China is world's biggest manufacturer PDF Print E-mail
Written by Stumo   
Tuesday, 08 January 2008

This Heritage Foundation piece debunks the World Trade Organization's recent findings that China's economy is much smaller than we thought.  China has actually passed the U.S. as the world's leading manufacturing economy.

Now that China's manufacturing sector has nosed past the United States, America's political leaders must begin to contemplate what China's economy will look like in another five years. It will likely be half-again bigger than America's industrial sector, giving China the capacity to assemble the building blocks of a military superpower.

To repeat, China is now bigger than the U.S. in manufacturing.  Right now.  Our biggest geopolitical rival - not our enemy, but our rival. 

China had the tools to unilaterally increase its trade surplus and create rocketing economic growth - and they used them.

The U.S. has the tools to neutralize the unfairness from currency manipulation, VAT tariffs, foreign subsidies, etc. - and we do not use them.  Someone might call us "protectionist" for neutralizing the protectionists.

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Colorado CPA member Milt Heft has these thoughts on money, wealth and the economy.  Heft is the owner of Petrogen, Inc in Colorado Springs.

A few thoughts about manufacturing:

There is a great misunderstanding of the relationship- between money and wealth.  The beginning principles with which we can all agree are a few and simple noble truths:
 
1. Money is meaningless without wealth.
2. Wealth is difficult to distribute without money.
3. Wealth is the reality of the physical things we need to survive and thrive:  food, clothing, shelter, ice cream & computers.  It is the product of mining, industrial production, and agriculture.
4. Money is anything that make the wheels of production and distribution go ‘round.
5. Money is easy to manufacture and control.
6. Wealth takes a lot of blood, sweat, toil and tears.

 


 

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