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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (128036)	7/28/2005 12:10:04 AM
From: neolib	Respond to of 793956

Right now through a combination of repressiveness and controlled exchange rate, the Chinese government is keeping their people poorer than they need to be. America has benefited from this trend. I suspect that it at least partly is to allow a controlled economic growth. Wrt to the controlled exchange rate, I don't follow you here. They have kept it depressed to bolster their export engine, which is the main source of enriching their people. If their currency were to appreciate the amount the US would like to see, there would be major employment shocks in China. Conversely, the US has benefited in having cheap goods for consumers, but worse competition for our exporters. Which is better? The bottomline is that high single digits growth such as China continues to churn out is most impressive. Can they do much better than that? Is 10-15 percent possible? I think China's transition away from communism (which I take for granted) compared to Russia's will be economically monotonic, with a nice growth rate. The Russian's got more of the wests freedom bug, while the Chinese seem to value stability above absolute freedom.