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I agree on most points, except for|
5. “America is unthreatened by China's growth.”
A “prayer” by US Secretary of State Hillary Clinton, Rothkopf says. “It should be true. But it's not,” he adds.
American politicians are actually trying to make their people believe that China's growth IS a thread to the US, while it actually is not - at least not economically (perhaps in terms of military strategics, which I am not an expert in). China's growth, in contrary, helps to
a) keep prices low in the US thanks to the myriads of cheap workers
b) help the US government to pay for it spendings while having very low interest rates
c) upgrades the jobs in the US as more developers and less cheap workers are needed
d) opens a new market for US companies where over a billion people buy things
The USA hugly profited from China's growth so far. China is not the reason for the financial crisis, it's the US politician's fault.
And for those who still don't get it: more people working will produce more things.
The only ones who lose in the short term are uneducated american workers, because their jobs are moved to China, thus their salaries shrink. But in the long term, even they profit as technology advances faster and faster.
The second point I don't agree on is
7. “Cutting the taxes of millionaires helps create US jobs.”
There is not even one single solitary shred of evidence to support this “idiotic” suggestion, Rothkopf notes.
Investments creat jobs. Millionaires invest, middle-class and working-class people consume. There is strong empiric evidence to support tax cuts for millionaires to create jobs.
However, this is only true if the government actually doesn't run a budget deficit due to the tax cuts - and recently, the US government always cut taxes whilst having a budget deficit, which isn't that smart. It only pays off because China bought US government bonds - but as it doesn't do so now anymore, tax cuts don't pay off at this very moment.
Rothkopf actually just makes Obama-propaganda, he doesn't really adress the country's issues. So there's business as usual in Washington...