"In other words, the idea that rich countries grow more slowly has gone from fiction to fact." https://www.bloomberg.com/amp/view/articles/2018-10-18/why-the-developing-world-started-gaining-on-the-west … So I've always been kinda confused by this claim. IANAE but maybe someone who is can clarify? (Thread.)
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So this year the world's fastest growing economy was Ghana, growing at 8.3%. https://www.theatlas.com/charts/BJOKD67VG … Whereas the USA's growth was like 2%. But...
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Ghana's GDP per capita, saith Google, is about $1,600, whereas America's is almost $60K. So in absolute dollar value, rather than %s, America's GDP grew by $1200 per person and Ghana's by barely more than a tenth of that. Yes, purchasing power parity, but no way that's 10x.
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So how exactly is Ghana "catching up" to the US? Greater percentage growth still means it's being left in America's dust in terms of actual, you know, value, no? Or am I missing something?
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Replying to @rezendi
If this situation persists for 40 years, Ghana's absolute growth will overtake the US: http://m.wolframalpha.com/input/?i=1.083%5Ex*1600+%3D+1.02%5Ex*60000%2F4 … I'm guessing growth theory suggests that Ghana's growth will slow down as it gets richer, though, and there will be a Zeno's paradox thing where it never catches up
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Replying to @nikitab
Yeah, that's my impression too. And there seems to be a very meaningful distinction between "the developing world is catching up" and "if this goes on, in 40 years the developing world will finally begin to catch up."
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I hereby page the OP
@Noahpinion in case he's on Twitter and bored and wants to elucidate.1 reply 0 retweets 0 likes
Differences vs. ratios
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