China became a communist country with Mao Tze Tung at its head in 1949.
In the early 50′s private ownership of almost everything, especially land, housing and means of production was taken from private hands and became owned/administered by the government. It was illegal for private people to trade and the essentials-food and clothing-were rationed by the state(so every one was equal).Employment and places of residence were allocated by the government.
The net result of this was widespread starvation and privation of the normal people.
This lasted until 1976, the year of Mao’s death.
Almost immediately after, the Chinese government began to relax from the strict communism imposed by Mao. Most importantly, the government recognised the virtues of the free market and divested itself from the means of production.These things including heavy industry were encouraged into private hands.
From this point on the Chinese economy has grown exponetially, and as I said has now out stripped the US.

Now I am puzzled about your comment “we imported from them but they did not reciprocate at all ”
As an economist, I cannot see how that could possibly harm the US economy. Its true that cheaper goods might out compete less efficient US companies, but on the other hand the US consumer benefitted from the less expensive goods.

If you want to blame the US government about “allowing them to take over our industries” there is some truth in that, The point in my first comment is that government interference in the open market will not help industry at all and cause distortions and declines. Its true that unions to essentially the same thing in the economic sense.

“I do agree with the fact they have learned how to deny themselves something Americans do not know how to do. But that is changing too and if the world continues they will eventually go the way of the world the more you get the more you want and the less you are willing to give up.”

Yes the Chinese certainly learnt to deny themselves in a big way, but I guarantee that not one of them enjoyed starving one bit. This brings me back to the point of my first comment. The average chinese person is the same as you and me, or at least me and most people in the world.
They want to eat adequately, they like to dress nicely, they like to have a reasonable place to live. In other words they are exactly like americans and (or should I say except) each individual is happy to work to attain these things.
This is the point about the free market. The american government is progressively closing down the free market, the chinese government is embracing it.
So what is happening? China is springing from horrendous poverty to a reasonable standard of living for its individuals by using the free market. A lesson well learned from those terrible years from 1949.
In the mean time the US government is steadily doing the opposite and then wondering why the US economy is declining?
Get the point?
Its nothing to do with self denial! Socialism causes poverty. History tells us so.
My point and that of Paul Ryan is that rising taxation esp by your current governent slides you into what the chinese are escaping from.

Where is the US citizen’s spirit gone?
You should be striving to get the government out of your lives and have the right to make or break your own destiny.

Cheers

Roger

You are partly right the other half of the equasion is that we imported from them but they did not reciprocate at all and that is why we have always been on the short end of the stick. We imported from them to the maximum and they limited our exports to the absolute minimum, sonsequently the balance of trade fell heavily in their direction. It has always been that way since Mao came into power and the world opened up the doors to them.

Not only that but we allowed them to take over our industries thanks to our government and th unions like the steel industry etc. They bought our debt with our money and while they inclined we declined.

I do agree with the fact they have learned how to deny themselves something Americans do not know how to do. But that is changing too and if the world continues they will eventually go the way of the world the more you get the more you want and the less you are willing to give up.

Keeping the faith and praying for all.

The Peoples Republic of China, who nowadays is communist only in name, is becoming the new economic world powerhouse!

Why?
Because the spent 50 years starving because the free market was totally and artificially repressed.
They have learnt the lesson the hard way!
Today China has embraced the free market like no other country except the US in the 19th century. And look what is happening! The Chinese economy has surpassed the US economy already and they are not even half done yet!
If you mention the words “State owned industry” or “government controlled market” to an educated modern chinese citizen today you will get a look of horror back in return.

I hope my country and the US will learn from this.

Cheers

Roger

http://www.rogerfromnewzealand.wordpress.com