Why we must beware American senescence

Sometime in the next five years, the Chinese economy will overtake that the United States.  China’s workforce may already have peaked but still has surplus labour in the 25 per cent of people working in agriculture, a share that is likely to fall to under 5 per cent.  Savings, the engine of growth, as a share of China’s GDP remain well in excess of 40 per cent – twice that of the US (and Australia). 

By 2030, the Chinese economy, even if its growth rate falls to 5.5 per cent, will be 15 per cent greater than the US.  The US will see its growth rate stagnate to below 1.5 per cent under a Democratic Administration seeking income redistribution, diversion of capital to unproductive venues like renewable energy, allocating vast…

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