late 1980s to my jaded eye.
I look to clever people who know what is going on, such as Dr Kwan Chi Hung from the Nomura Institute — an esteemed figure in the Far East, and himself Chinese – who believes that China’s long-term prospects are “horrible”.
China’s workforce will peak in seven years (the delayed fruit of the one-child policy) and then go into the steepest downward spiral ever seen by a large nation in peacetime. It will, and do so long before it is rich. This demographic implosion cannot be reversed quickly.
Dr Kwan says China enjoys a dreadful return on capital because credit is still allocated by a Communist banking system pursuing political aims.
This is how disasters on a truly huge scale are incubated. Competitiveness is in any case slipping. It is already cheaper to produce cars in Japan than China, he says.
Charles Dumas, global strategist at Lombard Street Research and author of a new book `China and America: A time for Reckoning’, says China must soon slam on the breaks as inflation hits 8.5 per cent, or let overheating get out of control. “The Chinese will have to slow sharply, and it will start in earnest this autumn,” he said.
Crisis Rotates
But Barry, are these GDP comparisons adjusted for the American Peso’s valuation relative to the Euro, Yuan and Yen?
Japan is the #2 economy and the Northeast is the wealthiest part of the US. If they had put it on the West coast it’d probably take up that entire half.
That chart gave me a start, Barry.
It reminded me of a page in a pocket atlas I have – dated about 1910 or so.
The page that came to mind was one showing the continent of Africa divided up amongst the European powers.
Steve Barry’s comment on China’s potential weaknesses reminds me of the work of Susan Shirk, who contends that the fragility of China is more dangerous than its strengths. She’s thining more in terms of political stability and international cooperation than in terms of economics, but those are hardly unrelated
Her book: http://www.amazon.com/China-Superpower-Internal-Politics-Peaceful/dp/0195306090
Ottnot…every underpinning of the new bull market…China, Housing, new debt products, will soon be history.
“China’s workforce will peak in seven years (the delayed fruit of the one-child policy) and then go into the steepest downward spiral ever seen by a large nation in peacetime. It will, and do so long before it is rich. This demographic implosion cannot be reversed quickly”
Nope. They are going to have better paid jobs. That’s all.
39th out of 40 days now QQQQ could not reach its 100 day MA for volume. Unless someone proves me wrong, I believe this has to be an all-time record for feeble volume.
If you think about the chart in terms of geography, US production per square mile of sovereign land is much, much less productive than Japan, Germany and England. However, I believe China is the size of the US, so China uses a little less than half the land to produce a quarter billion more in GDP. Interesting. We have a lot of unproductive space in the US, which is good – means more future capacity. Where is Japan going to find more land?
Matt:
You make the mistaken assumption, and this chart feeds on the mistaken assumption, that there is some correlation nowadays between land and production. In an information economy, this ‘fact’ simply isn’t true.
In many ways having less space is more productive, as it puts more people in contact with one another and reduced transaction costs; think of all the business that occurs in New York simply because everyone is there.
“China’s workforce will peak in seven years (the delayed fruit of the one-child policy) and then go into the steepest downward spiral ever seen by a large nation in peacetime.”
That’s why all of the talented Chinese emigrate.
As with Japan, many global threats seem much more dire when you are in the midst of them, as we are now, with out balance of trade issue with China. I like to think that the US COULD retain its global stature– perhaps by achieving adult leadership in Washington in January:
“1-20-09: don’t let the door hit your behind” –the Peace Penguins
Nice
Next time they should try to show the shrinking US GDP on the EU map, on hard currency basis, as EUR or RR Rubel..
Erasmus I agree with your insight.
Steve the decreasing population in a non-capitalist country does not have the same problems as say here in America. Here we rely on housing and infrastructure builds with home accents as growth in GDP.
Other capitalist nations that supply their own needs are in the same situation. Hense my anxiety; why we here in America feel after the factory has left the country do we see GDP growth futures here?
Pop growth has its troubles here too. We are now experencing a population that with manufacturing automation has fewer places to earn a solid living. Thats automations purpose; Replace expensive humans.
A worker can be created in as little as 15 years. Then that worker needs intake for another 85 years from a decreasing pool of resources. Thats where we are now; Inflation by population drain on its needs.
My parents created a retirement system that post WWII destruction; worked for their generation best. The first segment of boomers have some cream; then?
My gut reaction to this chart is:
“Decoupling? I think not.”
AT
you better compare 07 or 08 Europe Zone and US GDP
Tufte would be proud.
I dont’ think it is misleading at all. I think everyone in the US at least knows where most of the GDP and capital is coming from within the states.
As to the other comment…in 20 years China’s high net worth population will outnumber America’s middle class.
– Richard
Richard Wilson
Hedge Fund Consulting Blog
p.s. I’m adding the Big Picture to my Blogroll right now, thanks for this article
So, when is there going to be a chart showing the U.S. as part of the biggest world economy, the E.U.? Might be good for grins and the heart infarctions of right winger bloggers.