Can we finally write off neoliberalism as a bad idea? Due to alterations in how the World Bank calculates wealth China is set to surpass the United States as the world’s largest economy this year. Previous predictions imagined China overtaking the US in the next decade.
While America’s once robust middle class shrivels and opportunity for advancement diminishes, China has handsomely profited off the misery by manufacturing the goods sold at transnational corporations like Walmart.
Apparently free trade and unregulated financial markets leads to weakness, stagnation, and inequality. Who knew?
In 2005, the ICP thought China’s economy was less than half the size of the US, accounting for only 43 per cent of America’s total. Because of the new methodology – and the fact that China’s economy has grown much more quickly – the research placed China’s GDP at 87 per cent of the US in 2011…
With the IMF expecting China’s economy to have grown 24 per cent between 2011 and 2014 while the US is expected to expand only 7.6 per cent, China is likely to overtake the US this year.
Then again, why should the American oligarchs care?
The Walton family became multi-billionaires off China. Much of Wall Street has investments in the country. The only losers are the average American workers and consumers who are watching their job opportunities and purchasing power decline.
Though it does make the TPP and “Pivot to Asia” strategy interesting. Build China up just to contain it? Or is the real goal for America to become more like China by suspending democracy and letting special interests rule? We already have the oligarchy.