Alfred
Posts: 6685
Joined: 9/28/2006 Status: offline
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quote:
ORIGINAL: Macclan5 Insightful comments / some critical points. 1) GDP and growth. GDP growth means very little. GDP growth from $1 USD to $2 USD is 100%. So what when compared to the GDP in the Trillions. It is a shame on the economics profession that so many economists still accept at face value China's official public economic data. Most economists who actually bother to look closely at the figures (and don't have a self interest economic agenda to push) view them as just fiction. A far more meaningful comparison is GDP per capita. Look it up on Wikipedia - it has the IMM / World Bank / CIA estimates. This too is not without its problems. China suffers from two serious issues which are masked by per capita figures. Firstly there is a considerable disparity between the owners of capital/party connections and labour. Secondly it is a myth that all in China are being pulled up out of poverty. The great economic growth is very much focussed on the coastal edge. Growth in the rural areas has been much more modest. To date what keeps most Chinese in line is the hope that they can join the gravy train of economic growth seen in the urban centres, hence why they flock from the countryside to the cities but this is no panacea de to the internal migration restrictions which exist.[/I] GDP per capita (sometimes refereed to as PPP purchasing power parity when normalized against currencies) speaks to a Nations ability to 'afford' anything. It speaks to sustainable taxation, it speaks to sustainable investment in social programs, it speaks to sustainable investment in Military spending, it speaks to sustainable investment in infrastructure. Countries can choose to cut up the pie different ways but the higher the GDP per captia is the more wealthy you are with options to invest. That is a rosy view of per capita. I personally prefer to view per capita as indicating (providing the disparity is not too bad) more the general well being of the citizens and their discretionary expenditure capacity. The ability of the state to dip into this discretionary capacity various greatly between states, a command economy having greater capacity than a free market economy to do so. Typically the USA has a GDP/Cap ~ $59000+. Canada for example lags ~ $48000 + . Germany is ~ $50000. United Kingdom is ` $43000. Little Norway often leads developed Nations as $70000+ but note that North Sea Oil boosts Norway's statistic significantly. Norway for example has chosen to invest in cradle to grave social pensions. Asian economies lag all. South Korea is among the best but trails the most developed nations ~ $39000. China sits ~ $16000. That is a huge huge gap. China's ability to sustain investment in everything noted above (social programs, Military, infrastructure) is decades away from matching the so called 'western'Nations. Hong Kong may be very modern - but there are parts of China that are not. 2) Demographic crunches. Interestingly most Nations now face significant demographic crunches ~ in theory. The baby boom was everywhere. India and Turkey are two economically developed Nations that seem to have pronounced advantages in this area compared to the rest of the world. On the troubled side : China and Japan significantly. USA, Canada, UK, Germany et al as well perhaps to a lesser extent than China. Russia by some accounts faces such a demographic crunch further fueled by emigration that Russia population is projected to significantly decrease by 2050 perhaps making Russia an economic hardship case. However there is growing skepticism among Economists about the influence of demographic crunches. In and of themselves they don't explain the entire picture. You don't know 'what comes next' in terms of growth. You don't know what comes next in terms of scarcity of labor. You don't know what comes next in terms of economic advancement. Without being too political...if "space asteroid mining" happens to be the next economic boom - less labor is likely needed and the skills to successfully implement already exist to a more significant degree in USA Canada Japan etc. Perhaps China / India / Russia will participate with growing space programs but their collective success rate is substantially lower than NASA, EU, Japan Canada in consortium and Tesla - an American Private company. The problem so many modern economies face is not a shortage of labour per se but a shortage of taxation sources to support future known social expenditure commitments. Europe and Japan have for a number of years been tasked with how to generate revenue to support their ageing populations as the base of working people paying personal taxes is called upon to support an ever increasing sized retiree cohort. This is a challenge which will very soon afflict China too. China too faces the other whammy that its labour costs are increasing as its actual labour shortage starts to bite, a problem not replicated in those countries (eg the USA) with healthy migration (whether legal or illegal) flows. 3) Militarily a Regional Power I have to agree with the wise Moose. Every Nation is simply a Regional Power compared to the United States of America. In simple terms Russia / China / others perhaps India who are developing CVs could project force for a limited time in a limited action somewhere else in the world. Force such as CV interdiction or an Infantry Division in situ for a period of time. Since June 1943 - the simultaneous invasion of Normandy and the Mariana's - only the United States of America would be able to project force / support and sustain it in two hemispheres at the same time. Truly it may strain American resources and could cost.. but only the USA can actually accomplish it. Only the USA since 1943 - 2018 Not so. The last 18 years have shown that even the USA lacks the capabilities to sustain simultaneously large scale military operations in disparate theatres. It retains the capability of shifting resources from a cold theatre to a hot theatre. It remains a global power because it still maintains substantial forces globally (plus has many interlocking military alliances) but at their current level they do not suffice to conduct a WWII level of combat intensity simultaneously in all of them. Plus no one really knows whether in a future conflict all that real time electronic capability, upon which the US military relies upon so much to maintain superiority, will survive sustained and focussed enemy counter measures. Alfred
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