« Notable | Main | In praise of Alfredo Perez »

Wednesday, November 28, 2007

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341caf5253ef00e54f90294c8833

Listed below are links to weblogs that reference Can China find an 'eastern' model of development?:

Comments

Danny L. McDaniel

The Chinese are master forgers and they are copying what works best: plain old fashion, simple American capitalism. The Chinese have the luxury of living America's golden-era bygone yesterday of the late 1940's, 50's, 60's and early 70's. A strong industrial base that attracts the attention of the rest of the world that want to invest and visit their counrty.

The US could relearn a few thing from the Chinese, especially those Americans born in the 1980's that are now graduating from college and university with engineering and MBA degrees. It is those people that never seen the US at its' industrial zenith. That experience would be like reliving history they never experienced. China has become the business worlds paradise. They don't have to worry about climbing on the "green" bandwagon or adapt social policy to their corporate lifestyle. American business has to relearn that they are in business for the sake of capitalism and not social work.

Danny L. McDaniel
Lafayette, Indiana

Arthur Eckart

Danny, I doubt the U.S. wants to adopt China's poor economic policies. Throughout the 2000s, China's gains of trade became increasingly smaller, which was required to maintain export growth, and acceptable levels of output and employment. So, U.S. gains of trade became increasingly larger. Consequently, the U.S. increased net assets and consumer surplus by huge amounts, which raised U.S. living standards substantially.

Over the next few years, U.S. producers will sell at high prices and more dollars will be spent by foreigners, unlike some foreign producers who sold to the U.S. for almost nothing. I doubt anyone alive will see an economy similar to the U.S. economy of the 2000s this great again, except perhaps the U.S. economy of the 2010s.

Arthur Eckart

Also, I may add, you state: "American business has to relearn that they are in business for the sake of capitalism and not social work."

In the 2000s, U.S. firms had a record 18 consecutive quarters of double-digit earnings growth, while there were massive foreign capital inflows, which created an "oversupply" of U.S. assets and goods. Many Americans "supersized" their houses, autos, electronics, etc., because after zero percent financing, no down payment, cash rebates, etc., monthly payments were only a little more for the supersized assets and goods.

The global economic imbalances were created by export-led countries. The U.S. responded with appropriate policies that captured the greatest gains of trade at near an optimal rate.

Arthur Eckart

Moreover, I may add, in real terms, foreigners will pay much more for U.S. assets and goods than Americans paid for foreign assets and goods. So, the U.S. "wins" both in the prior and future periods, i.e. the U.S. captured the greatest gains of trade, including imports, profits, and investment. International trade increases the world economic pie, e.g. through the Law of Comparative Advantage. So, no matter what happens in the world economy, the U.S. will gain the most or lose the least.

Export-led countries needed the U.S. (e.g. to maintain output growth and employment) more than the U.S. needed export-led countries. The U.S. is the only economy that can expand with huge negative net exports. The excess dollars export-led economies absorbed, to maintain overproduction, will be absorbed at slower rates, which in effect increases the U.S. money supply and stimulates the U.S. economy, while slowing export-led countries.

Conventional wisdom doesn't understand how powerful the U.S. economy has become. One example is U.S. firms offshored productive jobs in manufacturing or in obsolete industries, because of declining prices and/or rising costs (e.g. energy costs) for huge profits. Then shifted those resources into higher quality goods, e.g. with market power. So, foreigners will pay high prices in real terms, e.g. through the depreciated dollar (U.S. producers can raise prices and foreigners will still buy), improving U.S. "terms-of-trade" (and deteriorating foreign terms-of-trade), U.S. supply constraints, etc. However, U.S. inflation domestically won't accelerate, until the slack is taken out of the U.S. economy to where there's economic strain. Over this future period, U.S. consumers will pay-down debt and build-up saving, while real U.S. income rises at a faster rate.

Of course, there's a housing bust, after an extended housing boom, which will basically affect the entire U.S. economy. However, there are also positive forces, e.g. the U.S. export and tourism booms. There are hundreds of major forces pushing and pulling the U.S. economy. What's important are sound U.S. economic polices. Inferior foreign economic policies are a bonus for the U.S., particularly when the U.S. responds appropriately.

buy viagra

Hey Great post. Really a very nice piece of information. Newbies like me get a good idea about this... I'm going to comment now... I think i did it. Thank you..

Minibus Hire

Record their interest in a simple database and send them a follow-up email if they don’t take action. They will probably appreciate the reminder. Say thank you if they do respond.

Web Design Kent

One can think of Chinese political attitudes as broadly similar to those on the pro-regulatory side of the financial debate. China seems to view elections as dangerous because of the 'social pathologies' of American or European culture. We're too willing to run crazy risks just for the sake of getting to elect people who turn out to be really stupid and incompetent. It looks like a really lousy bargain.

สถานที่ท่องเที่ยว

The global economic imbalances were created by export-led countries. The U.S. responded with appropriate policies that captured the greatest gains of trade at near an optimal rate.

Buy Adderall

TO BE SUCCESSFUL AT THEIR job, internal auditors must be able to write, speak, and listen effectively.

buy codeine

Additionally, listening is difficult because people don't work as hard at it as they should.

Buy Adderall

Internal auditors must listen to explanations, rationales, and defenses of financial practices and procedures

Buy hydrocodone

Lovely! so helpful and coherent, simply a pleasure to read !

Buy codeine

Fantastic! so helpful and coherent, simply a pleasure to read !

Buy Adderall

About one third of total Danish employment is in the public sector

Buy hydrocodone

Langenbrunner had assisted on their third goal before Sutter rebuked him for laziness in the defensive end

Buy hydrocodone

But, I’ve never once held something personal against a player from a confrontation

GHD

successHerve Leger dressesexpect
Herve Leger clothingearly

make sureHerve Leger clothing
desired piecesDiscount herve leger in minutes
eleganceChristian Louboutin SandalsThe creative vision
let me downChristian Louboutin Sandals Sale

leatherPrada SunglassesTalented artist
Oakley Sunglassesluxury
appealArmani Sunglassesthe most exciting

a href="http://www.designersunglasses-glasses.com/bvlgari-sunglasses-c-46.html">Bvlgari suglasses salethe detail
reallyBvlgari suglassesSpain
Cheap Bvlgari suglasses on slae


Martini Sunglassesed hardy kid tshirtsthe players
Ed Hardy Men Beach Pants
ed hardy hoodiesdisplay

a href="http://www.cheap-ed-hardy-clothing.com/ed-hardy-sunglasses-c-14.html">Cheap ed hardy sunglassesOne day
hardy clothingCheap ed hardy WomenApparently


ShopCheap Herve Leger Dressesthis summer
Discount Herve Leger Dressesmany times
my listHerve Leger Skirtall time

this reasonCheap Herve Leger Dress 2010well-known design
classifiedCheap Herve Leger Saleforever

a fewWomen Christian Audigier BagsApple floods

annually Women Christian Audigier Underwear
Women Christian Audigier Walletslogical

a piece of Christian Audigier Women Purses Discountthe pie
Christian Audigier Women Caps Discountfashion
Christian Audigier Women Hoodies Discountdaily


humanMBT Sandalswhy
questions MBT Sports Shoespanda
spend all day MBT Casual On Saleshopping

First offMBT SapatuGreen
United StatesWomen MBT Sapatu Sandalsconsumers
MBT Sapatu Men Sandals On Saleindustry

responsiblelouboutin pumps saleplanet
the environmentlouboutin shoes salebut also
pictureslouboutin boots saleshare

charmsMen Louboutin Shoesactivelytwo eras mightChristian Louboutin men sneakersextremelyin commonChristian loubout shoes discount salecollection

talking aboutDiscount Ghd Straightenerspecifically
Ghd Hair Straighteners Cheaplook like springGhd Hair Straighteners Cheapsport hardingBlue Serenity GHD IV Stylerstudentthe richDark GHD IV StylerteacherGHD Benefit StylershootsadnessHerve Leger Dress Discountdiscovery themeDiscount Herve Leger Dressstyler

fashionableDiscount Herve leger Bandage Dressincredible

sponserHerve Leger Clothing Cheapsurvival
encourageHerve Leger Clothing On Salelight
tell me truthDiscount Herve Leger Skirtdarling
a href="http://www.ugg-uk-australia.com/">ugg ukmistake
kateugg australiasomewhere
lineugg boots on salecan
theyuggs boots ukkinds
all bestuggs australiatheme

memoryugg 5359throw up
give meugg 1873its up to you
skyugg 5885closely

horkes

Remove it from the loud sound described as among the People of the individual during sleep, especially in the medical sense, the most common cause of snoring soft palate observed in adults, little more than normal growth of the tongue, the muscles sag and lose tension and blockage of the airway during sleep titresmesidir little of the language.

sac çikarici

Internet users in more than 2 billion people worldwide, 778 million the number of computers registered to the internet, the web of 313 million, a total of 205 million units in the name of that reported.

To the extent that there is hundreds of millions of blogs and video Ahmed, said that Turkey has been estimated that there's at around 30 million.

Ahmed, the computer recorded the number of Internet in Turkey has been reported around 4 million, 250 thousand under .. en told that the domain name.

diş beyazlatma kalemi

Save the essence of life in the treatment of skin allantoinle Snail! This essence creates a bad appearance and have no choice tahribatlarının skin no longer be removed even if the so-called cracks.

Nature of this herbal solution effectively and safely as possible to get rid of sivilcelerinizden! Skin care products on behalf of the choice deliberately choose to adhere and creams containing natural formulas that you keep the fault

extra jel

As millions of people who want to lose weight, but youDid he can not succeed in a kind of worry about your weight yanıyorsunuz more? You might think, and this process will be much easier to lose weight in a healthy way to get over ... Now a much more difficult as it used to have a nice view, but you have to do is that you want to attenuation.

mitsubishi klima servisi

Thanks for the info. Very useful topic

The comments to this entry are closed.

Information




  • TEST


  • Subscribe in NewsGator Online

Economist Weblogs

Disclaimer


  • This is a personal web site, produced in my own time and solely reflecting my personal opinions. Statements on this site do not represent the views or policies of my employer, past or present, or any other organisation with which I may be affiliated. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.