China and US

NYTimes writes:

The U.S. has had the biggest economy in the world for more than a century, but most projections show that China will surpass us in about 15 years, as measured by purchasing power parity.

So what can New York learn from a city like Kaifeng?

One lesson is the importance of sustaining a technological edge and sound economic policies. Ancient China flourished partly because of pro-growth, pro-trade policies and technological innovations like curved iron plows, printing and paper money. But then China came to scorn trade and commerce, and per capita income stagnated for 600 years.

A second lesson is the danger of hubris, for China concluded it had nothing to learn from the rest of the world – and that was the beginning of the end.

I worry about the U.S. in both regards. Our economic management is so lax that we can’t confront farm subsidies or long-term budget deficits. Our technology is strong, but American public schools are second-rate in math and science. And Americans’ lack of interest in the world contrasts with the restlessness, drive and determination that are again pushing China to the forefront.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.