Comments on: China Overdrive http://thisischinablog.com/2009/12/02/china-overdrive/ The trends reshaping China society, economics and business Mon, 14 Nov 2011 07:22:47 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: outcast http://thisischinablog.com/2009/12/02/china-overdrive/comment-page-1/#comment-913 outcast Fri, 04 Dec 2009 15:15:29 +0000 http://thisischinablog.com/?p=1257#comment-913 Addendum: I think something the economist may not have taken into account is the urbanization rate is only about 50%, so only about half the country produces anything of real value. As long as people move to the cities, productivity will continue to increase, IMO. Addendum: I think something the economist may not have taken into account is the urbanization rate is only about 50%, so only about half the country produces anything of real value. As long as people move to the cities, productivity will continue to increase, IMO.

]]> By: outcast http://thisischinablog.com/2009/12/02/china-overdrive/comment-page-1/#comment-912 outcast Fri, 04 Dec 2009 15:12:31 +0000 http://thisischinablog.com/?p=1257#comment-912 Then again isn't the purpose of those big projects not to absorb surplus labor but rather to build up that infrastructure while labor costs are still low? Building large amounts of infrastructure in developed countries is hugely expensive, mainly because of labor costs. Then again isn’t the purpose of those big projects not to absorb surplus labor but rather to build up that infrastructure while labor costs are still low?

Building large amounts of infrastructure in developed countries is hugely expensive, mainly because of labor costs.

]]> By: Bill :D http://thisischinablog.com/2009/12/02/china-overdrive/comment-page-1/#comment-896 Bill :D Thu, 03 Dec 2009 06:59:31 +0000 http://thisischinablog.com/?p=1257#comment-896 Hi, Outcast; I think the point the author of the Economist article was trying to make was that more needed to be done to bolster a services sector: so much of the governance and financing structures still lean overwhelmingly to the big concrete-and-steel projects that cannot effectively and sustainably absorb excess labor in the market. Meanwhile, urbanization and establishing economies of scale to support the population needs continued infrastructure development, at least for the next fifteen to twenty years. Hi, Outcast;
I think the point the author of the Economist article was trying to make was that more needed to be done to bolster a services sector: so much of the governance and financing structures still lean overwhelmingly to the big concrete-and-steel projects that cannot effectively and sustainably absorb excess labor in the market. Meanwhile, urbanization and establishing economies of scale to support the population needs continued infrastructure development, at least for the next fifteen to twenty years.

]]> By: outcast http://thisischinablog.com/2009/12/02/china-overdrive/comment-page-1/#comment-888 outcast Wed, 02 Dec 2009 15:06:45 +0000 http://thisischinablog.com/?p=1257#comment-888 "and that it needs to facilitate the migration of the population from a rural to an urban setting in order to keep its TFP at astronomic levels." I believe it has been doing that for several decades now, and it will continue to happen. But without additional infrastructure to accomodate future economic expansion, how can those people be truely facilitated? “and that it needs to facilitate the migration of the population from a rural to an urban setting in order to keep its TFP at astronomic levels.”

I believe it has been doing that for several decades now, and it will continue to happen. But without additional infrastructure to accomodate future economic expansion, how can those people be truely facilitated?

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