The Chinese act more American than Americans. • Protective tariffs of 25% have fostered the growth of domestic auto, steel and other industries. In less than a decade, China has built the worlds largest steel industry to support its ongoing boom in construction and infrastructure. • Price supports for farmers have kept Chinese grain at a higher price than international market rates and allowed nearly 35% of the labor force to stay on farms (compared to 0.5% in the US). • A system of state-owned banks directs public credit to infrastructure, industry and farms. • And all this hard-earned money is put back to good use by making China the world leader in infrastructure by a mile: nytimes/2015/01/13/business/international/in-china-projects-to-make-great-wall-feel-small-.html?_r=1 Granted, China has a long way to go in terms of human development, literacy, etc. But in terms of economic production, it has learned the right lessons of history (FDRs New Deal) and abandoned the wrong ones (Maos a pig iron forge in every back yard en.wikipedia.org/wiki/Backyard_furnace)
Posted on: Sat, 17 Jan 2015 02:02:07 +0000
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