China's decision in 1978 to pursue free trade and
capitalism has unleashed an entrepreneurial energy unparalled in world
history. China's economy is growing faster than any other economy in the
world. And its growth is a beacon that raises the tide for much of the
rest of the worlds' economies which would otherwise languish. America's
entrepreneurs, like all others in the world, are elbowing each other for
a share of the phenomenal trade pie created by this spectacular growth.
China's emergence as an economic force to be reckoned
with could well be the alarm bell in the White House and Congress which
would end the bitter squabbles over budget deficits, outsourcing of
jobs, and rancor over tax policy. They should turn their attention to
the real culprit that ails the American economy -- supporting research
and technological innovation that drives productivity growth. The left
and right wing ideologues that dominated the elections drown out the
extraordinary productivity gains we have witnessed in America's recent
recovery from recession.
China's phenomenal 9% growth in GDP throws down a
gauntlet for the U.S. if its economy is to meet China's challenge. Also,
India has moved up to tenth place in the world's fastest growing
economies and adds yet further incentive for America in its drive to
continue to grow productivity in order to sustain its leadership on the
world's economic center-stage.
To do that, America's two political parties must form a
coalition to solve healthcare policies that hamper corporate enterprise
and competitiveness and education policies that hamper the workforce.
Both of these impediments are major factors in continuing to accelerate
productivity growth and GDP. The U.S. economy grew 4.9% in 2003, the
largest gain since 1984. Consumer spending is up 9% since 2000. China's
booming economy now becomes America's main economic competition to
maintaining economic dominance.
