China's economy continues to dominate in the polls, if not in reality

Maybe it's a mismatch between economic terminology and the way people think.

Which nation is the game-changer?

The book answer on "power" might not explain the changes.

Could be The Media has been beating us over the head with "China China China" for about the last 5 years or so...
Also i think its interesting/surprising that China is actually behind Germany in GDP, i doubt many non-economist/finance people would have ever guessed that.

I think the polls have it right. China is the most influential economy today, because it not only focuses on economic growth, but also more importantly, financial strength. There was a time when USA did that. But today, USA's GDP growth results in increasing financial weakness, because US is just spending borrowed monies, and not exercising fiscal responsibility to spend within its financial means.

The US Comptroller General, who should know the financial state of USA, once compared US to the fallen Roman Empire in his most recent address. Too much is made about GDP growth and size of GDP, as if that is a barometer for economic strength.

Warren Buffett summarized this problem in his article, “Squanderville and Thriftville”. It basically concludes that:

When you consistently spend more money than you make (deficit spending), you transfer your net worth to others.

When you consistently spend less money than you make (budget surplus), others transfer their net worth to you.

This financial truism applies to personal finance, as well as the financial health of any nation. USA is no exception. Our politicians really don't have the business acumen to understand that economic growth, by just spending more borrowed monies, weaken a country financially, as US accumulates more debts and unfunded liabilities. For a country's economic and financial health, it must grow its economy within its financial means, and not over consume just to maintain economic growth, at the expense of financial health. Despite having the largest economy by GDP, US is increasingly getting weaker financially with huge debts of over $9 trillion dollars, and unfunded liabilities estimated between $45-70 trillion dollars. USA is not spending within its means, and therefore, is transferring its net worth to others, as Buffett noted. That's what happens when you consistently deficit spend.

Therefore, the polls are correct. USA is becoming less and less important, as it increasingly becomes financially weaker. USA's GDP size may buttress American egos, but it does nothing to buttress its finances, as our Comptroller General warns.

Look, I'm willing to grant that there are other measures of economic power than GDP, and I think odograph's "game changer" point is a good one. And yes, the U.S. growth in GDP over the past five or six years was to a remarkable extent fueled by debt. But I still think China's high ranking in these polls is mostly a product of Americans' poor understanding of the world, possibly exacerbated by The Media's China obsession.

I think the author of this article is the one who don't understand, and doesn't give enough credit to most Americans who do understand that GDP growth and or GDP size, is not the same as financial strength. That's why the author should read Buffett's “Squanderville and Thriftville”, since Buffett summarizes this situation much more eloquently that I can.

The author asserts that US remains far and away the richest and most powerful nation on earth. While I agree US is the most powerful, militarily, it is not the richest financially. Please read the US Comptroller General's report to understand the current financial state of USA. USA was the largest creditor nation in the world. But today, it is now the largest debtor nation in the world, a financial reversal. Despite having the largest economy in terms of GDP, USA is nonetheless financially weak.

Central Bankers around the world, especially those in Asia and the Middle East, is really buttressing the US economy, and trying to stop it from imploding from the weight of all its debts and unfunded liabilities. With the sub-prime meltdown, and the ensuing credit squeeze, it was not surprising to see that US turned to other countries with savings, liquidity, reserves, and monies to bail out US, and more specifically, its ailing financial institutions. I hardly call that the richest financially. I define “rich” as the person, or the country that has the strongest financial statement. If the author disagrees with my definition, I invite the author to go to his bank, ask for a loan, and see for himself, whether his banker will ask for his financial statements, or his GDP.

I suppose the author may try to support his assertion by saying “richest” as in the largest GDP. But that only reinforce my point that the author is confusing GDP size, with financial strength, as it is not the same. USA essentially grew its GDP, by just spending more borrowed monies, accumulating more debts, and weakening it further financially.

Notwithstanding the poll results, most Americans understand that financial strength means economic influence. You can actually see this growing influence at the recent Davos Economic Forum. I give most Americans more credit than the author, to form their own conclusions from their own life experiences, as they don't need the media to tell them which country has growing economic influence and which countries have receding economic influence.

If our US government does not heed the warnings of our Comptroller General, I'm afraid his comparison of US to the fallen Roman Empire, will go from prophecy to prophecy fulfilled.

China you will not like what I have to say. China needs to double or Triple its minimum wage. Having people work for so little is wrong. Even if you are poor you should have some money left over to buy yourself something. It is not right having poor people work for nothing to supply products to the industrialized countries of the world. Maybe it will cost us more in the United States but it is the right thing to do.