In 2019, the US had GDP of nearly $21.5 trillion. Luxembourg had GDP of only $71.1
Billion. US GDP was 300X greater than that of Luxembourg. Does that mean that Americans are much better off than Luxembourgers? No. Luxembourg is an extremely small country, about the size of Kansas City, nestled between Belgium, Germany, and France.
While the United States had a population of over 328 million, Luxembourg had only 613,894 persons in 2019. Once we take the difference in population into consideration, Luxembourg managed to produce nearly twice the value of goods and services for its citizens as did the United States.
| GDP 2019 | Population | Per Capita GDP | |
| United States | $21,427.7 Billion | 328.2 million | $65,288 |
| Luxembourg | $71.1 Billion | 613,894 | $115,818 |
Based on the following table, the United States actually ranks only 13th in the world for per capita GDP – even lower than the Republic of Ireland.
Another useful application of the per capita GDP concept is in making comparisons over time. However, to do so we must first adjust any financial data for inflation. (A loaf of bread in 2019 is much more expensive than a loaf of bread in 1929.) Financial data that has been adjusted for inflation is referred to as “real”. The Real GDP numbers that follow have all been adjusted to reflect 2012 prices, making the numbers comparable.
Real GDP in 2019 is significantly larger than Real GDP in 1929 – roughly 19 times more. But the US has a much larger population now. Nearly three times larger. So, we must also adjust for population difference. On a per capita basis, the gain is only about five times as much.
| Year | Real GDP | Population | Per Capita RGDP |
| 2019 | $19,073.1 Billion | 328.2 Million | $58,114 |
| 1969 | $4,942.1 Billion | 202.7 Million | $24,381 |
| 1929 | $1,109.4 Billion | 121.8 Million | $9,108 |