Economist Paul Krugman probably ranks among the biggest China bashers among well-known economists. His latest article http://www.nytimes.com/2011/12/19/opinion/krugman-will-china-break.html?_r=1&emc=eta1 continues to fuel the usual misperceptions about China. First he claims that Chinese consumption still remains too low at 35%. He fails to mention, however, that low consumption is normal for countries that successfully transition from an agricultural economy to an industrial one because capital earns a greater share of national income. He also conveniently ignores the fact that China’s per capita consumption growth this past decade is the fastest ever recorded by any nation. The real per capita consumption growth actually accelerated to 10% per year.
He also claims that China has a real estate bubble Continue reading
Herman Cain has revealed an embarrassing truth about his politics which is that he lacks even superficial knowledge about the world outside of U.S. borders. When he said that China is a threat to the U.S. because it is developing nuclear weapons and later retracted his statement with a new statement saying China doesn’t have a nuclear capability close to that of the U.S., he not only undercut his original assertion, but he displays an ignorance that poses a danger to Americans and the world at large if he came to power.
Leadership selection is the most important job the citizens of a nation must do in a democracy; otherwise we might as well continue with monarchies. Continue reading