OBAMA IS. You can coast to the presidency absent any understanding of economics. The rise of China Obama put down, in his pep-talk to the nation, to the child-rearing methods of the Tiger moms (http://barelyablog.com/?p=33597). Sinophobia notwithstanding (http://www.ilanamercer.com/phprunner/public_article_list_view.php?editid1=584), as American society is increasingly silhouetted by the State, China is undergoning considerable economic restructuring and market reforms, the consequence of which is a 300 million strong Chinese middle class, and poverty levels that have receded from “53 percent in 1981 to 8 percent in 2001. Only about a third of the economy is now directly state-controlled. As of 2005, 70 percent of China’s GDP was in the private sector.” The Chinese financial system is duly being liberalized—banking is diversifying and stock markets are developing. Protections for private property rights are being strengthened as well.
Obama thinks that a nascent China owes its increasing economic strength not to this liberalization, but to the fact that they “started educating their children earlier and longer, with greater emphasis on math and science,” and that the government is “investing in research and new technologies. Just recently, China became home to the world’s largest private solar research facility, and the world’s fastest computer,” he added.
The truth is that the US is in the red and getting redder, not China.
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The central planner-in-chief also denounced his subsidies to the oil industry—he did a lot of denouncing of policies he had either put in place, or could have repealed—while, in the same breath, recommending that we “invest in tomorrow’s energy.”
In other words, state planning is a “subsidy” when it is applied to “bad” energy, but an “investment” when applied to the “good” energy source.
The Goods on Gas for Asses: The more efficient the source of energy, the less waste and pollution are involved in its conversion into energy. Think of the totality of the production process! The fewer resources expended in bringing a fuel to market, the cleaner and cheaper is the process.
Oil is the second most efficient, cheapest source of energy, Obama’s wish is our demise. For ordinary folks, the biomass-based economy means life without the basics.
UPDATE (Jan. 27): In reply to Bob’s comment: Neither do I hold China to be a capitalist society, if you read the article I cited. But neither do I think the US is capitalistic any longer; we just pretend we are. My comments spoke to a trend: China is growing because it is liberalizing its economy; we are shrinking because we are centralizing ours.
