China's prosperity are built on:
1️⃣Industrial foundation during Mao era, with Soviet help, which was the biggest organized industry transfer in history.
2️⃣Reform & opening up, building up the biggest foreign-exchange reserve.
Why India doesn't have any of these 2.
1/10🧵
1️⃣Industrial foundation during Mao era, with Soviet help, which was the biggest organized industry transfer in history.
2️⃣Reform & opening up, building up the biggest foreign-exchange reserve.
Why India doesn't have any of these 2.
1/10🧵
The "experts" that claims India will match China are simply delusional, and do not fundamentally understand what made China successful.
The steep wealth increase in China was the INDIRECT result of the 2 things mentioned above.
The steep wealth increase in China was the INDIRECT result of the 2 things mentioned above.
The most direct increase in wealth among Chinese families are actually the property value.
Housing in its essence is just a wooden or concrete box, its real value exists in the location and services near it (schools, healthcare, transport and job opportunities).
Housing in its essence is just a wooden or concrete box, its real value exists in the location and services near it (schools, healthcare, transport and job opportunities).
These property wealth were all backed by China's massive industries, exports and foreign echange reserves.
Without any one of which, none of the intangible wealth exists.
And China is so good at export, was because of the industrial foundation and social reforms of the Mao era.
Without any one of which, none of the intangible wealth exists.
And China is so good at export, was because of the industrial foundation and social reforms of the Mao era.
Imagine the economy of each country as a bicycle, the legs peddling it are outside forces (exports) to make the bike go.
How efficiently the bike can go depends on the power of the legs, AS WELL AS the bike itself.
Is the chain lubricated, are the ball bearings of good quality.
How efficiently the bike can go depends on the power of the legs, AS WELL AS the bike itself.
Is the chain lubricated, are the ball bearings of good quality.
Chains and ball bearings are the industrial foundation and work force of a country.
India of today is an inefficient bike, with rusting chains and broken spokes.
The tiny legs powering the bike are a handful of US companies that cannot provide enough output to...
India of today is an inefficient bike, with rusting chains and broken spokes.
The tiny legs powering the bike are a handful of US companies that cannot provide enough output to...
...generate the rapid wealth creation of China in the early 2000s.
India's poor infrastructure, inefficient governance, poor social conditions for 50% of Indians (women), all exacerbate the inefficiency problem.
India's poor infrastructure, inefficient governance, poor social conditions for 50% of Indians (women), all exacerbate the inefficiency problem.
To predict the future, simply look at the trends.
India under Modi is regressing into a theocratic state, where religious fanaticism presides above all.
India under Modi is regressing into a theocratic state, where religious fanaticism presides above all.
India's manufacturing as a percentage of its GDP have gone down under Modi.
Using the bike analogy, India have tiny weak legs powering a rusting bike.
Weak manufacturing means few exports, which causes weak domestic supply chain.
Using the bike analogy, India have tiny weak legs powering a rusting bike.
Weak manufacturing means few exports, which causes weak domestic supply chain.
So even if Modi and his crony capitalist fraudsters like Adani wants to inflate the properties bubble a bit to rapidly increase the wealth of Indians (while making hundreds of billions themselves).
They cant, because the Indian economy has very few industry of tangible values.
They cant, because the Indian economy has very few industry of tangible values.
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