Comments on: China Will Surpass Our Gdp Soon, If The Us Re-industrializes And Protects American Enterprise Can We Remain #1?

By: tbonegeo

tbonegeo — Tue, 18 Aug 2009 03:06:34 +0000

China could pass our GDP but it is not because of their industrialization. It is because of their labor laws they have. The poverty line in China is at $90/year, so making $.20/day there is like minimum wage here. When we start producing the same products over here, our goods will be much more expensive than Chinese goods. The only way to compete would be to put tariffs on Chinese Goods, but that would start retaliation tariffs and we would not be able to compete in the world market for any of our more productive goods that we produce and it would hurt our economy more. It is a proven fact that companies who outsource actually create more jobs than they lose in the long run and pay more for the new jobs we create because those companies are not wasting money on “not maximizing profit”. They are maximizing profits and it needs to be done. It is part of the business cycle for us to be in a slower economic growth or decline currently where we are just building up more to maximize our profits in the long run. China is doing exactly what our country did in the early 1900’s, but they still do not have well protected private property rights. Until they establish that, they will not compete with the US. But on the other hand, the United States is trying to limit our private property rights which could lead to a massive economic decline. A new scientific Revolution will come to boost our economy, but that revolution will not be in industrialization, it will be in information. We are moving to more of a service economy and that is where our country can maximize our comparative and absolute advantages over China.

By: JWebb

JWebb — Mon, 17 Aug 2009 20:26:21 +0000

I agree with you man. Technology is the way to stay ahead of the game. If you want a good read check out “The Singularity is Near” – Ray Kurzweil. The technology is discovered, it just needs to be further developed and implimented.

By: meg

meg — Mon, 17 Aug 2009 16:51:39 +0000

China has nearly 4 times our population and to be number one we need have to have 4 times their gdp per capita Their gdp per capita growth rate is much greater than any developed nation has ever achieved, because they can use borrowed technology. So the only way to “remain #1″ is to slow down their growth and keep them living in poverty. Most people would find such a policy immoral and I doubt we could do it even if we tried.

By: Vash

Vash — Mon, 17 Aug 2009 13:10:52 +0000

All developed rich countries’ economical characteristic is 75%+ GDP is from service sector, with only 20% from industry. If you really want to downgrade to a developing country, go ahead lol…