Saturday, April 2, 2011

China Is Winning - Time Is Running Out For The US

Anyone who has traveled to China during the last 10 years has seen their remarkable growth and development funded primarily by trade with the United States.  Let's face it, as a result of bad US government policy, over regulation and high taxes in the United States manufacturing of just about everything we buy in America is happening in China.   The Chinese have been very smart.  Instead of squandering the tax revenues they have generated in the last 10 years on new entitlement programs, they have invested in infrastructure, business parks, universities, energy production and US Treasury bonds.   As a result, about half the population in China still lives in poverty, but the other half is middle class, though there is a lower standard of living in China than in the Unites States.   The middle class in China lives in far less space and consumes far less than is typical in the United States.   

The Chinese are focused, disciplined and passionate about making their country a leading economic and military power and will stop at nothing to make it happen.  They don't want to be the same as the United States, they want to surpass the United States.  To do so, they control their currency to insure a trade surplus and implement government policies aimed at growth and development for both the short and long term.   They are also guilty of industrial espionage.  However, their dramatic growth has come at a cost.   China is not a free country.  There is massive censorship and dissent is not tolerated.  700 million Chinese still live in poverty; though one could argue that 10 years ago, a billion people lived in poverty.   China practices crony capitalism; but so does the United States as favored companies and influential people get favors from government.  We can only wonder if China had been a capitalist country in the last 60 years, rather than a communist country, where they would be today.  Of course, it really doesn't matter because it is what it is. 

China is winning related to economic growth and development as they are growing at 8 - 10% a year contrasted with US growth of 2 - 3%.   In 20 years or less they will be the largest economy in the world and further be able to challenge the United States militarily.  Presumably, they will have to deal with those living in poverty, one way or another to avert an uprising; but they have the money to do it.  China is a creditor nation that owns more than a trillion dollars of US government debt.  Taxpayers of the United States will be paying off this mortgage for the next 50 - 100 years or more as interest payments consume more and more of our federal spending crowding out our ability to fund infrastructure, education, health care, Social Security, Medicare etc.         

While China will continue to grow, the economic demise of the United States can be prevented if our elected representatives act wisely NOW; but time is running out.  We must stop all the deficit spending and begin to pay off our national debt.   We must recognize that competition is global and stop imposing regulations and high taxes on business in the US that pushes more jobs overseas.  We must become energy independent by utilizing all sources of energy available in our country.  We must stop creating new entitlement programs like ObamaCare that will bankrupt our country.   We must deal with public employee unions to get government cost under control.  

Unfortunately, none of these things will happen as long as Socialists are in control of local or state governments, which is the reason we must sweep them out of office in 2012 and 2014 by electing Conservatives that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform, a strong national defense including securing our border and fighting terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth and jobs in America.   Most important, if we don't get back on track and soon, China will win and we will lose.   If that happens, we will end up working for them for years to come.  It is just that simple.   

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