Monday, June 25, 2012

World Productivity Distribution

First what do they claim to be measuring?  GDP is reported for a year, and is the sum total of all goods and services a country produces. Wonder how he got the figures for the Mayans? USA produces more war materiel then the next seven biggest countries, and counts massive financial and legal services.  It may be huge, but it is obviously not sustainable.The graph was created from a research letter by JP Morgan Chairman of Market and Investment Strategy Michael Cembalest and shows GDP growth since 1 AD

Second, they never miss a chance to blame population


For the majority of human history the most important factor in economic growth was the relationship between births and deaths.
If there were too many births then there was not enough food to go around and without mass production techniques people went without until there was starvation or disease.




If you ignore war, that might be persuasive.  But the bad times, shortage, death by disease are always proximate to war.

Finally, if you divide GDP by population you get a popular standard of living rating, and so we leanr Hong Kong citizens are on par with USA citizens.  Except the people of Hong Kong are experience economic benefit of more of that ration since it has none of the military and little of "services" component.

If you define wealth as what range of goods and services and the degree of access thereto by the population, then USA looks no where so good.

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