marichiko

It helps to read them, too.


Since I’m putting off an unpleasant chore, and since I’m feeling rather sullen at the moment, I’m going to give an answer to your comments that you don’t especially deserve. The following is largely from the CIA World Fact book. That’s CIA as in Central Intelligence Agency – not exactly a hotbed of bleeding liberal propaganda. The last I knew, the CIA does not check on my economic status before writing up its reports, either.

According to the CIA, China is (gasp!) run under a communist system of government.

The restructuring of its economy and resulting efficiency gains have contributed to a more than ten-fold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis, China in 2005 stood as the second-largest economy in the world after the US. The Central Committee of the Chinese Communist Party in October 2005 approved the draft 11th Five-Year Plan and the National People's Congress is expected to give final approval in March 2006. The plan calls for a 20 percent reduction in energy consumption per unit of GDP by 2010 and an estimated 45 percent increase in GDP by 2010.

According to a second hotbed of mindless liberalism, The Economist, China develops her economy through exporting, so the Chinese government protects her exporting companies. China subsidizes these companies, lends them low interest loans, and gives them tax refunds. Also, most importantly, Chinese government controls her foreign exchange rate and keeps the rate low. Under these protections, Chinese exporting companies have lots of advantages in competition with foreign companies.

Chinese companies have little concern for interest rates on bank loans since credit is allocated with little regard to its price. Despite China's reforms of recent years, the government still controls more than half of the economy. Most state-owned enterprises do not care about the cost of borrowing because they have no need to make profits


Back to the CIA’s lefty writings:

(US companies) face higher barriers to entry in their rivals' home markets than the barriers to entry of foreign firms in US markets… The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households...Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.

Some fun comparisons, again from the CIA Fact book:


Foreign reserves and gold: USA, $86.94 billion; China, $795.1 billion
External debt: USA $8.837 trillion; China, $242 billion
Population below poverty line: USA, 12%; China, 10%

So, Comrade Beestie, how many shares of free market Wally World stock did you say you owned? The Central Committee wants to know.