The world’s current economies are mired in the worst and most prolonged recession of all time. Led by the United States, countries worldwide have unsuccessfully tried to stimulate their free enterprise economies and grow their business sectors in a failed effort to relieve financial stress and induce new economic growth. However, in the midst of this economic free fall, one country is experiencing its fastest and most successful economic growth period ever. And, compared to the dying financial model of America and the rest of the world, that country, China, is looking at an economic future that is very rosy and bright.
America is saddled with economic woes. The land of the free, the home of the brave and the poster boy for deficit spending is watching its economy teetering on the brink of collapse due to its massive debt. The permanent residue of runaway governmental spending, wars on two fronts and the economic bailouts of the failing banking and auto industries has ravaged the American economy. Valuable jobs have disappeared and unemployment is skyrocketing throughout the country. The percentage of chronic unemployment is approximately ten percent of the nation’s population, a depressing and demoralizing figure indeed, and one that bodes bad news for any hopes of economic growth.
What does this bleak and hopeless picture of the American economy have to do with China? Why would China even be considered in a discussion of America’s economic status? The answer, surprising as it may be to some, is that America’s failing economy has everything to do with China. And as the U.S. financial dominance fades and its crushing debt grows, China’s economy explodes with growth so rapid and massive that it has surpassed Japan as the second largest economy in the world. In addition, to add insult to injury for the U.S., America finds itself drowning in foreign debt, with most of that debt owed to China.
Trends seem to indicate the decline of the Western economic model and the rise of that same model, albeit a redesigned and revitalized version, in the East. Indicative of these trends is South Korea, a free enterprise country which successfully patterned its economy directly after the American model and which rose to the twelfth largest economy in the world, no small achievement for one of the world’s smallest countries with a small population. However, due to the current economic climate throughout the world, South Korea finds itself in the same economic doldrums as the United States. China, on the other hand, has developed a version of the American free enterprise model that is contingent on active government involvement in economic growth and that has, thus far, been highly successful. It has allowed the country’s business sector to flourish and grow in a time of declining economic performance throughout the world. China’s “Communist Capitalism” financial model has dramatically altered the world’s economic picture.
America’s massive debt to China does not sit well with many U.S. citizens either. Fueled by controversial midterm election issues such as offshore jobs and foreign debt, many Americans have come to feel that China “owns” America. In a time when government influence on America’s businesses means “bailouts” without accountability, the Chinese government creates jobs and fuels the raging economy by commissioning new infrastructure and civil projects that precipitate continued economic growth. Business activity flourishes with the implementation of new highways, roads, bridges and communities. China considers their people the most important asset in economic development and that commitment to human resources has stimulated their economy beyond anyone’s reasonable expectations. This is not to say that China has improved their human rights record in order to fuel the economy, but they do treat the matter of human resources, manpower so to speak, with the utmost respect in order to accomplish the goal of successful business growth. Whereas in America, governmental involvement in business means “bailing out” failing and outdated automobile and banking industries without regards to accountability, to its Chinese counterpart, government involvement means fostering business innovation, creativity and entrepreneurship. Inherent in the Chinese model is a vibrancy, optimism and level of success that fuels the country’s financial growth.
In the meantime, the American economy flounders. Instead of creating jobs, the U.S. government spends valuable resources on its campaign to eradicate terrorism and on failed government initiatives such as the economic bailouts of the auto and banking industries. Without holding these industries to any standard of success or accountability, which the American government’s financial sector has not done, the economic benefits hoped to be derived from these bailouts are doomed to fail. Unlike the Chinese “Communist Capitalist” model, the American economic model seems to reward failure. In China, the auto industry flourishes and their banking sector is becoming one of the largest in the world. The U.S. has been slow to react, if they have reacted at all, to emerging manufacturing and service markets which are becoming the staple of the booming economic landscape in China. The bottom line, which is the main economic indicator in any model, is that in the current world economy, the sun in China seems to be rising brightly and powerfully in the Eastern horizon.