My understanding of the outlandish HP ratings we see and have seen is that since electrically developed HP is measured in watts (746 of em per HP, aka 0.746 kW) which are volts x amps (and a little power factor thrown in with ac circuits). So they monitor the volts and lock the rotor monitoring the amps. Throw the switch. As the amps ramp up they watch the volts and as soon as they fall through a pre determined minimum where the product of volts and amps is a maximum that is the number used for the rating.
My opinion it's nothing but a marketing ploy to help in justifying the cost of things making you think you are getting something for your money when you aren't.
So when you are running your vacuum cleaner with an advertised 1 hp motor on a 25' 18AWG cord plugged into 120 volts and it doesn't get hot from current overloading, you know why.
Finally if you are buying a motor and want to know what it really is, multiply the line running amps (stamped on the ID plate) by the applied voltage, multiply that by 0.85 to account for internal osses, and another 0.85 for worst case power factor and you are at about what you have for a motor.
So running (120v and 16a x .85 x .85)/746 = 1.9 or about 2 hp.
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