Wednesday, February 14, 2007

America's shrinking slice of the pie

The 2006 numbers are in at the CIA and they show that America's share of the global economy has fallen below 20% for the first time.

I dug up the numbers since 1999(in billions):

Year........U.S. GDP............World Economy...........U.S. share
1999.........$9,255....................$ 40,700...................22.74%
2000........$9,963....................$43,600....................22.85%
2001......$10,082....................$47,000....................21.45%
2002......$10,400...................$49,000....................21.22%
2003......$10,980...................$51,410.....................21.36%
2004......$11,750....................$55,500....................21.17%
2005......$12,360...................$60,710.....................20.36%
2006......$12,980...................$65,000....................19.97%

I think many people still have the idea that America accounts for a quarter of the world's economy. China and India's high rates of economic growth seem to be taking their toll on that figure. It's been quite a while since America's economy grew at the world's average economic growth rate.

What policy changes this will lead to is hard to see, but I think America is already starting to question whether it can afford to be the world's policeman for much longer.

6 Comments:

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11:50 PM  
Blogger subadei said...

Lol. Spam, gotta love it, eh?

At any rate, I'm not sure this down turn is a negative thing.

5:12 AM  
Blogger alphie said...

I agree, Sube.

The EU economy is roughly the same size as America's and its growing at an even slower rate.

So, America plus Europe now account for less than 40% of the world's economy.

Where is the other 60% of the world's economy?

China and India are certainly getting plent of new investments from "The West," but politically and culturally, they don't seem to be making themselves known yet.

Maybe there is a delay between economic and political power?

1:06 PM  
Anonymous Anonymous said...

This data is misinterpreted, culminating with the assertion that America is somehow in decline because the rest of the world is getting richer. Go look at that data again, and notice how the values for the US are increasing every year. We can afford to follow the Kennedy Doctrine, i.e. be the world's policeman, just fine. As for the rest of the world, the increase you see is due in large part to the spread of democracy and capitalism, and in turn due in large part to our victory in the Cold War. Good for them. The richer the rest of the world becomes, the less need we'll have to follow the Kennedy Doctrine in the first place.
"Shrinking slice of the pie", indeed. "Stupid-ass blogger" is more like it.

6:03 AM  
Blogger alphie said...

I didn't say Amerrica is in decline, anon.

I said our relative economic power is shrinking.

Different thing altogether.

3:37 PM  
Blogger subadei said...

The tactless "anonymous" is correct in that the US isn't losing ground in terms of domestic economic growth, rather other economies are rising to the global occasion.
Such a phenomena is a positive example of what is, IMO, a burdgeoning global economic collective and a subsequent framework that will lead to global stability. For all their piss tossing the anti-globalists fail to recognize the peacemaking of the globalglobal economy and it's roadblock effect in consideration of state warfare.

China is making themselves very well known politically as is illustrated in their currently warming relations with Japan and the recent diplomatic "breakthrough" with the Norks. Chris Hills' brilliance not withstanding it might well have been the Chinese leverage that brought the Norks to the recent "agreement" (not too confident about said agreement, but...)

As far as India is concerned, the resolution of Afghanistan and the subsequent stability (or contrary instability) of Pakistan is a huge hurdle they face.

The tactless "anonymous" errs in not realizing that the "Kennedy Doctrine" was an anti-communist agenda and a cold war strategy that didn't entail the globalized economies that we see today. It prescribed the prospect of military intervention in place of todays economic inclusion/exclusion that precludes armed conflict. I suspect GW Bush made the same attempt at national unity and international cohesion in announcing that (I'm paraphrasing) "you're either with us or against us."

The prospect of pre-emption or nation building is worlds away from a political adherence to 20th century anti-communism and the subsequent 3GW or nuclear build up of arms.

3:46 PM  

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