tag:blogger.com,1999:blog-3448927642739850334.post5240697925963802340..comments2023-10-29T08:06:00.610+00:00Comments on The Political Economist: Why China won’t overtake the USVuk Vukovichttp://www.blogger.com/profile/01878567452492217960noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3448927642739850334.post-88254010824940266762012-06-05T14:54:20.578+01:002012-06-05T14:54:20.578+01:00I agree with Kyle, and as I said in the text Chine...I agree with Kyle, and as I said in the text Chinese rapid growth was due to (1) a lot of catching up and (2) massive industrialization and urbanization. Both of these effects are temporary and China's reluctance to accept necessary political change will soon enough cause a political crisis, as well as an economic one.Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-88616807127291363102012-06-04T14:38:12.754+01:002012-06-04T14:38:12.754+01:00seen not weenseen not weenKyleNhttps://www.blogger.com/profile/15766641765942339253noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-5377766855776137102012-06-04T14:36:39.719+01:002012-06-04T14:36:39.719+01:00There is nothing magical about State capitalism. T...There is nothing magical about State capitalism. The remarkable growth rates in China are quite natural considering that they started so far behind. When a backwards agrarian nation modernizes and industrializes we see this type of growth. <br /><br />India also is showing remarkable growth rates now and they have a totally different system. Even the old Soviet Union showed similar rates of growth back during Stalin's time. That does not mean that the communist system was superior as some useful idiots in America were saying at the time.<br /><br />What is more interesting to me is what will happen in China when the rates of growth eventually slow to match the normal rates of growth ween in mature economies. Will the desire for political change then create a crises?KyleNhttps://www.blogger.com/profile/15766641765942339253noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-30527897345670064842012-06-03T20:31:01.497+01:002012-06-03T20:31:01.497+01:00The sustainability issue is left to be seen, but y...The sustainability issue is left to be seen, but you have to agree that the current levels of growth have indeed been astonishing in China and some other countries experiencing "state capitalism" (like S. Korea or Vietnam). This makes you wonder that there might be something in this type of governance. An initial democratization cannot be enough in poor countries as it is too fragile to achieve growth and stability. The benevolent dictator approach can provide a much better solution to get the country started.Greg67noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-26531951853934213092012-06-03T19:11:51.254+01:002012-06-03T19:11:51.254+01:00Yes, export growth can only come as an outcome of ...Yes, export growth can only come as an outcome of a strong investment and production basis. This is why I believe that <a href="http://im-an-economist.blogspot.co.uk/2011/11/currency-devaluation-why-is-it-useless.html" rel="nofollow">currency depreciation</a> to support an export-led growth makes no sense unless a country has a strong production-based economy to support it. <br /><br />As for the second part of your comment, yes, investment-led growth tends to be the one guaranteeing development, but even then the question of its sustainability depends on the scope of innovation and creative destruction following that growth. And this can only be achieved through proper incentive creation enabled by more political and individual freedom.Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-15948251241758391612012-06-02T22:17:07.580+01:002012-06-02T22:17:07.580+01:00Regarding the growth structure graph, where net ex...Regarding the growth structure graph, where net exports really had a small role in GDP (particularly compared to investments), does this mean that economies don't usually grow on exports, as is commonly held in the economics profession?<br /><br />I mean, if China, which is an exporting powerhouse and has in absolute numbers surely the highest level of exports in the world, had growth mostly driven by investments, than the conclusion is that any growth not based on investments is bound to be short lived.John Turpinhttps://www.blogger.com/profile/03146853575797586917noreply@blogger.com