Leviticus 26:18-20 – ‘And after all this, if you do not obey Me, then I will punish you seven times more for your sins. 19 I will break the pride of your power; I will make your heavens like iron and your earth like bronze. 20 And your strength shall be spent in vain; for your land shall not yield its produce, nor shall the trees of the land yield their fruit.
Sorry, America. China just overtook the US to become the world’s largest economy, according to the International Monetary Fund. Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen. Basically, the method used by the IMF adjusts for purchasing power parity, explained here. The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist’s Big Mac Index is a great example of these disparities. More