Us Economy Vs China Economy

The United States & China Economy Comparison

The United States of America and China are arguably the top two economies of the world today. Since the time Ulysses S. Grant was president, America has been the leading economic power (Bird). When the International Monetary Fund (IMF) released its numbers at the end of 2014 China’s gross domestic product (GDP), based on purchasing power parity (PPP), was slightly higher than that of the United States and thus, to some, overtook the United States as the economic leader. However, in terms gross domestic product (GDP) per capita, which takes into account the population of the country and the average household income, the United States is still way ahead of China. This is because the United States has

Hill explains that countries, like the United States, where individual goals are given priority are more likely to have a market-based economic system and in contrast, collective goal countries, like China, are more likely to have a state controlled economic system. As stated before, China has moved more closely to being a market economy because of the benefits and increase in growth it produces. The major difference between the two economic systems is whether business and productive activities are privately owned or owned by the state (2013, pp. 43-44). A better defined economic system for both China and the United States would be a mixed economy because both have certain sectors of the economy left private ownership and the free market, while other sectors of the economy have significant state ownership and government management (2013, p. 45). However, the United States is closer to a complete free market economy then

Religion can culturally shape attitudes toward work and entrepreneurship, which in turn can affect the economic growth of a country. The religious factor may not affect the economics as much as the political factor but none the less, it does have some impact (2013, p. 99). Christianity is the religious belief that is held by the majority of the American people and thus this religion plays a big role in the economic growth in the country. The United States was founded on the principle of religious freedom and the Christian protestant movement gave way to this freedom. Many also theorize that because of this freedom, Christianity played a major role in the development of capitalism and the importance of individual freedom to work hard and build wealth (2013, p 101). China is predominantly influenced by 3 religions: Confucianism, Buddhism, and Taoism. Confucianism and Buddhism are the main religions that affect China’s economic growth. Buddhism does not emphasize wealth creation like the western Christian thinking but it does not limit it neither. Buddhism is more passive and thus may affect the drive to compete and gain the edge (2013, p. 105). Some believe that Confucianism and its influence on China’s culture may help explain its economic success. Three central values of Confucianism, loyalty, reciprocal obligations, and honesty in dealings with others, are thought to be the main reasons