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    Elizabeth Warren apparently never heard of the Chinese bubble and Stimulus

    Elizabeth Warren apparently never heard of the Chinese bubble and Stimulus

    Elizabeth Warren is punching back against her own embarrassing “no one got rich on his own” rant and Scott Brown’s devastating viral (350k+ 800k views) video.

    Warren is doing so by insisting that we need to catch up with China on infrastructure spending.

    Warren’s campaign just released this ad:

    Warren has just demonstrated how clueless she is and how she is unable to look beyond government-spending talking points.

    China started from a much lower point of development, so it has to spend more on infrastructure just to catch up.

    China’s massive spending on infrastructure, intertwined with real estate construction, also has created a bubble of cities without people and bullet trains with no riders:

    China is rife with overinvestment in physical capital, infrastructure, and property. To a visitor, this is evident in sleek but empty airports and bullet trains (which will reduce the need for the 45 planned airports), highways to nowhere, thousands of colossal new central and provincial government buildings, ghost towns, and brand-new aluminum smelters kept closed to prevent global prices from plunging.

    The Chinese government is trying to manage the bubble:

    Moreover, in 2008, a nearly trillion yuan stimulus program had developers building up China residential properties in hopes that the urban trend would spike.  They built, but the people didn’t always come.  While the urban trend remains in place, many of those properties remain vacant, either as unsold developments or as investment properties without anyone living there.

    We also saw in the 2009 Stimulus Plan in the United States how funding infrastructure projects for the sake of funding infrastructure projects led to wasteful projects like sidewalk reconstruction.

    Warren’s answer to everything is to throw more government money at it.  How’s that working out for us?

    Elizabeth Warren may think she’s punching back, but she’s actually just shooting herself in the foot, once again.

    Update:  From Todd at WRKO Boston:

    In her new ad, Liz Warren complains that China is investing 9% of its GDP in infrastructure while our spending is running at around 2.4%. My rule of thumb is that whenever politicians are offerings statistics, there’s little truth to what they’re saying. The Warren campaign isn’t breaking the pattern.

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    Matelot | July 28, 2012 at 10:20 am

    As a proud “Native-American” or the term “indian” that Ms Warren prefers, I would like to see this Blonde, blue-eyed “Indian” do more to help her “people” get off the reservations and take their proper place in society. But, during her tenure as Harvard’s only “Native-American” or as she prefers “Indian”, she never once attended one of Harvard’s 17 annual Native-American Pow-Wows. I guess once Harvard certified her claim as a Native, based on what her batty old auntie told her, there was no more need to flaunt her “heritage”.

    […] So do we have the beginnings of the new Democrat Party campaign slogan here? How about: “Vote for us and we’ll make America like Communist China”. Frightening stuff from the Democrats these days. More on how absurd Warren is from Legal Insurrection. […]


     
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    USPatriot | July 31, 2012 at 9:25 am

    This guy gives a different perspective to your article and talks about the American highway system and how it spurred economic growth and continues to add to the economy http://www.usaprogressive.com/2012/07/legal-insurrection-blogger-will.html

    […] The Dime Store Indian whining about how we spend so little on infrastructure and China spends so muc… […]


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