Row 67491

Row ID: 67491 | Dataset Entry | Axioma AXP Content Repository

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> First, if nominal does not grow but ppp does then it pretty much means that economy had to depreciate wages in order to stay competetive on global terms.

That's not true. It means the economy got more efficient. Whether prices stayed the same and wages rose, or wages stayed the same and prices fell, it's the same for living standards and for production. Inflation is first and foremost a monetary phenomenon, economic growth is measured in real terms.

Yes, nominal definitely has its value, but for living standards PPP is better. And PPP is actually the one that exactly tracks GDP growth, whereas as nominal growth heavily tracks currency movements. Christine Legarde can make an announcement about doubling interest rates tomorrow and "grow" the European economy by trillions in a single day. Do you think there would be any actual expansion of goods services behind that?

Again, not that nominal doesn't matter or is even worse, but ppp is better in the context of living standards or growth/change. Nominal works for growth if you look at very long periods so that you can discount currency movements.

>there is still one big problem. Resources are traded in nominal dollars that everyone needs to buy regardless of his local PPP which creaes further problems.

You don't know what PPP is. PPP includes imported resources. It's the average for all goods and services, both imported and locally produced.

>EU GDP is 35k USD nominal.

It's not. Show your source.

Show your source for Canada being 1.7 times richer and Aus 1.9.

Go on.

>Out of big 4 that represent over 50% of EU only Germany and to lesser extend France somewhat kept up but recently even Germany showed same exact problems the other 3 already showed 10 years ago.

I just showed how a bigger part of Western Europe, including Germany grew. Your obsession with focusing on these 4 countries makes no sense, other than wanting to list just 4.

>I do not understand your point here? What have two unrelated countries that are nothing like EU or any other western country to do with this comment chain?

What was your point about Canada or New Zealand? EU is closer to them in nominal than Japan or Korea are to the EU. Does that mean that Japan is poor and should be growing much faster? No, because nominal is not that precise at showing development.

>his is who we compare ourselves with? Corrupt failed states, dictatorships and war ridden countries?

Do you remember what you said? You said Europe is supposed to grow faster because it's poorer than Australia. Well the EU is growing faster than many much poorer countries so both poking holes in your view of how much countries are supposed to grow and showing that the EU is having a good run compared to many countries.

>US does not have crazy deficits. Many European countries have ran much bigger deficits (for instance Italy) yet there was no growth to back it up.

You are just brazenly lying for multiple times in this discussion.

[The US had a budget deficit of 14.7% in 2020](https://tradingeconomics.com/united-states/government-budget) and 12% the next year. That's extremely high. No one in Europe, let alone many, has had a bigger deficit. Stop making stuff up.

FieldValue
text > First, if nominal does not grow but ppp does then it pretty much means that economy had to depreciate wages in order to stay competetive on global terms. That's not true. It means the economy got more efficient. Whether prices stayed the same and wages rose, or wages stayed the same and prices fell, it's the same for living standards and for production. Inflation is first and foremost a monetary phenomenon, economic growth is measured in real terms. Yes, nominal definitely has its valu…
label r/economics
dataType comment
communityName r/Economics
datetime 2024-05-23
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Raw Record

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  "text": "> First, if nominal does not grow but ppp does then it pretty much means that economy had to depreciate wages in order to stay competetive on global terms. \n\nThat's not true. It means the economy got more efficient.  Whether prices stayed the same and wages rose, or wages stayed the same and prices fell, it's the same  for living standards and for production.   Inflation is first and foremost a monetary phenomenon,  economic growth is measured in real terms.\n\nYes, nominal definitely has its value, but for living standards PPP is better. And PPP is actually the one that exactly tracks GDP growth, whereas as nominal growth heavily tracks currency movements. Christine Legarde can make an announcement about doubling interest rates tomorrow and \"grow\" the European economy by trillions in a single day. Do you think there would be any actual expansion of goods services behind that? \n\nAgain, not that nominal  doesn't matter or is even worse, but ppp is better in the context of living standards or growth/change. Nominal works for growth if you look at very long periods so that you can discount  currency movements.  \n\n\n>there is still one big problem. Resources are traded in nominal dollars that everyone needs to buy regardless of his local PPP which creaes further problems.\n\nYou don't know what PPP is. PPP includes  imported resources. It's the average for  all goods and services, both imported and locally produced.\n\n\n\n>EU GDP is 35k USD nominal.\n\nIt's not. Show your source. \n\nShow your source for Canada being 1.7 times richer and Aus 1.9. \n\nGo on.\n\n>Out of big 4 that represent over 50% of EU only Germany and to lesser extend France somewhat kept up but recently even Germany showed same exact problems the other 3 already showed 10 years ago.\n\n\n\nI just showed how a bigger part of Western Europe, including Germany grew. Your obsession with focusing on these 4 countries makes no sense, other than wanting to list just 4.\n\n\n\n>I do not understand your point here? What have two unrelated countries that are nothing like EU or any other western country to do with this comment chain?\n\nWhat was your point about Canada or New Zealand? EU is closer to them in nominal than Japan or Korea are to the EU. Does that mean that Japan is poor and should be growing much faster? No, because nominal is not that precise at showing development.\n\n\n>his is who we compare ourselves with? Corrupt failed states, dictatorships and war ridden countries?\n\nDo you  remember what you said? You said Europe is supposed to grow faster because   it's poorer than Australia. Well the EU is growing faster than many much poorer countries so both poking holes in your view of how much countries are supposed to grow and showing that the EU is having a good run compared to many countries.\n\n\n\n\n>US does not have crazy deficits. Many European countries have ran much bigger deficits (for instance Italy) yet there was no growth to back it up.\n\nYou are just brazenly lying for multiple times in this discussion.\n\n[The US had a budget deficit of 14.7% in 2020](https://tradingeconomics.com/united-states/government-budget) and 12% the next year. That's extremely high. No one in Europe, let alone many, has had  a bigger deficit. Stop making stuff up.",
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  "datetime": "2024-05-23",
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