Wednesday, July 25, 2012

With U.S. GDP of $15T, Many Large Metro Areas Have Larger Economies Than Entire Countries

From the WSJ:

Inside the $15 trillion machine that is U.S. economy are dozens of metropolitan economies, from New York to Honolulu, that are the real pistons and gears of U.S. growth and prosperity. So how do those individual economies stack up against the world?

Take the quiz below, and for answers see this chart.

1. New York has the highest Gross Metropolitan Product (GMP) of any U.S. metropolitan area — $1.287 trillion. That is bigger than the GDP of all but how many countries (not including the U.S.)?
a) 5
b) 8
c) 10
d) 12 

2. Houston’s GMP is larger than which of the following nations’ GDP?
a) South Africa
b) Venezuela
c) Finland
d) All of the above

3. The implications of Greece’s financial troubles appear woefully larger than its tiny economy. With a $300 billion GDP, what U.S. metro economy is that closest to?
a) Chicago
b) Philadelphia
c) Atlanta
d) Miami

4. Ireland’s GDP is smaller than which of the following U.S. cities’ GMPs?
a) Seattle
b) Minneapolis
c) Detroit
d) None of the above

11 Comments:

At 7/25/2012 8:49 AM, Blogger bix1951 said...

I notice Syria down at the bottom near Birmingham Alabama. Syria gets a lot of attention for its size! It's a shame that our press is so biased.

 
At 7/25/2012 9:13 AM, Blogger morganovich said...

bix-

if birmingham alabama had 21 million people, a huge stockpile of chemical weapons, and was engulfed by civil war, i suspect we'd be hearing quite a bit about it regardless of the size of its gdp.

 
At 7/25/2012 9:16 AM, Blogger VangelV said...

This comment has been removed by the author.

 
At 7/25/2012 9:16 AM, Blogger VangelV said...

It is true that American urban workers and companies are quite productive and have a high GDP compared to many countries. But it is also true that most of these cities are in big trouble because they are badly run and have liabilities that cannot be funded out of taxes. Given the infrastructure upgrades that will be required I wonder how long it is before we realize that for most of these cities the best times are in the rear view mirror and ahead of them lies a huge cliff.

Let me note here that a few decades ago Detroit would have been seen as one of the great successes in America.

 
At 7/25/2012 10:25 AM, Blogger juandos said...

Actually what would be more interesting is to see the US cities ranked by debt comparison to these countries...

BTW its interesting that Professor Mark uses the word, 'cities' whereas the article uses the phrase, 'metro area'...

 
At 7/25/2012 10:49 AM, Blogger Larry G said...

perhaps a GDP to Debt Ratio index, eh?

 
At 7/25/2012 11:11 AM, Blogger james said...

The GDP in places like LA and New york city may be much higher than say kansas city kansas. But the cost of living in places like new york is much higher than say omaha for example you can buy a house in the surburbs of omaha for a fifth the cost of buying the same home in the surburbs of new york city. A store manager at a radio shack in omaha could live very nicely on threequarters of the salary of a manager in the surburbs of new york city. As far as buying a 600 foot condo its totally out of the question for the radio shack manager in the surburbs of new york city even if that manager makes forty thousand dollars a year compared to thirty thousand dollars a year for the store manager in omaha. Compared to the manager in new york city surburbs theirs lots of nice homes available in the surburbs of omaha for one hundred thousand dollars. In other words the store manager in the surburbs of new york city is barly able to survive on the salary of forty thousand dollars. In other word when housing is taken into consideration omaha beats the surburbs of new york city hands down.

 
At 7/25/2012 12:14 PM, Blogger Larry G said...

James point is a good one also and many other countries, the health care costs also affect GDP.

 
At 7/25/2012 12:31 PM, Blogger morganovich said...

james-

that is why many comparisons of national gdp are done at purchasing power parity.

using such a list:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29

does not change the standings for us cities much.

 
At 7/25/2012 3:50 PM, Blogger PeakTrader said...

Western European income is over $10,000 a year less than American income, on average, and I suspect a larger percentage of them live in (expensive) big cities, with lots of taxes and regulations.

 
At 7/27/2012 12:28 AM, Blogger OBloodyHell said...

I believe the phrase most of you are still searching for is....

.

IS THIS AN EPHING *great* COUNTRY, OR WHAT?

.

 

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