Why is China laughing at America?

China has become an economic powerhouse.  Since Deng Xiaoping initiated economic reforms in 1978 it has averaged almost 10% economic growth each year.  That’s unprecedented and unheard of. 

The pre-1978 Chinese economy was averaging 6% growth per year; however, it was unstable and experienced repetitive crises.  Its GDP was only a fraction of that of the United States.  So China had a lot of room to grow.  In addition, its enormous population which is now more than 1 billion people meant its potential economic output could easily outdo the American economy if it could get its act together.  And that is exactly what China did. 

On the other hand, America has taken a detour off of the road to economic prosperity.  For decades America was the case study for success.  Other countries tried to emulate us to build effective educational systems, generate vibrant environments for innovation and entrepreneurship, create common sense rules of the road so that consumers weren’t exploited and competition was constructive, craft sensible social safety nets so that the old and the least successful weren’t a drain on public resources and those who faltered would be able to get back into the game, and pass prudent economic policies that recognized that government has a strategic role in building the infrastructure for economic growth as well as bolstering budding industries that could increase economic growth – something that even President Ronald Reagan agreed with. 

But in the past decade America has become distracted and divided by extreme partisanship.  Instead of building a consensus for a vision of America in the 21st century world, both parties are protecting their supporting special interests from the 20th century.  Instead of collaborating and compromising, which is the essence of democracy, we continue to be distracted, divided, and our economy stagnates further. 

Our politics and our economy are stale, because our political leaders are regurgitating ideas and arguments from the 20th century.  As David Brooks wrote, ““Covering this upcoming election is like covering a competition between two Soviet refrigerator companies, cold-war relics offering products that never change.” 

The heart of our problem is extreme partisanship.  It is the biggest threat to America’s short term success and long term survival.  It is ravaging our country from the inside.  Partisanship divides us into rival factions, makes our public policies less effective, and increases the power of special interests. 

Unfortunately, most Americans either don’t agree with this assessment or don’t care.  But the political leaders in China do. 

At the launch of the group “No Labels” in New York City in December 2010, which I attended, Senator Evan Bayh made a startling, scary, and yet not surprising admission.  As someone who sat on the Senate Select Committee on Intelligence he had access to inside information obtained by the American intelligence community including the CIA. 

As he said, what the Chinese leaders say about America behind closed doors should make us all embarrassed and frustrated.  He divulged that he heard conversations and read transcripts of Chinese officials declaring their joy for America’s political problems.  According to these Chinese leaders, partisanship was distracting Americans from their real competition, China.  The Chinese would continue to pass sensible policies that increased their competitiveness in the 21st century globalized economy, while Americans would fight amongst themselves on issues like the President’s birth certificate, irrational claims like “death panels,” the religion of political leaders, who’s supposedly a socialist or a fascist, and who represents the wishes of the founding fathers. 

All of these partisan games and ideological crusades distract us and divide us.  They do nothing to help Americans, improve America’s economy, or improve America’s competitiveness compared to China.  We should be embarrassed, frustrated, and demand more from our political “leaders.”  Because if we don’t China will be laughing all the way to economic dominance.   
 
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