Economic powers in 19th century

15 Apr, 2018

Sardar Aminullah Khan in his latest article for Business Recorder has articulated his argument by stating that "[T]he Unites States has been the global economic leader since early 19th Century but global economic epicenter has shifted to Asia led by China. Today China is the largest economy on purchasing power parity but on current prices (2018 estimates) the US has a GDP of 20,119(T), China 13,119(T), Japan 5063(T), Germany 3934(T) and France 2765(T) and with the current rate of growth, economist think, China will surpass the US in 2022."
The writer is right insofar as his facts about China, Japan, Germany and France are concerned. He seems to have erred in identifying the historical economic place of the US by stating that it has been the global power since early 19th century. Around 1870, Germany became the new leader in European industry. Germany far exceeded the production of any other European nation in chemicals and electrical equipment; it was competing with the US in production of chemicals and electrical goods even in years prior to the breakout of the World War I. In the latter half of the 19th century, Great Britain tried to retake its position as industrial leader, but Germany would not give up its newly acquired title so easily but the former was still the dominating commercial power in the world. The United States also enjoyed success during the Second Industrial Revolution but the 19th century clearly belonged to Europe.

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