Average American family of 4 now makes $252,000 a year according to latest GDP per capita numbers. Why USA still complains about China ?

B

blam

SILVER ELITE
I was just looking up the average GDP per capita today and for the year 2020, the GDP per capita is about $63000. (Source: https://statisticstimes.com/economy/country/us-gdp-per-capita.php)

This means the average family of 4 now makes about $252,000 ($63000 X 4). I am referring to average American family of 4 from an average state in the USA.

This seems like a lot of money about $21,000 a month in salary for an average family of 4. Surely people in more expensive states like California or New York are making much more.

Why then do people still think "America needs to be made great again" when they are already making so much? Am I missing something?
 
blam said:
Am I missing something?
Click to expand...

Yup... missing everything...all of your posts.

Shame you don’t understand the difference between GDP and income. May want to start there and pay for your account on this site so that you can delete all of your posts that make you look like an idiot.
 
N00B said:
Yup... missing everything...all of your posts.

Shame you don’t understand the difference between GDP and income. May want to start there and pay for your account on this site so that you can delete all of your posts that make you look like an idiot.
Click to expand...


actually gdp per capita and income should be pretty close. Unless there is a problem with income distribution.

gdp per capita is roughly the revenue generated per person. That should be roughly the same as that persons income on average unless of course the boss takes all of it and leaves little for the worker.
 
blam said:
actually gdp per capita and income should be pretty close. Unless there is a problem with income distribution.

gdp per capita is roughly the revenue generated per person. That should be roughly the same as that persons income on average unless of course the boss takes all of it and leaves little for the worker.
Click to expand...

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blam said:
actually gdp per capita and income should be pretty close. Unless there is a problem with income distribution.

gdp per capita is roughly the revenue generated per person. That should be roughly the same as that persons income on average unless of course the boss takes all of it and leaves little for the worker.
Click to expand...

Not even close. Start with the definition... I’ll wait for your premium subscription to delete your thread.
 
blam said:
gdp per capita is roughly the revenue generated per person. That should be roughly the same as that persons income on average unless of course the boss takes all of it and leaves little for the worker.
Click to expand...

Definitions, such tricky things. So finite, so clear, so.. not what you said.
 
blam said:
actually gdp per capita and income should be pretty close. Unless there is a problem with income distribution.
Click to expand...

OK, definition of GDP aside...lol... as you still don’t know what that means, Are you suggesting that there is a better distribution of wealth model based on GDP? Oh wait, that would also still require understanding of GDP...well, try your best anyway.
 
$68,703
Median household income was $68,703 in 2019, an increase of 6.8 percent from the 2018 median of $64,324 (Figure 1 and Table A-1). The 2019 real median incomes of family households and nonfamily households increased 7.3 percent and 6.2 percent from their respective 2018 estimates (Figure 1 and Table A-1).Sep 15, 2020
https://www.census.gov › demo
Income and Poverty in the United States: 2019 - Census Bureau

Just saying . . .
 
Consider a simplified model of a 3 person only economy for simplicity of explanation. 1 boss, 2 workers. The workers each produces $10 worth of gadgets which they give to the boss who exports them overseas.

How much is the GDP in this fictitious 3 person economy?
Ans: 2 workers made $10 worth of gadget, so it is $10 + $10 = $20. (GDP)

How much is the GDP per capita?
GDP per capita = GDP/population = $20/(1 boss + 2 workers) = $6.67 (GDP per capita).

Suppose that the boss took the proceeds of the sale and divides them equally amongst themselves.

How much does each person gets?
Ans: $20/3 = $6.67 (Average Income per Person).

What is the median income?
Ans: $6.67.

WOW! GDP per capita = Median Income per Person.



Now suppose the boss decides to keep most of the proceeds to himself and only pays his worker $1. So the boss keeps $18, pays each worker $1 from the $20 proceed (a case where income inequality is extreme).

How much does each person gets?
Answer; Boss gets $18, worker 1 gets $1, worker 2 gets $1.

What is the median income?
Answer: We rank the income and pick the middle, the median income is now $1.

Wow! GDP per capita is drastically different from median income per person!




That GDP number does not lie. The United States is doing VERY WELL economically. It is just a question whether you are getting a piece of the cake or not.
 
blam said:
Consider a simplified model of a 3 person only economy for simplicity of explanation. 1 boss, 2 workers. The workers each produces $10 worth of gadgets which they give to the boss who exports them overseas.

How much is the GDP in this fictitious 3 person economy?
Ans: 2 workers made $10 worth of gadget, so it is $10 + $10 = $20. (GDP)

How much is the GDP per capita?
GDP per capita = GDP/population = $20/(1 boss + 2 workers) = $6.67 (GDP per capita).

Suppose that the boss took the proceeds of the sale and divides them equally amongst themselves.

How much does each person gets?
Ans: $20/3 = $6.67 (Average Income per Person).

What is the median income?
Ans: $6.67.

WOW! GDP per capita = Median Income per Person.



Now suppose the boss decides to keep most of the proceeds to himself and only pays his worker $1. So the boss keeps $18, pays each worker $1 from the $20 proceed (a case where income inequality is extreme).

How much does each person gets?
Answer; Boss gets $18, worker 1 gets $1, worker 2 gets $1.

What is the median income?
Answer: We rank the income and pick the middle, the median income is now $1.

Wow! GDP per capita is drastically different from median income per person!




That GDP number does not lie. The United States is doing VERY WELL economically. It is just a question whether you are getting a piece of the cake or not.
Click to expand...

Again, Not even close.

Please take espola’s advice and learn what you’re talking about before making continuous false statements as a result of your uneducated position. Also take my advice and stop making yourself look bad by continuing to discuss topics you don’t understand.

I’m not going to waste my time educating you, if you can’t understand the definition of GDP on your own. GDP includes government spending (anyone recall trillions of that recently) productivity of investments (the stock market is a small part of those returns) amongst other factors.

Care to discuss the impact of currency manipulation in China and their government spending as relates to their GDP? Wait, you’d still need to understand GDP first.
 
N00B said:
GDP includes government spending (anyone recall trillions of that recently) productivity of investments (the stock market is a small part of those returns) amongst other factors.
Click to expand...

Yes! Income from investments is also included in the computation. There are 3 ways to compute the GDP. Either way you should get the same answer.

I didnt exclude investment when when I said the median income of a family of 4, Investments is of course income.

That GDP per capita number is an actual benefit that flowed into the USA, no denying that unless you are a conspiracy theorist. Now, if most people's income is close to that, that means the benefits are distributed equally.

If you disagree with me that the gdp per capita number is close to the average income per person, then you are concluding that income distribution is highly unequal. Thank you. Exactly my point. Somewhere out there, despite the benefits proven by the GDP numbers, a big part of it is not showing up as your income. Example: investments. Somewhere out there is a corporation that grew a lot in the past 20 years bought a new piece of building as investment. It bought a new real estate. You on the other hand didnt buy a second/third house. that's how that GDP number didn't reflect in your income and why you disagree.

Trade with China is only harmful to the USA on aggregate if it causes the GDP to deteriorate. Data does not show that. It is only harmful to the workers who were left out, or workers whose wages are suppressed due to more options to outsource their jobs. Wall street, owners who outsourced their manufacturing to China, they made a lot of money doing trade with China, as the GDP numbers shows and proves, so much that a family of 4 now contributes $252,000 to the economy on average.
 
N00B said:
OK, definition of GDP aside...lol... as you still don’t know what that means, Are you suggesting that there is a better distribution of wealth model based on GDP? Oh wait, that would also still require understanding of GDP...well, try your best anyway.
Click to expand...
He has been taking socialism classes.

The problem with that is economically if you spotted them the C and the T, they still can't spell CAT.
 
blam said:
Yes! Income from investments is also included in the computation. There are 3 ways to compute the GDP. Either way you should get the same answer.

I didnt exclude investment when when I said the median income of a family of 4, Investments is of course income.

That GDP per capita number is an actual benefit that flowed into the USA, no denying that unless you are a conspiracy theorist. Now, if most people's income is close to that, that means the benefits are distributed equally.

If you disagree with me that the gdp per capita number is close to the average income per person, then you are concluding that income distribution is highly unequal. Thank you. Exactly my point. Somewhere out there, despite the benefits proven by the GDP numbers, a big part of it is not showing up as your income. Example: investments. Somewhere out there is a corporation that grew a lot in the past 20 years bought a new piece of building as investment. It bought a new real estate. You on the other hand didnt buy a second/third house. that's how that GDP number didn't reflect in your income and why you disagree.

Trade with China is only harmful to the USA on aggregate if it causes the GDP to deteriorate. Data does not show that. It is only harmful to the workers who were left out, or workers whose wages are suppressed due to more options to outsource their jobs. Wall street, owners who outsourced their manufacturing to China, they made a lot of money doing trade with China, as the GDP numbers shows and proves, so much that a family of 4 now contributes $252,000 to the economy on average.
Click to expand...

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Explore economics courses and more. Develop the skills to advance your career with edX.
www.edx.org www.edx.org
 
blam said:
Yes! Income from investments is also included in the computation. There are 3 ways to compute the GDP. Either way you should get the same answer.

I didnt exclude investment when when I said the median income of a family of 4, Investments is of course income.

That GDP per capita number is an actual benefit that flowed into the USA, no denying that unless you are a conspiracy theorist. Now, if most people's income is close to that, that means the benefits are distributed equally.

If you disagree with me that the gdp per capita number is close to the average income per person, then you are concluding that income distribution is highly unequal. Thank you. Exactly my point. Somewhere out there, despite the benefits proven by the GDP numbers, a big part of it is not showing up as your income. Example: investments. Somewhere out there is a corporation that grew a lot in the past 20 years bought a new piece of building as investment. It bought a new real estate. You on the other hand didnt buy a second/third house. that's how that GDP number didn't reflect in your income and why you disagree.

Trade with China is only harmful to the USA on aggregate if it causes the GDP to deteriorate. Data does not show that. It is only harmful to the workers who were left out, or workers whose wages are suppressed due to more options to outsource their jobs. Wall street, owners who outsourced their manufacturing to China, they made a lot of money doing trade with China, as the GDP numbers shows and proves, so much that a family of 4 now contributes $252,000 to the economy on average.
Click to expand...

And you’re wrong again, because you don’t understand what you are talking about... or worse, you think you comprehend.

So you are either intentionally obtuse due to your ‘agenda’ or incapable of using the internet you are currently on to educate yourself.
 
N00B said:
And you’re wrong again, because you don’t understand what you are talking about... or worse, you think you comprehend.
Click to expand...


Denial, denial, denial.

Btw, you should also look the GDP of the USA in the past 20 years. If trade with China had been harmful, where is the dent in GDP of the USA? From the looks of it, the US economy has been going really strong for the past 20 years. Only a small blip due to the 2007 financial crisis. Ignoring that, it looks almost like it is exponentially growing faster and faster. The curve is curving upwards, not a linear growth but a slight exponential growth. America is Great already!


1619218843403.png
 
blam said:
Denial, denial, denial.

Btw, you should also look the GDP of the USA in the past 20 years. If trade with China had been harmful, where is the dent in GDP of the USA?
Click to expand...

Sad !

Why do you keep making a fool of yourself?!

None of your ‘conclusions’ are remotely accurate as you don’t have a clue of what GDP is, what it is a measure of, or what impacts it.

I am certainly a denier of your ability to hold a cogent discussion on this topic.
 
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