4 trillion dollar pie
Corbett | December 27, 2008 11:01 AM
My friend Lars puts together some nice investment newsletters for his company, but since no one is investing these days, he wrote something about the stimulus package and put up this nice image how it's being allocated. I don't quite get all the hoopla over this plan since it looks just like another 5-year plan in different clothes, but it is interesting to point out the amount to be spent on health care and education.
Category: Mr. Asia
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Paul Denlinger
December 28, 2008 1:31 PM
For the current generation, China's most pressing problem is the lack of anything resembling a comprehensive national healthcare system. More than anything else, this will prevent Chinese from spending more on consumer items and driving consumer growth.
And it is getting only 1% of the 4T???!!! Sheeesh!!!
Looking at this chart, I get the feeling that the Chinese government and party are still too much in love with large infrastructure projects, and do not intend to support private Chinese SMEs. It is these companies which would create job growth and service growth in China and would help the Chinese economy recover most quickly from the recession.