China vs. american economy

Chinas economy will become the biggest in the world sometime very soon. According to the World Bank, the size of Chinas economy is $10. 1 trillion, compared with $14. 6 trillion for the U. S. , based on purchasing power parity (which adjusts exchange rates to account for the different prices people pay for goods and services across countries). simply China is narrowing the gap in a hurry. Over the past 10 years, the annual real growth of Chinas gross domestic product averaged 10. 5 percent, compared with 1. ercent in the U. S. The Chinese economy increased at an annual rate of 9. 6 percent in the first half of 2011, vs. a rate of little than 1 percent in the U. S. Americas days as top dog of global output are numbered, at best. Should we care? People from Thomas Friedman to Niall Ferguson asseverate the looming change at the top of the world economic rankings as a bellwether of broader American decline. We are the United States of Deferred Maintenance. China is the Peoples Republi c of Deferred Gratification. They save, invest, and build.We spend, orrow, and patch, complained Friedman in a juvenile New York Times column. And yet having the worlds largest economy isnt all its cracked up to beand you need look no further than the history of China and the U. S. to analyze that. The swelling size of Chinas economy may be a source of pride to the Chinese people, but America is still by far the amend place to liveand will remain so for a long time. Although economists are skeptical about Chinas ability to sustain its current levels of growth, most check into it is only a matter of a few years before the Middle Kingdoms