For the first time since Ulysses S. Grant was president (1877) the United States is not ranked as the largest economy in the world. China now takes the number one spot, putting the United States in an unsavory second place.
These rankings are based on the International Monetary Fund’s yearly report on the purchasing power parity (PPP) of each country. PPP measures the actual output of a nation, regardless of fluctuating inflation rates, and is widely used by economists around the world.
And according to the IMF’s report — this year, China will produce $17.6 trillion — compared with the United States’ $17.4 trillion.
Economic columnist Brett Arends calls this shake up “a geopolitical earthquake.” And says while it will not change anything tomorrow or next week, “it will change almost everything in the longer term.”
For 137 years, the United States has dominated the global economy — and as recently as 2000, we produced nearly three times as China. But in the last few years, our production rate and global output has not maintained the growth of our competitors.
So not only are Americans struggling with costs at home, but our country is falling globally as well. It is time for economic reform across the board. Success abroad is dependent on success at home — more jobs and better pay will translate to greater production and a robust national economy.
As America’s New Congress looks towards the next year, these reforms are at the top of our list. Americans have asked for economic change — and that’s exactly what we are going to deliver.
Second place is not where we belong.