Wednesday, January 13, 2010

Tom Friedman has interesting discussion about China.

New York times Columnist Tom Friedman has an interesting discussion about China.He is explaining how many of the bubble problems in china may not be problems at all.In china as they move up the production in higher value goods instead of exporting Jobs and factories they move them to hinterlands of china and move and enlarge the engine of growth.Its large pool of capital in the hands of the communist state which is quite apt at using money and ideas for public good unlike America where is always bottle neck of ideas .In the short run it seams that communist China is eating our school lunch and is bullying all our large enterprises with its state enterprises and we do not know what to do other than hand our lunch to them.Most of our manufacturers have surrendered to china the ability to produce the goods and seems like without a fight.They have understood our economic system and are using it to their advantage and we in our arrogance are unable and unwilling to understand and compete with them in a way which will keep our country with a high standard of living and make changes where we remain masters of our destiny.

This crisis of confidence leave many other nations in the world which have not benefited from the technological and socio-political advances wondering and questioning the free enterprise of west which has not always delivered the goods and services to the needy.Now China is exploiting the resources of the poor nations and depriving them even the meagre wages as they are bringing their own manual workers which they have in plenty in the hinterlands.
China has developed to a level where it will do fine.I hope more freedoms will come to its citizens .It has done many things well it believes like the Marx and i am paraphrasing it that capitalist will sell you the gun and bullets to shoot them with it.Is our system so bankrupt.

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