Most countries' official GDP data significantly diverges from reality.
Nevertheless, some people frequently cite per capita GDP to argue issues, seeming like this figure holds more explanatory power than the lived experience of the quality of life.
Indeed, comparing GDP data across years makes sense for the same country.
However, for GDP comparisons between different countries, it's almost meaningless.
The reason lies in the different GDP calculation methods and varying inflation rates among countries, resulting in vastly different actual effects.
Firstly, let's talk about statistical methods.
China's GDP calculation is based on the production approach, which measures the wealth created in the production process.
In contrast, some developed countries' methods might include calculating "imputed rents" for owner-occupied housing, counting a significant portion of individual service sector incomes, and portions of grey and black incomes in their statistics.
Thus, in some countries' statistics, these incomes might constitute a third or a quarter of the total GDP.
Secondly, regarding inflation rates.
In recent years, there has been rampant inflation globally due to excessive printing of the US dollar.
Prices have skyrocketed in many countries, including the United States.
Especially in some developing countries, prices have doubled or even tripled.
In the retail sector, these countries, particularly those printing money like the United States, have gained higher GDP due to rising prices.
For example, in March, the US CPI and PPI were 8.5% and 11.2%, respectively, reaching their highest points in 40 years and historical highs.
The Eurozone's CPI for April preliminarily reached 7.5%, rising from the previous month and setting a historical record.
The UK's inflation rate rose to 9% in January, slightly higher than Poland's inflation rate, which is slightly higher than China's GDP, at 11.4%.
Meanwhile, Turkey saw an almost 64.86% increase within a year. Brazil's prices have doubled in the past few years.
In comparison, China's CPI rose by 2.1% year-on-year in April, with the core CPI rising by 0.9%, marking a sixth consecutive month of decline.
Lastly, let's discuss the actual utility of GDP.
This is very delicate and can easily spark controversy.
For example, some wealthy Middle Eastern countries transfer money in the form of dollars to funds in New York or London for investment or buying companies and properties in the United States or Europe, rather than investing in infrastructure and education in the Middle East.
Similarly, some small to medium-sized countries, like Egypt, Kenya, Mexico, and South Africa, have been drained of funds and talent due to centuries of colonial history.
Local elites, whether in real estate or corporate profits, flow to the colonial powers.
Thus, the GDP of these countries has been spinning in place, unable to retain profits or build infrastructure, provide basic social security, education, and healthcare for the people, or offer sustainable development opportunities, effectively becoming a talent, rent, and labor pool for the colonial powers.
As a simple example, 90% of the large industries in a certain African country are monopolized by a few large families, backed by various Western capital, with most family members residing long-term in the UK, US, or Europe.
The substantial profits they earn in their own country continue to flow to expensive lands, properties, cash, and equities in the colonial powers.
Look at the dilapidated towns, decaying infrastructure, sprawling slums, and numb, despairing people of that country; financial freedom is truly no longer believed in.
Thus, as long as capital can freely flow, GDP is merely an illusion with no real significance.
Because for any relatively weaker economy, economic profits will only flow out to the colonial powers, often leaving the people numb, desperate, and divided by myriad religious factions, rather than leaving behind well-governed states.
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