Getting China Wrong August 25, 2008
Posted by taoist in Capitalism and Economics, Democrats, Politics.trackback
Neal noticed today what Obama said about China, and how wrong of a viewpoint it is. The reason companies are fleeing to China isn’t because of China’s infrastructure, which is significantly less developed than ours. They’re heading to China primarily for the tax and labor advantages. If America is to remain competitive the solution isn’t to raise taxes even further and spend more on infrastructure. The solution is to reduce (or eliminate!) corporate taxes.
Seriously, how does anyone go to any of Obama’s speeches and not just guffaw at his laughable positions?
Obama says we should build the infrastructure like China but forgets that China is able to do what they did only because labor is very very cheap. Architects are able to design and create projects that would be way too expensive here or anywhere else. Is he suggesting we eliminate the minimum wage or shut out unions so that we can afford to build these massive new projects? Probably not. As usual, he thinks all that is necessary is for the government to WILL it to be.