According to the latest data on global GDP released by the World Bank this February, the U.S. still is the world’s biggest economy – by far. As shown by this Voronoi diagram, the United States (24.3%) generates almost a quarter of global GDP and is almost 10 percentage points ahead of China (14.8%), in second place, and more than 18 percentage points ahead of Japan (4.5%) on three.
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We are trying to clear up the contradictory picture created by the abundance of numbers published for better understanding the USA consumption dynamics.
Prior to analyzing the dynamics we must note that the cost of living in the US is growing, the Americans are spending more and more on necessaries. If you look at the share of food and electricity spendings, it was 17% of total spendings of the Americans in 2000 while it exceeded 22% at the end of 2011. Therefore, the growth of income is lagging behind the growth of food and das prices. This is especially true regarding the past year when real income of the population decreased (which will be elaborated below) while gas and food prices were high. Read more »
When times are tough, we start to question ourselves: why? Why do we deserve it? How long will it last? Will this be repeated in the future?
The last crisis was not an exception. It has ended somewhere but not elsewhere. Yet the media keeps talking about it. Read more »