If you read all my posts you will find that I am not such a big US hater, but yes they have got many things wrong.

First of all I find the way of calculating GDP is so bad (all over the world including India) that it sucks. For example if there is a big plane crash and a company (therefore a country) gets an insurance claim, that becomes cash inflow. Similarly all negative costs – hospitalisation, purchase of medicines, etc. all of this add up to your GDP.

In the US, it is worse. Gambling, prostitution, selling ammunition, – all this adds up to the GDP, adds to the profits, and increases the ‘per capita income’ of the country! Similarly the average American is supposed to be happier than the average German – because the ‘per capita’ income is higher. However when you talk quality – you talk of German quality or Swiss precision, not BIG quality or BIG precision. US is known for big – size of everything, not the best.

Here is an article on the quality of American life vs. German life…an article comparing the two…

http://www.salon.com/books/feature/2010/08/25/german_usa_working_life_ext2010/index.html

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  1. The article made for a nice read.

    I have this question in mind though, with no answers.Hope you have one!

    Why on earth is govt’s fiscal deficit quoted as a percentage of countries GDP ?

    It makes no sense to me. Logically speaking Govt has only a percentage of what ‘we the people earn’ in forms of tax and other things as it’s earnings. Then while spending that earning, why should it quote it’s deficit in terms of the what the country has earned. Shouldn’t it quote it as a percentage of it’s own earning ??

    To me quoting countries deficit against GDP sounds like ‘an employee’ quoting his personal fiscal deficit as a percentage of his employer’s total income!! crudely put…

    Hope there is a sensible answer to this madness. Of course if there was one, then countries like Greece would not be in dreams quoting such low %tage figures and waking up to shock one fine morning!

    Regards
    Raja

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