No Panic: China Economic Model not for USA.... Precisely!!

There is the classic panic reaction, some pundits in the media and other seemingly well meaning prominent and media-visible Americans, to issues that do not lend themselves to simplistic analyses based on scanty data; and most times seem incredibly naive and parochial in their presentation A lot of issues come to mind, but with the visit of the President of China to the USA, I must at this time consider the so-called economic status decline of the US in relation to that of China. What is the basis for this baseless panic?

I surmise the same question applies to other instances of recent political events. Remember the November 2010 congressional elections, where the Republicans posing as Tea Party activists were successful in creating panic, overstated fear and despair in the electorate, to the extent of inventing baseless but effective enthusiasm for the Republican party, and acute dissatisfaction and heightened paralyses and inaction, on the Democratic party. I call that situation brilliant in the political realm, but very destructive for the progress of our Constitutionally Framed Government, which demands a good outcome for the welfare of the US society at large. How is that relevant to the subject matter?

Is anyone involved and/or interested in the subject matter, but embarking on China bashing and raising the Panic Alarm volume of Disdain, Finger Pointing, and Blame Assigning, paying attention to the fact that China is a large Developing Country compared to our USA, the most Developed Country on this Planet [Earth]! It is important for a level of self introspection and a heavy dose of reality check.

US as the most developed country is the leader and trend setter for other countries to follow especially the developing countries, China being one of the largest developing nations. To underscore this claim I make, the President of China Hu Jintau himself made that statement during the joint news conference with our President Obama on January 19, 2011 [Check the Joint New Conference communique / transcripts]. Furthermore, developing countries [China] have the luxury of acquiring and adopting the benefits of the achievements of developed countries, including but not limited to advanced technology development and deployment.

In other words, developing nations, notably China, have had and continue to have the unmitigated advantage of: Imitation, Adoption and Adaptation, and No or Low Risk implementation and deployment of the Benefits of already developed infrastructure of well developed economies, USA leading the pack.

We should all be aware of the developed nature of USA in relation to other countries, and appreciate the collective connotation of the term of developed Economic and Political Infrastructure. Our technological advancement and production capacity permeating our entire economic infrastructure, is still legendary and continues to lead the world, and our Constitutionally Framed Government, the basis of our envied political system, is still fascinating for its effectiveness, malleability, organic nature, forward looking in concept, and structured-in complexities of implementation, that is truly USA! Enough already with the Panic mongering and baseless 'doomsday' mantra of US decline, that shakes my calm demeanor into controlled disgust with the faithless prognosticators! USA is NOT in decline, and I will bet my life USA will NEVER be in decline!!

To the Panicking pundits, the seemingly slowness for change and progress in the US economic and political infrastructure, the observed inertia, is a critical component of the representative government, a deliberately engineered feature for our constitutionally framed government. The rest of us, forward looking optimists, the introspection I call for, should consider these tenets of a developing country, in this writing, I use China, because of the obvious current economic focus.

I have already mentioned the benefits of the almost risk free and low investment cost for late adopter Countries, now lets look at the reason China, in the eyes and minds of the panic pundits, seems to be moving a head of US. The major reason, I assert, is the current prevailing Chinese Governmental and/or Political System, as a Blend of: Authoritarian, Dictatorial, Pseudo-Free Enterprise, and Pseudo-Representative Parliamentary System. Note that, I did not add the flavor of Constitutionally Framed Government [our cherished Free Enterprise/Capitalist Democracy] like the USA system, as one of the listed. There lies the difference, in addition to the markedly non-mature nature of the current Chinese political system.

Within the context of an evolving but firmly rooted one party Chinese government, consider these observations:

1. There is practically No Opposition [No Limitation, No Required Referendum, No Required Political Concurrence] on the Economic Policies and Direction the Chinese government chooses for their country. In other words, economic activity deemed necessary by the Chinese government will be [is] undertaken without fanfare and opposition. Thus, in China, Progressive Economic Policies and Investments, deemed necessary, will have unfettered support and unconstrained implementation. Unlike the USA which, in the current configuration of the government, has the Congress [the Legislative Branch] led by Speaker John Boehner and his Tea Party Republicans, opposed to any policy proposals from the President [the Executive Branch], irrespective of the positive impact or value to the nation [USA] at large. Most of the opposition in the USA are mere political grandstanding and score keeping. For example, the Republican Party and the Tea Party Republicans stood on the political sidelines in opposition to President Obama's policies for two (2) years, in order to gain political power, at the expense of any benefits for the nation's future. The seeming rapid and/or timely development activity of China, in certain sectors of economic activity can thus be partly explained. Think about it.
2. The critical foundation for economic emancipation, progressive economic development and guaranteed sustainability as such, require targeted investment in the Education Policy of government. The government of China, as has been well documented, has embarked on higher education as a required fortification for economic sustainability for its people. China has not adopted [or adapted] the You-Are-On-Your-Own Education Policy Model, that seems to be proposed and practiced in the USA, mostly advocated The Republicans and the Tea Party Republicans, who even go as far as wanting to leave the financing of education to the Free Market. Is it a wonder when we [USA] see our global education index decline? I read that in the last few years, China has invested in, and built more than fifteen [15+] M.I.T. type university equivalents to ensure that their educational investment output be among the leaders in the world. Remember this observation today, for future results. 
3. The solid foundations of economic activity and sustainability requires modernized Physical Infrastructure to support commerce, locally and globally. Physical Infrastructure includes: Highways, Water Ways, Aviation, Communication Networks, Internet, Broadband and Wireless Networks, etc. For example China is reportedly building super highways, bullet trains [200+ mph], expanded broadband network into rural population areas. Investment in physical infrastructure has not been a priority in the USA, and with vehement opposition from the Republicans and Tea Party Republicans a change in this policy is doubtful. Food for thought!

These observations encapsulate my early postmortem of what pundits, economists and social scientists may conclude in future analyses, but not to subscribe to the panic. Current economic data estimates the net asset value [total assets less total liabilities] of the US as being approximately three [3] times that of China. The USA, as should be expected, is still the leader for economic activity and throughput. I surmise that, with judicious management of resources, coupled with future leaning inspired leadership and well crafted governmental policies, added to efficient execution of private business activities and ingenuity, USA will continue to lead. No need to Panic, the China Economic Model is not suitable for the USA.... Precisely!!