Archives for posts with tag: econ

Update: Added some great quotes from The New Yorker at the end of the post.

With all the doom and gloom about raising the debt limit of the US government (currently at $14.2 trillion dollars), it’s hard to remember that this is the original issue which started all this hysteria about government spending and whether or not to raise taxes.  I strongly believe that the debt limit itself is useless and does little to control spending.  There are far more useful market incentives to controlling the debt, and it is frustrating to watch this become such a political football when real people are the ones who suffer if the US defaults.

Read the rest of this entry »

Who coined the term “widget” anyway?  Ah, but we are talking about China now, so perhaps they were one of the four (five) great inventions that benefited mankind.  The others, of course, being soccer, pizza, Koreans, and unsanitary conditions.

But anyway, today we talking about the dilemma of a widget maker in China, or the value of increasing your own value, in the value-added chain.  This is an especially sensitive time for China in this regard, and if they continue their present course, China is likely to become too expensive before it becomes rich.  Let me explain:

Read the rest of this entry »

Predicting Chinese economic performance is useless.  It’s really impossible to guess, since there are just countless variables.  Given the nature of the Chinese state, most of these variables are confidential, further adding to the hilarity/difficulty of trying to make an accurate prediction about the Chinese economy. Nonetheless, many academics, bankers, and policy wonks have made it their professional hobby to give their two cents.

Read the rest of this entry »

With the rise of the middle class in major cities throughout China, a potentially very disruptive identity is also bound to emerge: The concept of the individual taxpayer.

Read the rest of this entry »