A graph shows the difference in GDP per capita between France and Mississippi.
It would illustrate the French economic downgrading compared to the United States.
A comparison which is not serious, according to the economists interviewed by TF1info.
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Would France be poorer than the poorest of the 51 American states? It is a very unflattering comparison which is relayed by numerous French accounts on sides of the United Kingdom or Japan.
“France is now poorer than the poorest of the 50 American states, Mississippi. Before wanting to 'redistribute' wealth, Europe forgot that it was necessary to create it”criticize this account (new window) by sharing a chart. The argument is taken up by Damien Rieu (new window)far-right activist, or by Pravda (new window)one of the identified Russian propaganda sites.
An argument already used by Jordan Bardella
What does this graph say? As its name suggests, it ranks the GDP per capita of the richest and poorest U.S. states across the country based on that of the G7 countries. With 46,000 dollars of GDP per capita, France would therefore be lagging behind… and poorer than the American state considered to be the poorest: Mississippi, with a GDP per capita of 51,420 dollars. The argument was already used by Jordan Bardella a few months ago. On the set of TF1 in May, the president of the National Rally (RN), then head of the list in the European elections, told Gabriel Attal that “Today we have the GDP per capita of the poorest American state, that is, Mississippi.”
The graphic circulating today has its origins on November 18 on the English-speaking site (new window) “Visual capitalist” which therefore offers visuals and diagrams on various subjects, mainly economic. The GDP per capita of France presented there is that of 2023, and the figure put forward is consistent with World Bank estimates. (new window) at 44,460 dollars, compared to double for the United States ($81,695).
A gap and a French dropout which has caused a lot of ink to flow: in July 2023, The World pointed out in an editorial (new window) what “the GDP gap (was) now 80% between Europe and the United States” and referred to a comparison made between European countries and American states, by the European Center for International Political Economy (ECIPE). This independent think tank had also reached the conclusion (new window) what “American states (were) much more represented at the top of the ranking than EU member states.”
“Comparing cabbages and carrots”
However, such a comparison does not hold, believes Christophe Boucher, professor of economics and finance at Paris Nanterre University, for whom “this graph compares cabbages and carrots: with gross errors and other more subtle ones”. Indeed, the criteria for GDP per capita vary between American states – whose GDP is calculated by the Bureau of Economic Analysis (BEA) – and the G7 countries: “BEA estimates for U.S. states are more localized and sectoral, while GDP estimates for countries are more global, incorporating international factors like purchasing power and foreign trade. This makes direct comparisons between GDP of a State and that of a country methodologically delicate”.
But above all, the GDP per capita indicator shows a biased reality… by not taking into account an essential element for comparing wealth: the cost of living, which is certainly lower in France than in the United States. “The flaw in the measurement is that it doesn't take into account inflation. They took the current GDP, they put it in the same currency, and then they divided it by the number of residents”notes Éric Heyer, director of the Analysis and Forecasting department of the OFCE (French Observatory of Economic Conditions). To include the cost of living, an indicator exists: that of GDP in purchasing power parity (PPP). Here, the wealth gap between France and the United States is narrowing significantly, which our two economists interviewed confirm.
“France is generally located between 25th and 30th place in the world in terms of GDP per capita corrected in purchasing power parity (PPP). In 2023, its GDP per capita in PPP is estimated at around 61,157 dollars, which place behind countries like Germany or Sweden, but ahead of other large European economies like Spain or Italy”underlines Christophe Boucher.
The United States is in 9th place, with a GDP per capita in PPP of $81,695. Even within the country, this indicator varies greatly, as shown (new window) the BEA, marking strong “regional economic disparities”. In summary, the presentation made by this graph is misleading and cannot be done this way. Purchasing power parity, essential for comparing wealth between two countries, should have been included.
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