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Friday, July 5, 2013

By Michael Mccune: The Rant (government auditor for 16 years) - China's Economic Process Can't Help U.S. Recover - (( to Have Michael send you the Rant to your Email contact Him Here (( ))

China's Economic Process Can't Help U.S. Recover

Whenever the American economic woes are discussed in open meetings, someone will inevitably bring China into the conversation, implying the U.S. needs to develop better trade agreements to take advantage of the Chinese desire to improve the standard of living there.
That theory has more holes than a soaker hose.
Sarah Grant, a student majoring in Asian studies at Northern Colorado University in Greeley, just returned from a five-week trip through China. She graciously took some time to recap what she had observed during her trip. Culture shock hardly describes what she experienced.
The No.1 problem for those who look upon China as the saving entity for America's economy is you could improve the Chinese standard of living by 1000% and still be below what Americans consider lower middle class.
Grant gave an insight to this phenomena. "We took some exchange gifts for our hosts. They looked totally bewildered and reluctant to accept them. It is because they have no storage space at all. If room is not necessary to continue living, it is not there."
But hey, "That's China!"
A second problem for the pro-Chinese crowd, this situation is not likely to improve any time soon. According to Grant, "There is no incentive for the people to do anything. The state owns everything, everything is taken by the state. There is no quality standards, no desire to personally do anything except have your children be accepted into the Communist party."
Accepted into the Communist party? Listening to the news reports you get the impression China has discarded its Communist beliefs and has become "capitalistic."
"Nothing could be further from the truth," insists Grant. "The shining moment for parents is when their children pass first grade. Those that show the proper learning skills of the government teachings are formally accepted into the Party by the second grade class who proudly tie red scarfs around the successful first graders. Without getting accepted into the Party, prospects for a job are minimal, prospects for being able to avoid demeaning, menial careers are minimal and prospects for their parents are also jeopardized."
But, "That's China."
In China, the successful are those who draw no attention to themselves. "They liken any difference to being a nail sticking out of a board. Authority (the state) will hammer that which is different and society will shun them so it doesn't get hammered as well."
Well, that is one we don't have to worry about, Obama is bringing that to our doorstep daily. All you have to do is realize the Tea Party targeting, the passes given to the Justice Department, Homeland Security, Health and Human Services and those belonging to unions or the Islam religion for excesses, and the usurpation of Congress by a deluge of Executive Orders is putting Americans who think independently and different in a bind--legally, taxably and economically; just like China is already imposing.
Grant purchased some items in China--a purse, blouses, phone. The purse strap came undone within 10 days, the clothing disintegrated during the first washing and the phone didn't work. "That's China!" 
"They have two stores for everything--one for China and one for foreigners. While there are no standards you quickly learn to pay the higher prices at the foreigner shop because the items are of better quality. The locals do not have that 'luxury'. Wages are so poor they can't afford the marginally higher prices."
Here Grant took a moment to reflect before continuing. "It is because the incentive do anything better is missing. Everything is regimented--everything. We took our trays after the first meal and dumped the napkins and paper wrappings into the trash basket. We were told 'Don't do that, you are taking someone's job.' They have all these people who have no other way to support themselves other than sweeping highways with brooms or dumping waste or whatever menial job they've been assigned."
How vast a gulf there is between China and the U.S. was readily apparent on the streets to Grant. "They have the same lane markings we have here. The difference is here you can be stopped for not maintaining a lane, in China the lane markings are a suggestion. That's because they really do not have local civilian authority. They put cardboard cars with flashing lights in place of real police vehicles. People know this. It is the one way they have to flaunt some independence."
But, "That's China!"
The single most important lesson Grant learned was in restaurants there are two kinds of receipts. With one, the restaurant gets to keep the entire transaction, with the other the restaurant keeps a smaller portion and gives you lottery tickets. Same meal but the business establishment receives less money.
"By getting the lottery tickets they are supporting the state. They think this is a good deal for them. They think the state-support helps them."
That's a mind-set difference which most Americans cannot bridge. We do everything we can to make sure every dollar we can legally keep is kept come tax time. To the Chinese it doesn't matter because they know the state already owns everything--including the people.
But, "That's China!"
FYI: The "That's China!" is the saying they have in China whenever something doesn't work out like it is supposed to. The people know things should be better because the "Unalienable Rights" delinated in our Constitution belong to them as well. But they live under a government that has usurped those rights.
If we continue to allow our government to continue on the path outlined by the Progressives, our Prosperity will be saying, "That's America!" China is not the answer to any of the economic problems facing America today.
"I have sworn on the altar of God eternal hostility to every form of tyranny over the mind of man."--Thomas Jefferson

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