Tuesday, November 17, 2009

Obama in China: Learn from China

Analysts, pundits, and numerous China experts keep naysaying China’s economic growth. Sooner or later, they say, China will undergo a financial and economic implosion that hit Western economies in 2008-09.

They are wrong because they underestimate China. Chinese laborers work six-day, sixty-hour weeks, which compensates for a raft of other problems. Hard work is a key to China’s success.

Many of the pundit-analyst-experts lack long-term vision. I first saw Shenzhen in 1963 from the hills above the Lok Ma Chau lookout in Hong Kong. Shenzhen then was a small village consisting of a few huts. The urban region encompassing Zhenzhen now totals nineteen million. I first saw Shanghai in 1981. I wandered the city using a 1935 tour guide that remained accurate. Mao’s economic policies had frozen progress dead in its tracks. Shanghai now has more than double the number of skyscrapers in New York and a much better airport, to name just a few points of comparison. So on for the rest of the country, as urbanization moves westward.

China has successfully managed its transformation through property bubbles, dot.com busts, SARS, and the Asian financial crisis. Western methods of macroeconomic analysis, which exclude the propensity to hard work, are inapplicable to China.

I’m from Missouri, the "Show Me" state. Seeing is believing. I have been seeing for the better part of five decades and I believe.

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