A couple years ago, when I worked for Chegg Tutors; I helped a student with comparing nations. China was one of those nations. There was an important discovery that I made. China spends more than the United States on business capital. By virtue of having the highest GDP, the United States still has the world's largest economy. Yet, the fact that China invests more in their businesses, that they have a much bigger population, that their businesses are becoming larger, employing more people, it is only a matter of time that China's economy, its GDP will be bigger than the United States.
What will be the reaction of politicians, business leaders and economists when the Chinese economy catches up to the American economy. I predict that there will be a good deal of anger and blame that will surface. Why is US no longer #1?
What could we have done to stay #1 longer?
What did we do wrong, and what is China doing right?
The Republicans will blame the Democrats, and state that if the American economy was not so regulated and so taxed the US would still be dominant not only over China but over the world! This is similar to what happened in China in 1949 when the nation became Communist. There were Republicans who placed great blame on the Truman administration for China becoming communist. There was this great conceit that US could have prevented China from being communist. If only we would have intervened! So, how is it that when we actually intervened in Vietnam we could not prevent South Vietnam from becoming communist. If we couldn't succeed there, how the hell could we have succeeded in China.
And so it will go when China has the world's largest GDP. There is no denying that the United States will have less power (obviously with wealth comes power). Yet, this is happening. with China giving considerably more foreign aid to other nations than the United States does.
No comments:
Post a Comment