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 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.
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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