We’re Number Two, So We Don’t Try April 30, 2014Posted by geoff in News.
Saw this over at Hot Air:
China poised to pass U.S. as world’s leading economic power this year
I don’t like registering for sites, so I couldn’t read the whole article at the Financial Times (ah – you can read the whole thing here), but the gist is apparently that the World Bank adjusted its purchasing power parity (PPP) values. [PPP takes into account that $1 in China will buy you about twice as much stuff as in the US] When you account for PPP differences, China’s GDP is larger than ours.
So no real change in circumstances, just a change in bragging rights. China’s raw GDP still isn’t supposed to surpass ours until 2019, though that date keeps moving forward.
But it doesn’t have to be that way. Or maybe it does, given the brilliance of our leadership. The leadership who…
- … takes the manufacturing sector which has miraculously fought its way back to international competitiveness (not sure I believe this, but let’s pretend it’s true) and decides that raising minimum wage will help boost the economy. And then doubles down by pursuing the Trans Pacific Partnership deal with Asian countries won’t make things even worse. Here’s what a Democrat had to say about the deal:
“TPP would force Americans to compete against workers from nations such as Vietnam, where the minimum wage is $2.75 per day,” DeLauro said on a press call this week.
- … notices that people are driving less due to the poor economy, so gas tax revenues are down. Their solution? Make it more expensive to drive by adding tolls on interstates!
- …has been bragging for 5 years about jobs added, apparently oblivious to the shift from high-paying jobs to low-paying jobs. And without addressing the drop in workforce participation.
- …bet the farm on increased exports, more manufacturing jobs, an explosion of economic activity from green energy & technologies, and retraining. None of which happened.
Five years ago we all predicted that the President’s economic policies would delay recovery, increase debt, and suppress long-term economic growth. After five years we’ve seen an anemic recovery, increased debt, and suppressed long-term economic growth. Meanwhile the President continues flailing and making things worse, all the while telling us how simply awesome his economic performance has been.
Maybe China’s growth will wake him up a bit.