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Interesting factoid, List of countries by GDP sector composition

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April 21, 2009 – Comments (11)

The US is number 8th in the world 78.6% in terms of the size of the services w.r.t to the GDP.

 

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_composition


The closest major country to the US is France with 77.2%.

However in France the agricultural sector 2.2% is much bigger  than the US 0.9%.

 

These are scary numbers, showing the reliance of the US's economy  in exporting the dollar to the rest of the world in order to keep this level of consumption.

 

The current proposals to fight the recession, do not target this issue specifically.

I think that we are in for a rude-awakening, because we are prohibiting the economy from restructuring.

 

 

 

 

11 Comments – Post Your Own

#1) On April 21, 2009 at 5:54 AM, IIcx (< 20) wrote:

Maybe it's just me but the chart looks like it indicates that 2.2% of the GDP in France is agricultural. That doesn't mean that the agricultural sector in France is bigger then the US. Most of Europe would fit in Texas kaskoosek.

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#2) On April 21, 2009 at 5:59 AM, kaskoosek (55.71) wrote:

IIcx

Size of the US relative to France does not matter, since these numbers are in percentage terms.

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#3) On April 21, 2009 at 9:53 AM, drummnutt (< 20) wrote:

llcx;

Most of europe would fit in to texas?? Bull Sh!t. Europe is BIGGER than USA.

Also, (FYI) If Texas was a state in Australia, it would be the 3rd SMALLEST!

How about I buy you an atlas for xmas??

ALSO, USA only just scrapes in to the top 20 countries for GDP per capita! There are 16 countries that earn more per head of population than USA.

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#4) On April 21, 2009 at 10:21 AM, Schmacko (60.79) wrote:

So according to wikipedia, the source of all truth on the intra webs, the entire continent of europe is 103.6% the size of the United States with a population 2.4 times the size of the US's.  Texas on the other hand is marginally bigger than France with a population less than 40% of France's.

If you look at GDP with purchasing power parity calculated in the world bank, IMF, and CIA world factbook all list the top 5 countries in order as US, China, Japan, India, Germany.  The per capita rate (PPP) has the US somewhere from 4th to 8th.

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#5) On April 21, 2009 at 10:28 AM, drummnutt (< 20) wrote:

Sorry, IMF rates USA as 17th (GDP PPP). Infact, China is 104th (due to large population base). Australia is almost same size as USA ex Alaska, and has LESS people than texas.

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#6) On April 21, 2009 at 10:30 AM, drummnutt (< 20) wrote:

I meant GDP PPP PER CAPITA. Not total GDP.

GDP per capita is best measure because it takes population in to account!

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#7) On April 21, 2009 at 11:05 AM, kaskoosek (55.71) wrote:

Schmacko

This is basically CIA factbook.

 

Not saying by the way that the data is accurate.

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#8) On April 21, 2009 at 2:23 PM, Schmacko (60.79) wrote:

"Sorry, IMF rates USA as 17th (GDP PPP). Infact, China is 104th (due to large population base). "

If you go the IMF website and download their Oct2008 economic report (which I believe is the most current), slap it in an excel document.  Filter for "Gross domestic product based on purchasing-power-parity (PPP) per capita GDP" and then sort it from top to bottom in the 2008 column, The United States is 6th.  The US is 17th on the IMF site per capita when you don't take purchasing power parity into consideration.

As to Kaskoosek's original post, I'm thinking the US needs to restructure it's economy so that it's not 70% consumer driven.  However the world economy seems very much based around having the US as the major consumer of world goods (with a few other sites being secondary consumption centers to a lesser degree) and everyone else being export driven.  So using IMF 2008 numbers again here are the top 10 countries by total GDP (In US$):

USA, Japan, China, Germany, France, Great Britain, Italy, Russia, Spain, Brazil.

Japan, China, Germany, Russia, and Brazil are all export driven economies (Italy barely has a trade defecit).  Of those 5 the US is the #1 trading partner for 3.  If you expand to all 9 non US top GDP countries the US is in the top 5 export partners for 6 of them and the only one of those that doesn't export heavily to the US is Russia.   

So the US can stop trying to be consumer driven and diversify it's economy more, but I don't know if the rest of the world really wants that or will let that happen.  They need a market for their goods and right now that is us.  Obama asked the EU to try and stimulate their economies by increasing internal consumption and they basically told him to F off.  If the US isn't going to consume everyone's good then who is?  Apparently not the EU.  And if the US is going to be the world's bazaar where everyone ships their goods, doesn't it in a way make sense that the dollar will be the world's reserve currency and that the "export" of dollars will continue for the forseeable future?

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#9) On April 21, 2009 at 2:47 PM, kaskoosek (55.71) wrote:

Schmacko

Why give it away to the US. Sorry, but the economy does not work that way.

No one gets anything for free. Why don't they give these goods to some one in Somalia. 

There should always be balance. There is no reason for a country to keep exporting if it does not consume the fruits of labor. This is outright slavery. Countries will seek at increasing standard of living of its own citizens not some one else.

 

 

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#10) On April 21, 2009 at 3:31 PM, Schmacko (60.79) wrote:

Well nothing's being given to the united states it's being sold, which is why it's not going to places like somalia or zimbabwe... they have no money. 

So I assume your argument is that through inflation the US dollar is going to devalue to the point of worthlessness.  The US dollar devaluing to some degree I think is probably a given, but to the point that no one wants it anymore?  That's harder to argue.  But say that is the case.  Say the dollar becomes worthless overnight.  You suddenly have exporting countries manufacturing goods and no one to buy those goods.  They basically either have said they don't plan on increasing their own consumption or on the flipside just can't increase internal consumption regardless of what the government wants.  So the dollar becomes worthless and no one wants to export to the US anymore... where do those goods go?  The EU can pick up some slack, but not all of it.  You'd be looking at a lot of big spikes in unemployment across the globe.  Obviously large amounts of unemployment is not going to increase the standards of living of anyone like you say countries are going to seek to do.

Also do you think China is going to let their currency appreciate to a large degree vs ours or do you think they will keep it artificially depressed as the dollar devalues?  19% (according to world factbook numbers) of china's exports come to the US.  If the yuan appreciates vs. the dollar one would expect the trade imbalance to ease, but I don't think the chinese government wants that to happen.  China is one of those countries that doesn't really have the capability to drastically increase internal consumption yet.  It will go up over time, but slowly. 

A lot of developing countries have people who save more, but a lot of that saving is because there really isn't the social systems in place to deal with things like retirement and elderly health care so the citizens of those countries have to provide for themselves more.  If the US declines susbstantionally as a destination for the worlds goods,  there's no one really to replace it, and countries can't greatly increase internal consumption, where do all that countries manufactured goods go?  Most likely they don't go... as in they don't get sold.  This causes unemployment spikes, and in developing countries that usually leads to a good deal of social unrest.   China doesn't want social unrest and neither do other emerging economies.

The world economy is very intertwined, and right now very dependent on the united states being an end destination for all of it's various goods.  I don't really see any global paradigm's shifting and other countries stepping up to say they want to be the all consuming black hole of the world's goods.

 

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#11) On April 21, 2009 at 5:20 PM, kaskoosek (55.71) wrote:

"A lot of developing countries have people who save more, but a lot of that saving is because there really isn't the social systems in place to deal with things like retirement and elderly health care so the citizens of those countries have to provide for themselves more."

 

This is a point I agree with. That is why china is going to offer universal health care.

But running continuos current account deficits is inherently unstable. Even if china buys these dollar, the citizens are going to suffer the wrath of inflation.I think that this time around, there is going to be some attempt at decoupling in order to enjoy a higher standard of living at least for the case of china.

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