Scott Sumner, the monetarist economist blogger, Money Illusion, has some interesting comments about China. First, it has approximately the same population as North America, South and Central America, Western Europe and Australia/New Zealand combined. That's big. One interesting example of how the importance of size can be ignored is the following. Most developing countries fell further behind the developed countries since 1970. But most people saw their incomes rise faster in the developing world. Yet entities, like the IMF, for example, continue to prop up corrupt Governments in the 3rd world. China has dozens of spoken languages, although only one written language. Hong Kong and the Pearl River delta, Shanghai and the Yangtze River delta, and the Beijing-Tianjin corridor are the boom areas. Sumner believes using purchasing power parity estimates, it is possible China's economy is already equal in size to the US. In "nominal terms", i.e., that which is measured in dollars, they are about 30% the size of the US. But comparable things cost a third as much in dollars, on average. They have low tax rates and generally encourage growth. Sort of what we used to do.
(posted at 5:30 pm by Mike Rulle)
Do we need a Federal Reserve? George Selgin thinks not End the Fed? A Not-So-Crazy Idea . This will never happen. But as Selgin points out, there are some good reasons for eliminating it. The U.S. Federal Reserve is reflected in a car as a security officer patrols the front of the building
(posted at 3:30 pm by Mike Rulle)
(Photo: Albert Watson)
(posted at 3:00 pm by Mike Rulle)