Chinese Economics Thread

[Nutrient]

What makes you think rich people don’t invest? Besides a lot of the wealth is from shares of stocks.

Private investeors tend to be completely short-term and profit-oriented. While that is fine in certain situations, there also needs to be a longer-term, strategic actor.

For example, I very much doubt that private interests would ever have funded China's high-speed rail network. The huge improvement in connectivity will benefit the country greatly in the long run, but it would not have happened if billionaires were solely responsible for the country's economic development. We know this because the US's overwhelmingly private economy has built exactly zero miles of HSR.

Some billionaires are fine, but in my opinion they must never be allowed to dominate the government. The billionaires' short-term and selfish outlook would neglect the country's infrastructure -- as has happened in the US.

 

[KYli]

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[KYli]

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[ansy1968]

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@KYli Ahhhh!!!WSJ, can't admit that China is doing well, there is always a caveat....LOL

 

[AndrewS]

Private investeors tend to be completely short-term and profit-oriented. While that is fine in certain situations, there also needs to be a longer-term, strategic actor.

For example, I very much doubt that private interests would ever have funded China's high-speed rail network. The huge improvement in connectivity will benefit the country greatly in the long run, but it would not have happened if billionaires were solely responsible for the country's economic development. We know this because the US's overwhelmingly private economy has built exactly zero miles of HSR.

Some billionaires are fine, but in my opinion they must never be allowed to dominate the government. The billionaires' short-term and selfish outlook would neglect the country's infrastructure -- as has happened in the US.

Yes, suppose you have:

1. a project financial return of -1% per year
2. but a broader gain to society of 10% per year

There won't be any private funding available

 

[kentchang]

Yes, suppose you have:

1. a project financial return of -1% per year
2. but a broader gain to society of 10% per year

There won't be any private funding available

Private companies get involved with financially unviable projects all the time for many good reasons. It can be as simple as good-will/corporate image. Tax credit/abatement/easement can be huge incentives to the corporation.

 

[Bellum_Romanum]

Private companies get involved with financially unviable projects all the time for many good reasons. It can be as simple as good-will/corporate image. Tax credit/abatement/easement can be huge incentives to the corporation.

Show any examples of these so called unviable projects that private companies have been involved with to see if reality matches the rhetoric.

The modern digital age that we all are using and have benefited from didn't come from the investments of the benevolent billionaire class period. The infrastructures like the G.P.S. internet, and even social media giant like Facebook were made possible by the U.S. government investments, namely in their defense sector which spawn the tech of today harnessed by their people's entrepreneurial can do attitudes.

 

[AndrewS]

Private companies get involved with financially unviable projects all the time for many good reasons. It can be as simple as good-will/corporate image. Tax credit/abatement/easement can be huge incentives to the corporation.

The context was the build out of the Chinese High Speed rail system.

How many companies would spend billions on these low-profitability projects?

 

[styx]

@KYli Ahhhh!!!WSJ, can't admit that China is doing well, there is always a caveat....LOL

they are ridicolous. That's a supposedly serious financial newspaper not a bullshit english tabloid like "the sun" or "daily mail"! China was right on banning their reporters.

 

[styx]

china economy is of continental scale, think that it has more inhabitants than USA EUROPE AUSTRALIA KOREA AND JAPAN together. It's simply impossible to have a big economic crisis of all china provinces together. Lool at europe: some countries are crushed by gdp fall (italy, britain, spain...) other are less battered (germany netherland france...). Biggest is the economy biggest is the resilience.