Do We Have What It Takes To Get From Here To There? Part 2: China
from Of Two Minds
Pull aside the curtain and what you find is a China crippled by corruption and debt.
Does China have what it takes to get from here (industrialized export economy) to there (sustainable growth, widespread prosperity)? The same can be asked of every nation: do they have what it takes to move beyond their current limitations to the next level?
Let’s start with the fundamentals, what every nation must have to establish a stable, sustainable, widely shared prosperity. These are not just ethical niceties–these are the foundation of economic security.
Consider corruption. Corruption isn’t just a “values” issue: corrupt societies have corrupt economies, and these economies are severely limited by that corruption. A deeply, pervasively corrupt economy cannot get from here to there.
Corruption acts as a “tax” on the economy, siphoning money from the productive to the parasitic unproductive Elites skimming the bribes, payoffs, protection money, unofficial “fees,” etc. By definition, the money skimmed by corruption reduces the disposable income of households and enterprises, reducing their consumption and investment.
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2012-11-09 12:01:57
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