Unfair Advantage
October 10th, 2007 by 
reality
Those darn Chinese are cheating again. Don’t they know that increased government revenue should just lock in increased government spending? Look what happens when politicians don’t think they need to buy votes to stay in office.
HONG KONG (MarketWatch) — “Hong Kong Chief Executive Donald Tsang pledged to cut corporate profit and salaries taxes Wednesday as part of a wider goal to return wealth to the populace at time of budget surpluses.
In the first policy address of his second term in office, Tsang said stronger-than-expected revenue enabled him to cut the salaries tax for top earners to 15% from 16%, while the corporate profits tax would fall to 16.5% from 17.5%. The tax cuts are to take effect in the fiscal year beginning April 1.”
And people wonder why they’re doing well. Perhaps because their government is smarter? And more democratic? And less inclined to start wars? Yes, I know there’s no choice of party. But there isn’t in the US either, just the illusion of choice.
I remember some time ago Steve Roach wrote about the China Development Forum, where even the Premier (Wen Jiabao) sits down for free-wheeling discussions with outside experts, economists from around the world. Can you imagine George Bush being willing or able to do that?
Posted in Government, International, Steve Roach | 
October 10th, 2007 at 8:32 am
I wouldn’t hold China up as the paradigm of good government. I have been there many times. They have no control of the local governments and extreme corruption in both government and business. The pollution is the worst in the world and cleaning it up will take a massive effort and put a huge hit on their profitability. They are taking advantage of massive externalities at this time. The banking system is not transparent either and full of bad loans.
October 10th, 2007 at 10:32 am
First of all, I don’t think there is such a thing as good government. Power corrupts.
And I agree, pollution is definitely much worse in China than in the US. The other problems you mention are also widespread in the US. So are many of the other issues that people point to in China, such as depletion of water resources, human rights, the death penalty, etc.
Don’t you think that it is a little bit strange that, should Hillary Clinton win the next Presidential election which is at least possible if not likely, then it is probable that, by 2016, the US will have been be ruled for 28 years running by members of only two families? (Will Jeb run?) (Civics question: Is this an oligarchy or an aristocracy?)
October 10th, 2007 at 11:39 am
yes, i should have qualified by saying i don’t think the USA is actually the paradigm of good government anymore, maybe once a long time ago… maybe…
October 10th, 2007 at 1:55 pm
I agree, personally I don’t want another Clinton in the White House, especially Hillary… Can you say “Socialism?” Unfortunately if Hillary wins the democratic nomination, she will probaly win the presidency. It seems a majority of American’s sadly, share her views…
October 10th, 2007 at 5:23 pm
Leaving aside her views, the fact that she is Bill Clinton’s wife shows that the system is inbred, sick and broken. The US needs new ideas, new directions. The “two party system” is a lifeless monopoly on power, a dead weight on growth and change.