PeakTrader.com

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PeakTrader said...
Instead of focusing on job creation, the government sends more unemployment checks, after the huge "stimulus" bills, while implementing massive regulations that drive-up costs and uncertainties. The result will be huge tax increases, and less government services.

I doubt "most average joes" add-up how much they actually pay in taxes and how much regulations actually cost them. Then estimate how much more they're destined to pay in the future.

And then stop to think that if it weren't for private businesses offsetting part of the high price of government, they would've joined something like the Tea Party long ago.

The huge fiscal spending spree the past 1 1/2 years didn't generate enough growth (or perhaps offset the Fed's quantitative easing). So, what will government do for an encore? The longer this weak recovery goes on, the worse it gets (and it's even weaker, perhaps till mid-'11).

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PeakTrader:

I believe in equality. Everyone should have 24 hours a day.

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PeakTrader said...
Many Americans have become too picky about jobs. Americans need to follow George W Bush's advice:

"The fact that they purchased the machine meant somebody had to make the machine. And when somebody makes a machine, it means there's jobs at the machine-making place."

Or if you're wealthy enough, create your own job.

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PeakTrader said...
There are many misperceptions about China's economy.

China sells its goods to the U.S. too cheaply and lends its dollars to the U.S. too cheaply. Why? To maintain a politically acceptable level of employment, by inducing U.S. demand through a virtuous U.S. cycle of consumption-investment.

The Chinese communist elites and American capitalists gain at the expense of the Chinese masses, who are exploited. The elites become stronger, while the masses become weaker. The elites spend on public (or state) goods, while there's little for private goods. So, of course, China imports few U.S. consumer goods.

The U.S. gets cheap goods and cheap capital, while China gets cheap jobs and stronger communist control. The U.S. needs to scale back on regulations and taxes to increase employment. However, we're heading in the opposite direction, and in a big way.

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Jet Beagle said...
Peak Trader: "The Chinese communist elites and American capitalists gain at the expense of the Chinese masses, who are exploited. The elites become stronger, while the masses become weaker."

I agree with most of what you write, PeakTrader. I do not believe these statements, though, accurately portray what has been happening in China over the past 20 years. Your statements exactly contradict what I have heard directly from someone I worked with who was a citizen of China.

Can you perhaps provide some evidence or arguments that your statements are true and those of my friend Huang were not?

Based on what I have read, I agree that Communists in CHina are trying to appease the masses and retain control through their protection of Chinese manufacturing. But I see no evidence that the masses are growing weaker as the overall stabdard of living in China has sharply increased.

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PeakTrader said...
JB, Chinese wages and working conditions are well documented, along spending on state goods, profits of U.S. multinationals, private consumption, etc.

It's uncertain if living standards of the Chinese masses are rising or falling, because social costs aren't taken into account. However, it's certain the communist elites have become more powerful.

Here's part of a conversation I had with someone in China, who wasn't one of the 1 billion dirt poor people (and wasn't taught Western orthodox economics):

T Yang: We need generations hard working, but situation is gradually changing which can contribute to china's nice economic polices such as 8 employees theory; cat theory, stone theory, SEZ theory, tier development theory, three reprenstive theory... let's sample "8 theory" as it clarifies that it is socilism not capitalism if you are employeeing 8 staffs or below, the policies was implemented in Year 1988, economy was then booming contributed to the theory, hahaa!!

PeakTrader: T Yang, I've shown you lots of evidence that support my statements. Obviously, you're in denial. China is adding more to foreign living standards than to its own (see prior Mattel and other foreign firm contracts with the communist elites, along with real losses in the foreign currency and bond markets). Over the past several years, it's possible, China's living standards fell, because of higher social costs, which are unsustainable (see examples of lower production standards). China may be working for free, if all costs are taken into account. There's a concept called "moral hazard." When Chinese firms don't take into account negative externalities, to maintain high profits, then more negative externalities will be created. Anyway, it's obvious, China's economic policies (including "growth at any cost") are suboptimal to large extents.