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Us Vs China Economy Essay

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China Economy VS America Economy
For the first time in over 140 years, the US has lost the title of the world's largest economy to China. China economy is a socialist market economy which is worth $17.6tn, higher than the $17.4tn the International Monetary Fund (IMF) estimates for the US. China economy is subject to market forces which involves capitalists. The US has a mixed economy. A mixed economy hasAdam Smith had emphasized private property rights, freedom of choice and competition that is necessary and fundamental elements for pure capitalism. So for the first time since 1872, it overtook the UK and the US was knocked off the top spot.
The International Monetary Fund (IMF) calculated some figures using Purchasing Power parity (PPP) this enables you to compare how much you can buy for your money in different countries. As money in China continue to be better than in the US, the figure for China is adjusted upwards. Without the Purchasing Power Parity (PPP) adjustment the IMF thinks that China's economy is worth far less - $10.3tn. …show more content…

Mathew Crabbe has spent more than 20 years looking at the country's figures and the facts behind them. Crabbe noticed that if you look at per capita spending power of China that the value of all goods and services produced within a nation in a given year that is divided by the average population for the same year ca be evenly adjusted for PPP, China ($11,868) is still coming a long way behind but not just the United States ($53,001) but also the likes of Turkmenistan ($12,863) and Suriname

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