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The Chinese gov did play a big part in keeping the economic boom going. They continually propped up the housing bubble even though it was generating new constru

The Chinese gov did play a big part in keeping the economic boom going. They continually propped up the housing bubble even though it was generating new construction well over demand and could have crashed multiple times. They did a bunch of currency manipulation to keep exports going. Whatever that was keeping shipping costs in and out of China so low worked very well. I don't think you can rule out the government as a factor, there's plenty of cheap workers in the world that want money.

raxxorrax 7y ago
True, but I doubt that creating bubbles will create long time economic growth. And that there are indeed are cheaper workers elsewhere has already become a problem for China. Still, you cannot say they didn't grab the opportunities and have indeed build up significant industrial infrastructure. Maybe a strong central government is currently required to keep the peace for so many different people, but the tendency to see Chinas governmental system as some form of panacea for all problems is a bit off in my opinion. Given more time to develop, I believe the authority will decrease and that this process actually gives more room for even more opportunities.
eru 7y ago
A reasonable monetary policy will avoid recessions, yes. Currency manipulation is not really a useful concept.
ClumsyPilot 7y ago
It's a bit rich to criticise China's approach to currency after 2008. Their government should be given credit for basic competence, which our leaders don't seem to have. Their government has consistently put major support behind key industrial sectors and built out infrastructure that enabled industrial growth. Just as an example, China now has more high-speed rail than the rest of the world combined. They are the world's leading manufacturer of solar panels, electric vehicles, etc. There are several countries with equal or better starting positions, yet no achieving equivalent economic growth. Meanwhile holders of the highest office in US/UK are busy with Brexit, building a wall, and denying climate change exists.
- friendlybus 7y ago
  I fail to see the lack of basic competence once you look outside of hot button issues, or even inside those issues. It is trivial to make both China and the west look good or bad with a selective view. I was not seeking to criticize China (though I will if it makes sense to) but to make the observation for parent's sake that the Chinese gov does in fact play it's hand in the economy.

raxxorrax 7y ago

True, but I doubt that creating bubbles will create long time economic growth. And that there are indeed are cheaper workers elsewhere has already become a problem for China. Still, you cannot say they didn't grab the opportunities and have indeed build up significant industrial infrastructure. Maybe a strong central government is currently required to keep the peace for so many different people, but the tendency to see Chinas governmental system as some form of panacea for all problems is a bit off in my opinion. Given more time to develop, I believe the authority will decrease and that this process actually gives more room for even more opportunities.

eru 7y ago

A reasonable monetary policy will avoid recessions, yes. Currency manipulation is not really a useful concept.

ClumsyPilot 7y ago

It's a bit rich to criticise China's approach to currency after 2008. Their government should be given credit for basic competence, which our leaders don't seem to have. Their government has consistently put major support behind key industrial sectors and built out infrastructure that enabled industrial growth. Just as an example, China now has more high-speed rail than the rest of the world combined. They are the world's leading manufacturer of solar panels, electric vehicles, etc. There are several countries with equal or better starting positions, yet no achieving equivalent economic growth. Meanwhile holders of the highest office in US/UK are busy with Brexit, building a wall, and denying climate change exists.

friendlybus 7y ago
I fail to see the lack of basic competence once you look outside of hot button issues, or even inside those issues. It is trivial to make both China and the west look good or bad with a selective view. I was not seeking to criticize China (though I will if it makes sense to) but to make the observation for parent's sake that the Chinese gov does in fact play it's hand in the economy.