http://news.yahoo.com/china-really-v...104800689.html
Many businessmen believe American hegemony is doomed by China's muscular manufacturing sector. Not so fast, critics say America is on the decline, and a rising China is on its way to trouncing us, right? That seems to be the conventional wisdom highlighted by a new survey of Harvard Business School graduates. Roughly two-thirds of respondents expect America to "lose ground" to Brazil, India, and China, says the Economist. More than seven in 10 believe U.S. competitiveness will decline in the next three years. "America's most glaring weaknesses," these ex-Ivy Leaguers said, are "its political system (this was the number-one complaint by far), its schools, its insanely complex tax code, its macroeconomic policies, its regulations, and its legal systems." Is American hegemony really in trouble?
Yes. Obviously, China is pulling ahead: The New York Times just reported that Apple has sent hundreds of thousands of manufacturing jobs to China — jobs that are never coming back to America. It's easy to see why, says Adam Clampitt at The Huffington Post. Apple needed to hire 8,700 industrial engineers to oversee its iPhone's manufacturing operation. In America, it would have taken nine months. In China, it took 15 days. "Our nation has some soul searching to do if it really intends to compete in a globalized economy." We need vocational schools that focus on large-scale production. We need infrastructure to handle "fast-paced, flexible, and highly technical supply chains." Otherwise, we're toast.
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America is doing just fine: "Predictions about the death of American hegemony have been greatly exaggerated," says Daniel W. Drezner at Foreign Policy. Yes, China is doing well. Yes, America's public debt is soaring. But the United States is actually doing a "relatively good job" at trimming its total debt (the sum of consumer, investor, and public debt). And don't forget: The American manufacturing industry is on the mend. We're making real progress toward energy independence. When you look at the big picture, this economic doomsaying "sounds like a lot of pious baloney."
"Predictions about the death of American hegemony may have been greatly exaggerated"
It's actually China's dominance that is greatly exaggerated: Let's put this in perspective, says Michael Beckley at International Security. "The United States is not in decline; in fact, it is now wealthier, more innovative, and more militarily powerful compared to China than it was in 1991." Sure, China looks impressive when you compare it "only to its former self." But the focus on China's growth rates "obscures China's decline relative to the United States" in per-capita income, military spending, and the tech industry. "China is rising, but it is not catching up."
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I've been to China. Several times. it is a crumbling shithole. From Zhangzhou to Shenzhen and parts in between. I saw women allowing their kids to pee on public streets, old crumbling communist era block houses, beggars standing next to Rolls Royces, and more. Why is China building like mad? to replace the sub-standard Communist era crap they built before it all falls down and kills thousands. So what are they really accomplishing? not all that much really if you factor in the fact that they are only really replacing crap housing. And then there's that "little" labor problem. Why did Japan yawn and say "whatev" when China surpassed Japan as the world's second largest economy? because the average Chinese makes about 4,000 US dollars at state run companies.
"Workers employed by State-owned enterprises earned an average annual income of 26,600 yuan ($4,000) in 2009. Private sector employees made 18,600 yuan," he said.
http://www.chinadaily.com.cn/china/2...t_11709811.htm
The average Japanese on the other hand made about US 29,000 dollars.
Average Employment Income
: annual, per worker, incl. dependent & self employment
Disposable Gross (1) 2005
24,697 3,190,848 29,304 3,786,080 constant 2005 US$ at PPP current yens (1) Based on salary & business average income per workers' household and number of earners per household. Source: National Survey of Family Income and Expenditure, Japan Statistical Yearbook, 2007 [17].
http://www.worldsalaries.org/japan.shtml
Yes i'm aware the years are not the exact same but in this case they don't really need to be. It is still a HUGE difference between about US 4,000 per year in China vs. about 29,000 US dollars in Japan. This is why in part China exports so much of what they make, their own people literally can't afford to buy most high-end goods they make. The Japanese couldn't care less that China surpassed them in pure economic output, they make over 7 times as much on average. Yes Japan is more expensive to live in, but also their standard of living is much higher, as you'd expect.