05.31.2010 0

A Tale of Two Countries: Why the U.S. is Drowning in its own Blood while China Prospers

  • On: 06/10/2010 21:09:24
  • In: Economy
  • By Bill Wilson

    Two unrelated stories in early June show in stark detail why the United States is on an accelerating downward, death spiral while China is continuing to build a solid foundation for economic domination in the decades to come. The actions reported in and of themselves will hardly register on the radar of most Americans. But they portray the crucial errors and arrogance of the Obama regime. They also point to a different path, a way forward out of the morass of ultra-liberal, ideological delusion that is now policy in Washington, D.C.

    The first article, appearing in the Washington Post, details Chinese investment in the basket case of Europe, Greece. The Chinese government is investing “hundreds of millions — perhaps billions — of euros” into Greek infrastructure. Not the soft infrastructure that is thinly disguised consumption but in the hard, base platform that will allow both China and Greece to build prosperity.

    Greece’s primary port city is Piraeus, a gritty industrial zone to the west of Athens. China is investing heavily to modernize Piraeus. Why? The answer is simple. The investment is so China will have a port to off-load mountains of Chinese exports to Europe. They are making investments that will enable industry to produce and sell more. And that means they are investing to put their people to work.

    China has learned the hard way that control of all elements — what was once called total vertical integration — means maximum profit. Greece is flat on its back. China can get what it wants cheap. The irony of a communist state teaming up with a petty bourgeois neo-socialist government to crush unions allied with a local communist party just to maximize profits is too sweet not to note. But all such theoretical conflicts are of no consequence to the dictators in Beijing when in the hunt for increased market share.

    Contrast the Chinese model with a big announcement made the same day by Barack Obama. Obama committed the United States taxpayers to $400 million in aid to the Palestinians in Gaza. What will the $400 million buy? Schools, mortgages for local citizens to buy homes, water treatment facilities and other associated “soft infrastructure” expenditures.

    Is there any economic return on this money? None that is readily apparent. Is there any link to U.S. business thereby creating jobs for American citizens? Not unless they are a top level bureaucrat. What do we get out of it? Good karma, that’s about it.

    So, while the Chinese invest in hard things that directly help create jobs in their country, the United States lavishes money on things the locals should be doing for themselves — things that any nation should want to do for themselves from their own savings, investment and hard work.

    In Greece, China creates the foundation for the Greek people to do for themselves. In Gaza, the United States practices the toxic, paternalistic enslavement of the welfare state.

    Were that all, it would be bad enough. But, of course, there is more. The Chinese are making these investments with saved money, money they have stockpiled. The United States is frittering away $400 million it doesn’t have. In fact, we are borrowing the money, throwing yet another brick on the backs of our children and grandchildren, unconcerned about their future.

    In short, China is building jobs and a future for theirs, while the United States is going deeper in debt.

    Whether there is time for America to reverse course is something one can only guess. But the path of enlightened self interest and national sovereignty practiced so aggressively by the Chinese is clearly the way the U.S. should go. The “World Government” dreamers and Ivory Tower gurus need to be shoved aside and hard-nosed realists put in their place. Just like they have done in China.

    Bill Wilson is the President of Americans for Limited Government.


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