The concept of Gross Domestic Product (GDP) has long been a focal point for assessing the economic divide between the United States and China. Recently, the U.S. reported a GDP growth rate of 2.8% for the third quarter, a decrease from the second quarter but still indicative of robust economic health as the year draws to a close. Despite various external prognostications of economic downturn, the vitality of the American economy appears undeniable, suggesting that the gap with China may indeed widen further.

This raises a compelling question: what does America's growth amidst adversity really signify? Is China on the verge of being left behind?

What fuels U.S. economic expansion?

While there are persistent fears about a recession, the robust personal consumption levels in the United States continue to propel its economy forward. The trajectory of GDP resembles the upward trend seen in stock market indices, prompting an examination of the underlying factors driving this economic performance.

To begin with, a significant contributor to U.S. economic growth is its military-industrial complex. Historically, the U.S.'s ascent to its current status is intertwined with its involvement in the two World Wars as a supplier of arms.

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During these global conflicts, the U.S. proved adept at profiting from war by selling weapons to struggling nations, often at exorbitant prices; countries embroiled in warfare were left with little option but to acquiesce to these costs, with survival being paramount.

Russian President Vladimir Putin once harbored aspirations for his country to integrate with the West, a notion even former President Donald Trump seemed to grasp. However, Biden's administration complicated these relations, ultimately leading to Putin's decisive military actions in Ukraine.

In this context, it is evident that the United States has emerged as a principal benefactor from the ongoing conflict, effectively capitalizing on the situation.

By framing its actions as assistance, the U.S. has covertly engaged in the arms trade, transforming aid funds into substantial profits for the defense industry while encumbering Ukraine with formidable debts.

Moreover, the U.S. has taken aggressive steps, including severing Russia's oil pipeline to Europe, with some reports suggesting outright sabotage.

This strategic move has afforded the U.S. a dominating position in the European energy market. European consumers now face inflated costs for American oil and natural gas, paying several times more than before.

Not only has this benefitted the U.S. energy sector significantly, easing employment pressures, but it has also contributed to an upward surge in GDP.

It's essential to note that GDP serves as a point of national pride for the U.S. A notable decline could have severe repercussions for the government, especially given the current stock market euphoria.

Thus, it begs the question: how reliable is the authenticity of U.S. economic data?

Additionally, fluctuations in currency exchange rates can have significant impacts.

Is economic growth merely an illusion?

While America's economic image may seem resilient, for most American households, this growth could exist only in theory. The real engines driving this surge are the increasing wealth of the super-rich and their extravagant spending, alongside multinational corporations enjoying handsome profits.

This so-called growth is neither comprehensive nor robust, being heavily reliant on government largesse and borrowing.

American consumers find themselves spending exorbitantly on essential goods such as food and medicine, leaving scant resources for leisure activities like travel or dining out.

This disparity in disposable income has turned even modest luxuries into privileges reserved for the wealthy.

In essence, the United States now resembles a beautifully crafted economic bubble: superficially splendid, yet structurally fragile.

Examining corporate dynamics reveals that the top ten companies represent an unprecedented 36% of the entire stock market's total value, the highest ratio recorded since 1980.

Notably, the most valuable stocks in the U.S. are currently priced at a staggering 750 times that of the lowest quartile, a sharp increase from 200 times just a decade ago—a divergence unseen since the early 1930s.

As large corporations grow ever more dominant, countless smaller businesses spiral into uncertainty, grappling with unprecedented levels of trepidation regarding their futures and the confidence to grow.

In typical economic booms, the capital flows largely through private enterprises and borrowing.

Conversely, in downturns, the government typically takes on additional debt to alleviate economic strain.

However, this time has seen an unusual trend, with the U.S. government actively increasing its debt load, leading to a doubling of the budget deficit over the past decade, exceeding 6% of GDP, and the figure is expected to rise in the coming years.

Significantly, public debt is on the cusp of exponential growth.

In just ten years, U.S. public debt has surged by an astounding $17 trillion, a sum that surpasses all public debt accumulated in the previous 240 years combined.

Thus, rather than defining a nation’s strength by GDP figures, it would be more prudent to focus on addressing domestic issues. In contrast to the United States' robust internal demand, China's domestic consumption appears lacking. Finding ways to empower Chinese citizens to spend freely may be a more pressing concern.