Why China beats the U.S.: The road to serfdom slopes downward
The Washington Times ^ | July 14, 2009 | Lawrence Kudlow
Posted on Tuesday, July 14, 2009 7:12:52 AM by Scanian
There's no question that current government policies for taxes, spending and regulation are causing the United States to lose competitiveness in the global race for capital, prosperity and growth.
Of course, China has been moving in the direction of free-market capitalism for years. To some extent, this shows the positive benefits of America's free-trade policies and its open-mindedness in helping nurture not only China's growth, but also middle-class prosperity worldwide.
But what's particularly galling about Obamanomics is that we may well be losing our competitive edge with Europe. While Europe is ever so slightly moving toward the policies of Ronald Reagan and Margaret Thatcher, the United States is shifting toward an overtaxed and overregulated model that smacks of Francois Mitterrand. That's something no one should want to tolerate.
Heavy government controls at home, along with an income-leveling social policy couched in economic-recovery terms, is no way to run a railroad. At the simple stroke of a computer key, world investment flows to its most hospitable destination. That includes a reliable currency. However, in President George W. Bush's last year and President Obama's first, the United States has become a less hospitable destination for global capital. That should worry everybody.
But let's first look to the China story.
We know China is already our principal banker, to the tune of nearly $1 trillion. As Mr. Obama's record spending and borrowing continues -- he'll be the greatest bond salesman in American history -- our financial reliance on China grows daily. But that's not all.
Fortune magazine recently reported that the number of U.S. companies in the world's top 500 fell to the lowest level ever, while more Chinese firms than ever made the list. Thirty-seven Chinese companies rank in the top 500
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Hysterical. The "communist" Chinese are pursuing capitilism, while we pursue marxism.
