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Will China's Standard of Living Ever Exceed That of the United States? Please explain thoroughly with explanations and thoughts. Reference Link; https://media.pearsoncmg.com/ph/bp/bp_hubbard_econ_5/MTC/ch22/MTC2205.html In addition to

Will China's Standard of Living Ever Exceed That of the United States?

Please explain thoroughly with explanations and thoughts.

Reference Link;

https://media.pearsoncmg.com/ph/bp/bp_hubbard_econ_5/MTC/ch22/MTC2205.html

In addition to the first question, please respond to the two posts on the bottom on your thoughts about if you think China's standard of living will ever exceed that of the United States. Do you agree, disagree with this person's post? Why? Please include all of your thoughts and not short explanations.

Post #1 to respond to;

The way China's economy is going right now, the answer is no, the won't exceed the United States standard of living. China's economy has serious structural issues that, in comparison to the United States, may and will slow its growth in the long run. As a result, it would take many years for China to catch up to the United States in terms of standard of living. By 2037, which is, in my opinion, a very long time, but that does not mean that it is not possible, China's standard of living could possibly surpass that of the United States if the current growth rates in China were to continue at the same or better rates. If China were to maintain its high rate of growth, productivity, and real GDP per capita, which many economists believe is highly unlikely due, primarily, to the country's inability to develop enough new technologies and its aging populationthen Although China has been able to successfully adopt existing technologies from other nations, such as the United States, China is seriously behind in its long-term economic and national growth. Even if China made significant economic advancements and changes, it would still take a long time for them to catch up to other nations like the United States.

Post #2 to respond to;

While China did experience the beginning of an economic shift from a centrally planned to a market economy following the 1978 economic reforms, I do not believe China's standard of living will exceed the United States for a couple essential reasons. The first being that China would have to maintain its current high rates of growth to bridge the gap, which upon the completion of the economic transition is predicted to slow. Another is that while China has made technological advances, they are not at the frontier of successful technological innovation as opposed to the United States. Additionally, upon the shift of China's low-wage agricultural workers to the manufacturing sector, wages for those workers have risen, causing China to lose the cost advantage it once had with countries such as the United States. China is also the most populated country in the world, however, their low birth rate combined with an aging work force is expected to cause issues in their ability to maintain high productivity. This will have a dampening effect on their growth rate despite technological advances offsetting a portion of it. Perhaps the most inherent reason I do not believe China will exceed the United States' standard of living in my lifetime is that they remain an autocratic country governed by communism, of which fails to deliver on property rights, the rule of law, political freedom and government subsidy funded firms with low productivity that are unable to compete globally. Unless sweeping revolution changes the foundation upon which China has governed itself since the 1950s, I do not foresee the possibility that their standard of living will ever exceed that of the United States.

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