Friday, March 27, 2015

What's So Bad About 7% Growth in China?

Nothing!

At 7% annual growth, real output doubles in 10 years, quadruples in 20, and grows eight-fold in 30.

In marked contrast, it takes 36 years to double output at 2% growth.

At 3% growth, output doubles in 24 years, quadruples in 48, and increases eight-fold in 72.

U.S. annual growth is likely to remain in the 2-3% range.

Even if these respective rates vary somewhat, China will be the unquestioned dominant power in Asia and the largest economy in the world within a few decades.  The notion of the U.S. containing China or trying to remain the dominant military power in Asia is seriously misguided.

In this regard, why not outsource security for the Middle East and the Strait of Malacca to China, Japan, and Korea, three countries that rely on energy imports from the Middle East?  Let them pay for it.  Make them stakeholders in Middle East stability.

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