How China’s Phony Economy Fooled Obama

The Ryugyong Hotel towers over the North Korean skyline, all 105 floors of it. It is impressive from a distance, but inside it’s empty. China doesn’t just have one Ryugyong Hotel, it has countless empty hotels and even empty cities.

Russia’s Potemkin Villages have been repeated on a massive scale in China where entire cities and malls stand empty. Obama has urged us on to more government projects to compete with China, but we have no hope of defeating the People’s Republic of China in the area of useless government funded construction. Nor should we be trying to… as a recent article in Foreign Policy tells us.

Could the same malady have struck Americans when it comes to China? The latest news from Beijing is indicative of Chinese weakness: a persistent slowdown of economic growth, a glut of unsold goods, rising bad bank loans, a bursting real estate bubble, and a vicious power struggle at the top, coupled with unending political scandals. Many factors that have powered China’s rise, such as the demographic dividend, disregard for the environment, supercheap labor, and virtually unlimited access to external markets, are either receding or disappearing.

The message is not that we should be trying to become more like China, but that we may already be too much like China.

China’s economic ills are far more deeply rooted: an overbearing state squandering capital and squeezing out the private sector, systemic inefficiency and lack of innovation, a rapacious ruling elite interested solely in self-enrichment and the perpetuation of its privileges, a woefully underdeveloped financial sector, and mounting ecological and demographic pressures.

During the Cold War, America was not trying to compete with the USSR by trying to be more like it, but was trying to be the best country that it could be.

Obama insists that we need to compete with China on socialist government projects. Democrats constantly point to China’s infrastructure investments. But what are China’s infrastructure investments really worth?

One of the longest bridges in northern China collapsed on Friday, just nine months after it opened

A nearly 330-foot-long section of a ramp of the eight-lane Yangmingtan Bridge in the city of Harbin dropped 100 feet to the ground. Four trucks plummeted with it, resulting in three deaths and five injuries.

The 9.6-mile bridge is one of three built over the Songhua River in that area in the past four years. China’s economic stimulus program in 2009 and 2010 helped the country avoid most of the effects of the global economic downturn, but involved incurring heavy debt to pay for the rapid construction of new bridges, highways and high-speed rail lines all over the country.

And it’s not unique.

Since 2007, China has experienced at least 18 bridge collapses resulting in 135 deaths and untold economic hardship

China’s economy is as hollow as its bridges. Obama’s insistence on imitating the People’s Republic of China would make our economy just as hollow.

  • pagegl

    Obama and others like him do not want Americans to excel. In my lame opinion, the Democrats are the party of mediocrity. They seem to want to force us to the lowest commomn denominator. Rather than expect people to do their best, they want to dumb us all down in a misguided attempt to force equality.

    • Daniel Greenfield

      Mediocre people are easier to rule.

    • Snow White

      They have already reduced our education system to the lowest common denominator. Since total integration 50 years ago, all our children graduate with the same type education that only blacks got at their old pre desegregation all black high schools. Our eduation system has been dumbed down to their level, ie.. the lowest common denominator. In 1895 the Supreme Court ruled Blacks were entitled to their own schools because they couldn't keep up with the white students.(Plissy vs Board of Education) 50 years later, the supreme Court ruled they had to be mainstreamed into the white schools. They still can't keep up with the white students so the white students aren't taught any more than the blacks can learn. Welcome to the third world. ,

      • antiDave

        Actualy my frien, the black students in the 30's and 40's outperformed their white counterparts with the used books the white schools were done with. The problem for the black community now, with respect to the education system is the same as the root of most of society's ills, the destruction of the traditional family.

  • Marvin Fox

    I hear a lot from the left about emulating other countries who are socialists. They mention the Norther Europeans, other Eurozone nations, Canada, China, and once in a while Cuba's medical system. Anyone who respects that anti-American judgment must have two things. First, an unfamiliarity with our own nation. Second, no understanding of the same unfamiliarity from those whose opinions they are giving such respect.
    The American people are getting more familiar with the Democrats/Progressives/Socialists/ Marxist, or whatever obscuring titles they give to themselves. The American people are more actively looking for a way to remove those revolutionaries from national positions than at any other time in the long American history I have observed. We are about done with "The issue is never the issue; the issue is always the revolution, and the revolution is about power." i hope November will put that slogan on their political tombstone.
    Marvin E. Fox

  • PaulRevereNow

    And the refurbished San Francisco-Oakland Bay bridge, built with Chinese steel, also had a section or two give way. The Chinese economy has its eye on profit, but quality of work isn't on their short list of goals. They refuse to allow their currency to float, and the U.S. winds up subsidizing their factory production. And they are using their ill-gotten gain to build up their military, preparing to go to war against the U.S.

  • Michael Thomas

    Original PHONY ECONOMY (c) 1991 Take a listen! Don't support racist crony capitalism.