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The proposed border fence with Mexico is $23 million a mile. China can build a mile of high-speed rail for $30 million. China will have 25,000 miles of HSR be

The proposed border fence with Mexico is $23 million a mile. China can build a mile of high-speed rail for $30 million. China will have 25,000 miles of HSR before the first part of the California HSR is completed.

bumby 8y ago
How much of that price comparison is driven non-direct factors? In other words, is it a function of efficiency in project management or cost-of-living? Simple comparisons can hide a lot of confounding factors.
pkaye 8y ago
China is beating all other countries in high speed railway construction. And they really need it too. With the massive population they have, cars and planes are not enough for people to travel/work in their economic centers.
ac29 8y ago
Keep in mind the median Chinese income is under $2700 (and average a little over $3000) [0]. That's a huge part of why its cheaper to build things there - labor is an order of magnitude less expensive than in the US. [0] https://www.stlouisfed.org/on-the-economy/2018/january/income-living-standards-china https://www.stlouisfed.org/on-the-economy/2018/january/incom...
- melling 8y ago
  I’m simply pointing out the world’s second largest economy is able to do things that the world’s largest economy can’t. I’m sure there are lots of reasons. I doubt the salaries are the only explanation. With these advantages it’s quite likely that their ability to build infrastructure will enable them to take the number one spot in the world
  - Spooky23 8y ago
    It's one of the advantages of an all-powerful government. The project itself benefits from labor+scale. They are able to scale manufacturing by declaring the size and scope of the project. Similar to what the US did with road-construction... hundreds of contractors appeared to manage interstate projects as it was a well-known, decades long effort. The other factor is that the political environment in China allows for cheap, low friction seizure of land and homes. The US is capable of doing the same thing -- we did it for 50 years to build the interstate system. What is missing today is the will at the Federal level to invest billions. States lack the ability to borrow/print sufficient funds to build like this at scale.
  - zjaffee 8y ago
    They're already the number one spot in the world, their net purchasing power is higher than the US. Their nominal GDP being lower than the US's is an economic choice made by their government to keep growth happening. This said, China will never be a rich country in the way the US is due to it's incredible size.
  - freehunter 8y ago
    Turns out slavery, limitless debt, unfettered authoritarianism, and rampant abject poverty has its advantages when it comes to completing major infrastructure projects. Who knew.
goobynight 8y ago
How much of the $30 million is labor and how much would that labor cost in the US?
- bluGill 8y ago
  Good question, but it still is misleading. Because labor is cheaper in China they tend to hire people to do what machines would do in the US. 100 men (for hormonal reasons you would need a few more women but otherwise they work just fine) with a shovel can dig a hole as fast as one man with an excavator. When labor is expensive you go with the excavator, when labor is cheap the humans are cheaper because they maintain themselves.

bumby 8y ago

How much of that price comparison is driven non-direct factors? In other words, is it a function of efficiency in project management or cost-of-living? Simple comparisons can hide a lot of confounding factors.

pkaye 8y ago

China is beating all other countries in high speed railway construction. And they really need it too. With the massive population they have, cars and planes are not enough for people to travel/work in their economic centers.

ac29 8y ago

Keep in mind the median Chinese income is under $2700 (and average a little over $3000) [0]. That's a huge part of why its cheaper to build things there - labor is an order of magnitude less expensive than in the US. [0] https://www.stlouisfed.org/on-the-economy/2018/january/income-living-standards-china https://www.stlouisfed.org/on-the-economy/2018/january/incom...

melling 8y ago
I’m simply pointing out the world’s second largest economy is able to do things that the world’s largest economy can’t. I’m sure there are lots of reasons. I doubt the salaries are the only explanation. With these advantages it’s quite likely that their ability to build infrastructure will enable them to take the number one spot in the world
- Spooky23 8y ago
  It's one of the advantages of an all-powerful government. The project itself benefits from labor+scale. They are able to scale manufacturing by declaring the size and scope of the project. Similar to what the US did with road-construction... hundreds of contractors appeared to manage interstate projects as it was a well-known, decades long effort. The other factor is that the political environment in China allows for cheap, low friction seizure of land and homes. The US is capable of doing the same thing -- we did it for 50 years to build the interstate system. What is missing today is the will at the Federal level to invest billions. States lack the ability to borrow/print sufficient funds to build like this at scale.
- zjaffee 8y ago
  They're already the number one spot in the world, their net purchasing power is higher than the US. Their nominal GDP being lower than the US's is an economic choice made by their government to keep growth happening. This said, China will never be a rich country in the way the US is due to it's incredible size.
- freehunter 8y ago
  Turns out slavery, limitless debt, unfettered authoritarianism, and rampant abject poverty has its advantages when it comes to completing major infrastructure projects. Who knew.

goobynight 8y ago

How much of the $30 million is labor and how much would that labor cost in the US?

bluGill 8y ago
Good question, but it still is misleading. Because labor is cheaper in China they tend to hire people to do what machines would do in the US. 100 men (for hormonal reasons you would need a few more women but otherwise they work just fine) with a shovel can dig a hole as fast as one man with an excavator. When labor is expensive you go with the excavator, when labor is cheap the humans are cheaper because they maintain themselves.