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Is GDP adjusted for PPP a good or a bad comparison of the economies of two different countries?

China’s adjusted GDP

Math is a highly inaccurate proxy of the state of economics as is the sum of goals scored in soccer an unreliable proxy of the quality of the game played.

Two countries with the same GDP will have different economic performance, just as two games of soccer with the same score will have different gameplay. Economics is not about numbers, economics is about the enablement of the gameplay of freedom and how that gameplay rejuvenates opportunity to yield a reliable proxy of future performance.

It doesn’t quite matter what type of math you use. So to answer your question, GDP is a bad proxy of economic performance from which no pertinent conclusions should be drawn.

About Georges van Hoegaerden

After my ideas had raised $14M and returned over $100M to investors in Silicon Valley I could not help but detect a systemic flaw in the way we detect, build, fund and support systems of innovation. On an entrepreneurial quest to root-cause I evolved my focus from the economics of innovation to the innovation of economics, and ended up completely rewriting the playbook of economics that must guide us all. I named my invention Renewable Economics™.

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