Giving dollars to China is precisely what we are already doing. China has bazillions of $ lying in their soveriegn wealth funds and foriegn currency reserves.
But some people have argued that the most important thing we give to china is not dollar notes, but a market for their goods.
So maybe the answer is to just go out and spend money on consumer goods.
Or, to put it another way, that the global economy is a self-organizing system which solves these problems automatically as long as the rule of law and enforcement of contracts is upheld.
Perhaps western countries should consider re-colonizing Africa in order to get those institutions working stably and then let the economy do the rest?
Unlike between botched decolonization and about 1995, Africa has been doing really well for the last 15 years (except for AIDS epidemics), precisely once the West and Soviets stopped their attempts at recolonizing by proxy.
The conventional wisdom that Africa is not reducing poverty is wrong. Using the methodology of Pinkovskiy and Sala‐iMartin (2009), we estimate income distributions, poverty rates, and inequality and welfare indices for African countries for the period 1970‐2006.
We show that:
(1) African poverty is falling and is falling rapidly.
(2) If present trends continue, the poverty Millennium Development Goal of halving the proportion of people with incomes less than one dollar a day will be achieved on time.
(3) The growth spurt that began in 1995 decreased African income inequality instead of increasing it.
(4) African poverty reduction is remarkably general: it cannot be explained by a large country, or even by a single set of countries possessing some beneficial geographical or historical characteristic. All classes of countries, including those with disadvantageous geography and history, experience reductions in poverty.
In particular, poverty fell for both landlocked as well as coastal countries;
for mineral‐rich as well as mineral‐poor countries; for countries with favorable or with unfavorable agriculture;
for countries regardless of colonial origin; and for countries with below‐ or above-median slave exports per capita during the African slave trade
But some people have argued that the most important thing we give to china is not dollar notes, but a market for their goods.
I think this is much less important than the other thing we give them: manufacturing specifications for all the goods we want them to make for us. If it was a market they wanted, the Chinese government could just allocate more money to the lower classes, and they’d have one.
Giving dollars to China is precisely what we are already doing. China has bazillions of $ lying in their soveriegn wealth funds and foriegn currency reserves.
But some people have argued that the most important thing we give to china is not dollar notes, but a market for their goods.
So maybe the answer is to just go out and spend money on consumer goods.
Or, to put it another way, that the global economy is a self-organizing system which solves these problems automatically as long as the rule of law and enforcement of contracts is upheld.
Perhaps western countries should consider re-colonizing Africa in order to get those institutions working stably and then let the economy do the rest?
Unlike between botched decolonization and about 1995, Africa has been doing really well for the last 15 years (except for AIDS epidemics), precisely once the West and Soviets stopped their attempts at recolonizing by proxy.
Not China levels of well, but really well.
I think this is much less important than the other thing we give them: manufacturing specifications for all the goods we want them to make for us. If it was a market they wanted, the Chinese government could just allocate more money to the lower classes, and they’d have one.