Why is us per capita GDP so much higher than other major developed countries when it is close to $70,000?

2022-05-21 0 By

In 2021, China’s economy rebounded strongly and made a number of breakthrough achievements. For example, per capita GDP exceeded the global average for the first time and reached 12,600 USD, reaching 63% of that of the primary developed countries.In the US, economic data are equally impressive, notably GDP per head.In 2021, THE GDP of the United States increased by 5.7% year-on-year, and the nominal GDP increased by 10.29%, reaching 23.04 trillion DOLLARS. Based on the population of the United States, the PER capita GDP of the United States reached a horrible 69,600 dollars, close to 70,000 dollars. You should know that the United States is the third most populous country in the world, not millions or tens of millions of people.With a population of over 300 million, it is very impressive to reach this level.There are seven developed countries with a population of more than 50 million, and the US is the only one with a per capita GDP of more than 60,000 US dollars.Germany’s per capita GDP in 2021 will exceed 50,000 US dollars and reach 50,700 US dollars, while Japan, France and the UK all have per capita GDP between 40,000 and 50,000 US dollars.South Korea, Italy between $30,000 – $40,000.Us GDP per capita is much higher than other major developed countries.So why is U.S. GDP per capita so high?The first is unquestionably productivity. The United States has been the most powerful country in the world since world War II, when European talent flowed to the United States.The United States became the global center of technology.After decades of development, the United States has become the world’s highest technological peak.Combined, Europe’s tech companies are worse than America’s.American multinationals such as Facebook, Apple and Google have swept the world.The United States really does beat the rest of the world’s major developed countries in terms of productivity.The second is the dollar hegemony of the United States, which built a financial system after World War II.This system gives the US a tight grip on the financial sector.The US can exploit the system to dilute risk while reaping other countries’ wealth in a way that no other advanced country can now.The United States can print trillions of dollars, trillions of dollars to stimulate the economy, or even directly send money to stimulate consumption, other countries dare to play this way long ago the economy collapsed.Now the SIZE of US debt has exceeded the $30 trillion mark, which is six times the GDP of Japan and twice the GDP of the 27 EU countries combined in 2020.This is equivalent to direct investment of 30 trillion US dollars into a country, 176 times the amount of foreign investment China will absorb in 2021.Such sufficient funds will certainly bring huge investment and consumption stimulus, naturally can continue to pull up GDP.Third, I think another big factor is the population of the United States.With a population of 331 million, the United States is the third most populous country in the world, next only to China and India. The abundant population also provides a huge market, especially as the United States is a high-income developed country with a larger market.After World War II, the United States has always been the world’s largest consumer market. In 2021, China’s consumer market soared by about $1 trillion to $6.83 trillion, while the United States unexpectedly reached $7.42 trillion. Of course, this scale has a lot to do with the direct distribution of money during the EPIDEMIC in the United States.We all know that the size of the U.S. population is largely due to immigration.The United States has absorbed the best minds and wealth from around the world, which is an important reason for its long-term competitiveness.