Sunday, December 02, 2007

America's Ridiculously Large Economy III

Following previous posts (here and here) on America's ridiculously large economy, here is how the growth in U.S. nominal GDP would translate, in terms of how the typical increases in national output compare to the economic output of various U.S. states:

4% growth in current-dollar GDP ($560 billion of additional output) would be equivalent to adding two new states to the U.S. the size of Washington ($293.5b) and Maryland ($258b).

5% growth in GDP (average growth since 1997) would be equivalent to adding a new state the size of Florida to the U.S. economy.

6% growth in GDP (average growth from 2004-2006) would be equivalent to adding two new states the size of Georgia ($380b) and Ohio ($461b).

7% growth (achieved in some individual quarters like the fourth quarter of 2006), would add almost $1 trillion (corrected) of output to the U.S. economy, equivalent to adding a new state the size of New York to the U.S. economy.

Bottom Line: In an average year, the U.S. economy grows by an amount equivalent to adding the entire economic output of a state like Florida ($713 billion) to the U.S. economy, or a country like Australia ($755 billion). In a great year, the U.S. economy grows by an amount equivalent to adding the economy of another New York state to the U.S. economy, or adding the economy of an entire country like Russia to the U.S economy.


4 Comments:

At 12/03/2007 12:39 PM, Anonymous Anonymous said...

Mark, for the 7% analogy, I believe you meant "$1 trillion," not "$1 billion. NIce posts on this subject!

skh.pcola

 
At 12/03/2007 1:15 PM, Blogger Mark J. Perry said...

Sorry, and thanks. I have corrected it.

 
At 12/03/2007 9:37 PM, Blogger Snake Oil Baron said...

That tends to happen when you do the right thing economically (I would include good political policies like personal liberty and property rights as good economic policy).

America's wealth and power is well deserved. It is also a fortunate thing for the planet that a nation like America exists with such influence at this time. Africa is starting to expand economically in part due to trade liberalization, economic reform and a general movement towards democracy and accountability.

Up north we have begun to clue in to why the US is so successful and as a result of adopting more economically modern policies we have seen our debt lowered and our unemployment rate reduced significantly.

 
At 12/03/2007 9:39 PM, Blogger Snake Oil Baron said...

Though Canada still has a way to go on that account.

 

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