Why was 2016 a turning point? Just take a look at the PPP GDP: at this time, the United States could no longer ignore China.

A portion of the ordinary GDP is overestimated, especially the service sector. This is because service industry income is determined by wages, which in turn depend on supply and demand, and may not necessarily reflect the volume of transactions.

Those who work for global companies have a deep understanding of this. For example, you may produce the same or even higher output as your colleagues in the United States and Europe, but receive much lower wages.

Of course, PPP GDP also has its flaws. The wealth generated by ordinary GDP is based on the same purchasing power globally.

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