The Future

http://www.startyourbusinessmag.com

           As everyone know, different decide lead to different result and the future of two of the biggest economy systems, Chinese and American, is decided by many factors. In my opinion, the regulation, taxes and the land ownership is three of the most important factors which I have explain in my previous blog post.

Based on the research, many economist believe the U.S economy have grow to a point that need to re-adjusted in order to keep growing. According to the Article The End of Economic Growth in America from Fortune. Mr. Gordon, a Stanley G. Harris Professor of the Social Sciences at Northwestern University, suggest through “increasing immigration and investing in universal pre kindergarten education” can help U.S promoting faster economic growth. Which is understandable, suppose the economic system of U.S is a lake, everyone is a unit of water. Increasing immigration is getting extra units from outside of the economic system; to investing in universal pre kindergarten education is to increasing the power of each units inside this economic system and both will end up increasing the water inside the lake. However, Mr. Gordon's fundamental observation is that “no matter what we do, economic growth is dependent on technological growth, and we can’t expect an industrial revolution every century as if it were clockwork”. Since the economy system of U.S have fully developed in the past several decades and most of the factor of production have grow to it’s peak and compare to the other, the human capital is the easiest one to increased.

             Different to American, economist believe Chinese economic growth have not come to it’s peak yet since it is mostly working on product processing. Based on the China’s future challenge for the world economy, China face a short term challenge that to manage spill­overs that might be a sharp slowdown in China’s economic activity. The fast economic growth of China have left many problems untreated and to keep the growth under control became more important. However, as my previous blog post decided, Chinese government have a high control over their economic system and that will not be a big problem in the next few decades. Furthermore, Author have pointed out “how to cope with the integration of a financial powerhouse into the world economy” have became a big problem for the Chinese governor because as the buying force from China increase globally, it became harder to re-adjust the percentage of Secondary industry and percentage of Tertiary Industry. That will lead to a situation that either the economic collapse or  reform a new system.

           All in all, the future of both economy system will be different as the government’s action and the react from the people.