The USA and China; who is winning?

If you look beyond the Reader’s Digest patriotism of the mainstream media and the high school cheerleading of so many in politics you will see that China, despite all its many faults, is becoming the world’s dominate nation as the US Empire sinks into the mire. People outside the boarders of the US can see all this much clearer than the propagandized citizens of the US.

China is a country with four times the population of the USA. China has an economy that has been growing at double digit rates for decades. China has overtaken the US as the world’s most vibrant economy; truly the “Asian Tiger” as the US has become the “paper Tiger” that Mao claimed once long ago. The Chinese economy may slow down, but it will dwarf the economy of the US.

The old USSR failed in its race with the USA due to the US having far more economic power than the Soviets. Today China has far more economic power than the Americans. It does not take a Nostradamus to see where this is headed. While America decays with its drug wars, hot wars, cold wars, open wars, covert wars, trade wars, and its central planning of a crony-capitalist economy (fascism); the Chinese have given economic freedom to its citizens. Sure, the Chinese are not totally free; but then you must compare the Chinese citizen to the slaves in the US. Since power flows from economic power and economic power flows from free markets — the Chinese are far ahead of the US.

The Chinese are known to be smart, disciplined, studious, and practical. (see Thomas Sowell) They are also nationalistic. It is to our good luck that the Chinese historically did not seek to rule foreign lands to the degree that Westerners seem obsessed to do.

The government of China is perfect (for a government) in that it is an intelligent dictatorship that is obsessed with the advancement of the country in all aspects. The US on the other hand is caught up in the collectivist mindset of making sure that everyone is obeying the central planners in the capitol city, while at the same time plundering the productive to give to the non-productive. The US is committing suicide; it no longer manufacture things — manufacturing has fled American shores. What is made in America these days? What are the Americans good at?

We all know that America is the world’s greatest debtor nation while China is the world’s greatest creditor nation. We can’t repay what we owe so we must default at some point or we must hyper-inflate and destroy the common citizen in the process; yet the government spends and borrows like money grows on a printing press. Rationally, this would seem a good time to let go of unaffordable things like funding the war making Pentagon and Intel agencies with more money than the rest of the world spends all put together. We spend Trillions to “be safe” when all it does is put us at higher risk and impoverish the nation’s people. But our leaders think we cannot reduce military spending. They think our economy is a war economy and that to reduce the troop levels by 500,000 (just to pick a random number) would add 500,000 to the unemployment rolls. Perhaps they fear armed rebellion if that many vets became unemployed all at once. But it gets worse, since there are whole towns and economies dependent on the military spending. It is the same with the millions of people who are employed by the government in counter-productive jobs in DC and around the country. “What would they do?”, ask the central planners.

Until the US stops trying to run the world and returns to a belief in free market laissez faire we have no hope to stay up with China. It may be too late now anyway.

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3 thoughts on “The USA and China; who is winning?

  1. A thought came to mind whilst I was reading your post. The first was Hoppe’s book, Democracy: The God That Failed. There he basically states that if one must have a government it makes more sense to have a monarchy than a democracy, for the monarch owns or presumes to own the entire country and is thus relatively more forward thinking as compared to democracies, which are run my temporary care takers who do not own the capital stock, only the current revenue. This means the democratic officials are less incentivized to do what is good in the long term, and instead just raise taxes and get all the benefits they can while they are in office. So it occurred to me that maybe this is why China is doing ok?

    But still, I wonder how they have gotten to this point? Are they far more market oriented than we are? I know almost nothing about their economy and economic policies…I’d like to see an Austrian analysis of China from Mao to now. I wonder what it would reveal.

    • Yes, I have thought of Hoppe’s comments on monarchy over Democracy often and the Chinese have a long tradition of Emperiors. The Communist system was tossed aside but the form remained. It is like a small ruling click that rules as a “team king” or something. I think I’ll write about it someday soon when I find the time.

      Good observation you had there.

  2. China, economically frail before 1978, has again become one of the world’s major economic powers with the greatest potential. In the 22 years following reform and opening-up in 1979 in particular, China’s economy developed at an remarkable rate, and that momentum was maintained into the early years of the 21st century.

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