Comparing India and China’s Potential for Economic Growth

December 30, 2011

The cover for The Economist of October 2 – 8, 2010, placed a bet on India in an economic race with China.

The Economist wants India to win this race, because India is a democracy as is the U.S., but what isn’t mentioned is that China is evolving into a republic closer to the original republic that the United States was in 1776 with a Chinese twist, which is what Dr. Sun Yat-sen wanted.

Some claim China is ruled be a dictator today but that is not true. China is a republic that is guided by the word of law, which is the essence of a Republic.  In 1982, China wrote a new Constitution that spelled out the law and China’s schoolchildren are taught what these laws mean and how to live with them. However, the Chinese Constitution is not the same as the one in the US, so the laws are different.

I opened The Economist magazine and read the two pieces the cover was about. One was India’s surprising economic miracle and the second piece was A bumpier but freer road.

On page 11, I read, “many observers think China has done a better job than India of curbing corruption…”

On page 77, a Western banker was quoted saying, “It’s much easier to deal with the well-understood ‘organization chart’ of China Inc than the freewheeling chaos of India.”

Corruption exists in every country and Transparency International attempts to define and identify what global corruption looks like. Comparing China and India, we discover that while India’s corruption appears to be getting worse, corruption in China is improving due to the evolution of its new legal system.

In fact, in the past 3 years, the perception of corruption in India was 74%, [in the United States that perception was 72%], while in China it was only 46%.

In addition, the BBC reported recently, “Widespread corruption in India costs billions of dollars and threatens to derail the country’s growth…”

After I read both pieces in The Economist comparing China with India, it was obvious that India would never beat China economically without controlling its corruption, shrinking severe poverty and increasing literacy. Overall, the latest World Bank data shows that India’s poverty rate is 27.5% [330 million people], based on India’s current poverty line of $1.03 per person per day and an illiteracy rate of almost 26% [312 million people].

In comparison, literacy in China is more than 94% and the World Bank says in 2004, people in China living in poverty represented 2.8% of the population.

There are more reasons The Economist is wrong about India winning this economic race just because it is a democracy. One reason is that America’s Founding Fathers hated democracy and had a good reason.

Live Journal goes into detail on this topic. Live Journal says, “It would be an understatement to say that the (U.S.) Founding Fathers hated democracy. They warned against it vehemently and relentlessly. They equated it–properly–with mob rule.”

 

The Founders of the US, who hated democracy, built a free country [a republic]. Our [meaning many Americans] ignorance of history, which has led to a love of democracy, is causing the US to surrender its freedoms at an alarming rate.

Dr. Sun Yat-sen (1866 – 1925), known as the father of modern China [by both China and Taiwan], said he wanted to model China’s government after America but by combining Western thought with Chinese tradition.

When he said this, it was 1910, and America, by definition, was still a republic. Once you read the two pieces in The Economist, you may understand why India’s democracy cannot beat China’s growing republic.

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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 This revised and edited post first appeared October 13, 2010.

8 Comments | China, Communism, democracy, economy, government, India, legal system, politics | Tagged: , , , , , , , , , , , , , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

America’s Lost Work Ethic and the End of its global Exceptionalism – Part 5/5

December 13, 2011

The educational system and labor market in China are based on merit, while in the United States, the emphasis is on self-esteem and feeling good about oneself.  In America, merit is not important and the happiness of the individual is.

In China, those that work harder and do a better job, regardless of self-esteem or happiness, tend to prosper. in fact, Asian-Americans have the lowest self esteem in the United States.

Gallup studied China’s work ethics. Not surprisingly, the credo “work hard and get rich” is by far the most popular choice, selected by 53% of respondents. About one in four Chinese (26%) opt for “don’t think about money or fame, just lead a life that suits your own tastes,” while less than a tenth of Chinese identify with all the other responses. Perhaps most telling: Only 2% of Chinese choose the collectivist exhortation to “never think of yourself, give everything in service to society.”

In short, it would appear that the country’s commitment to material self-betterment through hard work is firmly rooted and unchallenged.

However, in the United States, a Yahoo.com, ABC News Piece said, “Between 1979 – 2007, the income of the top 1% of Americans increased by 275%. For the other 99% of the population, income only increased 29%.”

The problem is that when prices of everyday items such as food goes up due to inflation, many people cannot afford to buy them. In addition, equity in homes, where most of middle class wealth is, lost value.


Chinese Education: Social Life and Work Ethic

  Studies also show that countries that have a large income gap such as the US, also have high numbers of unemployed, incarceration, teen pregnancy, poor health and lower life expectancy. It may not surprise you that Chinese-Americans [including all Asian-Americans] have the lowest teen pregnancy rate too.

In fact, prison inmates by race breaks down to about: African-American 39.4%, White 33%, Latino-Hispanic 20.6%,  and Asian-American 1.7%.

That’s right. For Asians it was one “point” seven percent [1.7%] and Asian-Americans graduate from high school and college in the highest ratios.

In addition, the King’s College of London’s World Prison Population List reports, “The United States has the highest prison population rate in the world,” while China doesn’t even make the top sixteen list.

The US has about 2.3 million people behind bars at 756 per 100,000 people, and China has 1.56 million at 119 per 100,000.

Since the lack of an education often lands Americans in prison, low paying jobs or unemployed, one would think that working hard to earn an education would be popular in the US, but it isn’t. Instead, in the US, it is the old blame game. “It’s the teacher’s fault I earned a failing grade or the class was boring.”

It does not matter if the child does not do homework, study for tests or hates to read [because it gets in the way of video games, Facebook or TV], it’s still the teacher’s fault. However, in China, it is seldom the teacher’s fault and parents often take all or most of the blame for a child’s failure in school.

The Wall Street Journal in From College Major to Career says, “Choosing the right college major can make a big difference in students’ career prospects, in terms of employment and pay… Some popular majors, such as nursing and finance, do particularly well, with unemployment under 5% and high salaries during the course of their careers.”

In addition, the attitude of America’s Baby Boomers is not much better than the children they raised that are now having trouble finding jobs because they did not take earning an education seriously as most Asian-Americans do.

The next question should be, “How long will the United States hold onto global super-power status with attitudes such as these?”

Return to America’s Lost Work Ethic and the End of its global Exceptionalism – Part 4 or start with Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Posted by Lloyd Lofthouse

America’s Lost Work Ethic and the End of its global Exceptionalism – Part 4/5

December 12, 2011

“What are these jobs that Americans will not do?” Slate.com asked. “Do they exist or are they a figment of the business community’s imagination? It turns out that their claims are largely true—there are plenty of jobs Americans avoid.


Manufacturers Looking for Skilled Workers

Let’s take a tour of them.

“Americans shun pretty much any unskilled labor that requires them to get their hands dirty: landscaping, entry-level construction, picking fruits and vegetables (Reuters reports that “up to 70 percent of U.S. farm workers are estimated to be undocumented, totaling about 500,000 people”), cleaning hotel rooms, busing tables, and prep cooking in urban restaurants,” and “American workers appear to be less interested in some kinds of factory jobs.”

In addition, “Americans, it seems, are also less willing to take stressful jobs that require lots of training and long hours, and that require them to work in unpleasant environments…”

For example, “The American Hospital Association says there are 118,000 nursing vacancies in the United States.”

In fact, the Washington Business Journal reported October 2011, “U.S. manufacturing companies have as many as 600,000 jobs that they cannot find workers with the proper skills to fill, according to a survey by Deloitte and the Manufacturing Institute.”


What the American Self-Esteem Boosting Parenting Movement did to the US – Did your child have fun today by skipping homework and avoid reading a book?

The survey found 5 percent of current manufacturing jobs are unfilled due to lack of qualified candidates, 67 percent of manufacturers have a moderate to severe shortage of qualified workers, and 56 percent expect the shortage to increase in the next three to five years.

What about China? Do the Chinese have a similar attitude?

Continued on December 13, 2011 in America’s Lost Work Ethic and the End of its global Exceptionalism – Part 5 or return to Part 3

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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4 Comments | America, American culture, business, capitalism, China, Chinese Culture, cultural differences, economy, education, family values | Tagged: , , , , , , , , , , | Permalink
Posted by Lloyd Lofthouse

America’s Lost Work Ethic and the End of its global Exceptionalism – Part 3/5

December 11, 2011

DailyKos.com says, “American’s won’t work 12 hour days , $5 an hour for seven days a week.”

However, many Chinese will and they will work more than one job while saving between 30 to 50 percent of what they earn while sacrificing sleep.

However, in 1973 after graduating from college on the GI Bill (working nights and weekends), my first job was working 12 or more hours a day sometimes six and seven days a week on a salary without overtime.

Change.org says, “Despite high unemployment, Americans won’t work as farmhands. Have you ever read John Steinbeck’s Of Mice and Men, which is about two caucasion drifters working as farmhands moving from farm to farm to survive? at 112 pages, it is a small book and I recommend it.

The Center for Immigration Statistics tells us what the jobs are that educated Americans won’t work at. CIS says, “Of the 465 civilian occupations, only four are majority immigrant. These four occupations account for less than 1 percent of the total U.S. workforce. Moreover, native-born Americans comprise 47 percent of workers in these occupations.

“These high-immigrant occupations are primarily, but not exclusively, lower-wage jobs that require relatively little formal education.

“In high-immigrant occupations, 57 percent of natives have no more than a high school education. In occupations that are less than 20 percent immigrant, 35 percent of natives have no more than a high school education. And in occupations that are less than 10 percent immigrant, only 26 percent of natives have no more than a high school education.”

With no choice, American born citizens will work jobs most educated Americans refuse to do.

In fact, in October 2011, the New York Times reported about a Colorado farmer that decided to hire locally unemployed Americans instead of immigrant labor.  It took the farmer six hours to learn he had made a mistake.  At lunchtime, the first wave of local workers quit and never came back. Some of the workers said the work was too hard.

Since Chinese value education and work harder than most to earn one, they tend to stay in school longer.  In fact, Asian-Americans  had the lowest unemployment rate of all ethnicities. In 2010, 12.5% of Hispanic or Latino, 10% of African-Americans , 8.7% of Whites but only 7.5% of Asian-Americans were unemployed.

Continued on December 12, 2011 in America’s Lost Work Ethic and the End of its global Exceptionalism – Part 4 or return to Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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America’s Lost Work Ethic and the End of its global Exceptionalism – Part 2/5

December 10, 2011

My parents generation is the one John Steinbeck wrote of in Cannery Row. One review says, “The novel depicts the characters as survivors, and being a survivor is essentially what life is all about.” The same theme permeates Steinbeck’s The Grapes of Wrath and Of Mice
and Men.

However, today, many Americans have forgotten the sacrifice it takes to survive and expects government to bail them out.

My father, at 14, was mucking out horse stalls at Santa Anita Race Track in Arcadia, California—the sort of work immigrants do today.


It started in America and swept around the globe!

My mother worked in a laundry and at home, she baked and decorated cakes for special occasions that she sold to neighbors, co-workers, friends and family.

My older brother worked most of his life until the day he died at 64 in 1999 working the jobs that immigrants do.  When he didn’t have work, he spent his days going to dumpsters looking for cardboard and searching the roadsides for empty soda cans and beer bottles to sell at the local recycling place.

Richard, my brother, “once” told me shortly before his death that he was proud he never collected a welfare check or depended on government handouts. The Latinos he worked with called him The Horse, “El Caballo”, due to his strength.

When I was fifteen, I went to school during the day and worked nights and weekends [30 hours a week] washing dishes in a coffee shop often until 11:00 PM only to be at high school the next day by 8 AM.

After a few years in the US Marines and a tour in Vietnam, I washed cars, swept floors and then bagged groceries in a super market while I attended college on the GI Bill.

One summer job before my fourth year of college had me cleaning empty 50,000 gallon stainless-steel tanks at the Gallo Winery in Modesto, California. It was a dangerous job cleaning out the tanks where the wine was fermented, and I witnessed fellow workers injured and rushed to the hospital.

However, the generation that won World War II and made America strong and powerful is mostly gone or retired. Today, the work ethic in America has changed.  The reason it changed has a lot to do with the way children have been raised since the 1960s by parents obsessed with their children’s self-esteem and happiness, while making sure these children never face a boring day and blaming teachers for the child’s bad grades instead of holding the child responsible.


Unfilled jobs due to skills gap

Since 1960, the US has not won a single war.  After more than a decade and about 50,000 dead, we lost in Vietnam. Today, after another decade at war, we are still fighting in Iraq and Afghanistan with no victory in sight.

It’s as if today’s younger generation is incapable of making the sacrifices the Great Depression (1929 – 1942) generation did when 25% of all workers were completely out of work. Some people starved and many lost farms and homes.

However, I’ve met Chinese immigrants willing to do the same work for the same low pay that Latino immigrants from south of the border do and often charge less while saving money to put their children through college.  It’s called sacrifice.

Continued on December 11, 2011 in America’s Lost Work Ethic and the End of its global Exceptionalism – Part 3 or return to Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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