Sunday, September 11, 2011
"Can America Compete with China on Infrastructure?: Yes we can
I'm really getting tired of hearing this notion that China is passing America economically and perhaps in every other important category. Here some facts America has a population of 313M people and a GDP of 14.78T$ and a Per Capita Income of 47K$. China has a population of 1.33B people and a GDP of 5.87T$ and a Per Capita Income of 4,382$. China has a population of over four times as America and America has an economy 2.5 times the size. And our PCI is almost twelve times the size, China has come along way but they have a hell of a long way to go. They have beautiful infrastructure in their big cities, where most of their wealthy and Middle Class people live. But we are still talking about a Developing Country where with about 1B people who live in awful poverty in their Rural Areas. Our poor Rural Areas are probably rich compared to China's. China probably within 10-20 years will have the largest Gross Domestic Product in the World or GDP. But unless America continues to slide our Per Capita Income which is more important, because that gets to Purchasing Power will probably still trample China's. Russia, Mexico and Brazil all have PCI that are at least twice the size of China's. These are all still Developing Countries that are moving in the direction of becoming Developed Nations with a long way to go.
And you want to talk about Governmental Systems, sure lets do that. China of course has a One Party System with an Authoritarian Dictatorship, meaning the chinese don't get to select their Leaders and Representatives. Unlike America of course where we get to choose all of our Leaders and Representatives and then vote them out in the next election if we don't like them. The chinese obviously can't do that and unless your a socialist or a communist, you would prefer to have a say in selecting your own Leaders rather then have them picked for you. So of course its easier for China to invest in things like infrastructure. Because the President of the Peoples Republic doesn't have to go through the PR Congress in order to do that. Or the fact that he knows his party controls Congress as well, so its a lot easier to get things passed. The United States Federal Government was purposely designed to make it hard to pass laws, because it was written by liberals and libertarians. Who believed in Limited Government and didn't want the President to become a dictator. Its not our form of government thats the problem but the people running it. Or some of the people and thats why we have General Elections.
America will always be as important in the World as we need to be and want to be, as well as the most important country in the World. As long as we do what we need to do to stay there. We may not always have the largest GDP, but our Per Capita Income will always be larger then anyone of the large countries. And I mean countries 100M people or more, if Europe united then they would be right there with us or ahead. We've decline and we need to rebuild, we can't continue to carry the debt and deficit that we do. We need to build and repair our infrastructure, we need a National Energy Policy that gets us off Foreign Oil and makes us Energy Independent. And we need to reform our Public Education System, we need to start making things in America again and exporting them. And if we do these things in a positive way and pay for them without borrowing. We'll always be as powerful and as important as we need to be. No matter what China does.
Click on the link of the blog to see a video about Chinese and American Infrastructure