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In some of my previous articles I introduced the economic structure in China. I mentioned that over there most of the profitable businesses such as oil, public transportation, banks, military industry and natural resources all belong to the government and that means the public will be benefited indirectly.

After doing some research I have to update some data here.
In 2010 all the government-owned businesses made 150 billion dollars profit and the tax they paid was only 1.5 billion dollars. One of the oil companies made 2.4 billion dollars profit and they still get funding from the government. It is said all these years that oil companies were protected by the government and control the market. However, they have tax exemptions and received funding from the government as well.

In 2011 Chinese military budget is about 90 billion U. S dollars. That money is more than the sum of its medical budget and social security budget. In 2010 Chinese government tax revenue was increased over 20%. A family with 3000 U.S dollars monthly salary has to pay 50% of their income as a different kind of tax.

In 2010 a vice president of an oil company was considered corrupt. His assets were over 30 million U.S dollars. In 2011 the department head of a railroad in the central government was prosecuted as corrupt. His assistant who was in charge of high speed rail projects had over 400 million U.S dollars in assets when his salary was 2000 U. S dollars a month. The Chinese never knew how those people get into the government’s position. After attending college for three years and graduating a twenty-five years old girl became the vice president of an oil college in Liao Ling province. Her father is a mayor of the city around there.

What I want to say is that by law Chinese economic structure maybe is better than the United States which allows a private family to run the oil companies. However, since the political system in China is not backed up by laws most of the country own businesses making a profit for a few powerful people only. If China couldn’t get rid of those corrupt leaders in their country who own businesses could not benefit the public at all.

There are two ways to reform the system. One way is what happened in Egypt — people sucessfully overthrow the government through protesting from the bottom. In that way a country has to pass through an unstable situation and we don’t know if the new government can really handle things well. This kind of revolution can’t happen that easy in a country as big as China. The second way is let the government make reform from top to bottom. It looks like the current Chinese leaders are willing to consider more of people’s concerns and deal with corruption.

The experience of a government leader Wang Tien Qi in Jiang Su Wei Ning county was announced in China. He opened his phone number to fax machines and let people send fax messages to him. He arranges a group of young people including a Phd degree holder to take care of the messages. They forward the message to related departments and make sure people’s problems are resolved. He fired some people because things were not being handled well. Under his leadership that county’s government income increased 400% in four years. This kind of reform is efficient and better than simply overthrowing a government because you never know if the next government is smarter and better. Just like we don’t know Obama’s ability until he get into the position. When we know something is wrong it is too late.

In March, 2nd 2011 Hillary Clinton made a statement claimed that the Chinese are American’s enemy. If U.S reduces their financial aid to foreign countries U.S will lose its leadership in the world.
Her statement sounded ridiculer as it reflected a big country’s stander in a funny way. In the real life the conflicts between China and U.S should not big enough to make them become enemies. At least the Chinese never claim that U.S is their enemy. If we consider the Chinese are our enemies because some unfair businesses trades we can stop trading with them in overnight. If we consider China is our enemy because the territory arguments between countries in Asian we are over react. Even Japan and Indian don’t openly claim that China is their enemy why Americans are so involve?
We feel uneasy because China is the only country that can substitute the United State’s leadership in this world. In Hillary Clinton’s opinion for maintaining our leadership U.S needs to financial aid to certain countries. Unfortunately our government is seriously out of budget. We are live on debts and we are printing dollars to deal with our expenses. We must know the consequence. How can people from the world accept our leadership when we exchange their products with paper? How can we earn people’s respects when we create inflation in the world and put people in hard time?
For being a leader United States lost huge money all these years. We put nuclear bombs in Japan and we fought years in Vietnam War but now we back up our ex-enemies to against China. We still don’t know how to end the wars in Iraq and Afghanis and we set up a stronger enemy on our own. Who do we think we are? What actually benefit we have as a leader like that?
All I want to say is that we are in the wrong track. We should not for become a leader to waste money. Instead we should cut our defending budget and cut funding in international fare. In 2010 our defending budget was 636 billion dollars. If we spend 78 billion dollars as what the Chinese spend on their defending budget we can save 558 billion dollars every year. That means in about three years we can wipe off our 1.4 trillion dollars national loan. On that way we will earn the respect from the world for we don’t steal by printing dollars and we are maintaining peace. Now we run to the wrong direction. We set up enemies and spend huge defending funds that create debts. Noby but our own self is our enemy.

In Feb 2011 after Chinese New Year many Chinese business were seriously short of workers. In Nan Jing City, one of the three biggest job fair in China twenty thousand jobs had only one thousand people registered for that. In Canton City, more than two hundred business had more than five thousand jobs open and the hottest position had only ten people waiting on the line. All morning in the job fair many businesses got no even one job request. Basically job fair in most of big cities in China only get 10% workers of what they need.

It is said Chinese factories have already increased 10% to 15% of their salary within two month after 2011 New Year. In Shang Hai the minimum salary is increased 14% up to two hundred U.S dollars monthly. Still people are not interested to work. Comparing with three years ago labors in China have reduced 20 million people. Chinese businesses have job orders but have no enough workers to work for that. For pleasing their workers business gave out different kind of New Year gifts. They bought train ticks for their workers or sent trucks to pick them up in their home town.

Peasants in China are not interest to work in cities because of the inflation. It is easy to find jobs near home now. It is not worth to work out when inflation makes their expenses in the city is much higher than before. Things in China are as expensive as Unite States however Chinese workers only get 200 and 250 U.S dollars salary per month. For having $450 income workers have to work 400 hours monthly. People said before when they had 700 RMB salary monthly vegetable was only ten cents a pound. Now price for the same vegetableow increase 10 times to one RMB. It helps them nothing even though their salaries are double from 700 RMB to 1400 RMB. Most of the young labors were born after 80s’. They are the only child of their families. They don’t think it is worth to work hard for those kinds of low incomes.

It is obviously that accusing the Chinese take jobs from U.S is not fair. The picture shows that the Chinese are being exploited. For saving dollars Chinese government allowed things to happen. American market enjoys Chinese low price products and meanwhile complains that the prices of Chinese products are too low to be bitten. They don’t think that is because the cost of labors are too low but believe it is because the rate of RBM is too low. They depreciate U.S dollars and make profit that the Chinese earn gone with the wind. Chinese try to resist dollars’ depreciation and they are accused of controlling currency rate.

In 17, Feb 2011 14 Democrat senaters in Wisconsin were disappeared together to avoid a vote for reforming a benefit law relates to public employees. If they take the vote Republicans will easily pass a new law that makes public employees pay more for their pensions and health care.

From 2001 to 2010 Wisconsin taxpayers have paid eight billion dollars health insurance and 12.6 billion dollars retirement pensions for those public employees. Meanwhile the beneficiary paid less than 5%. For reducing the 3.6 billion budget deficit by mid 2013 Wisconsin State plans to make equivalent of a 8% pay cut on those benefit payments. Democrat legislators have no chance to stop the reform. They simply take their salary and run away from their offices. They meanwhile organize a protesting to stop the Republican legislators who have more seats in congress and represent the majority people in Wisconsin. One thing they protesting for is Wisconsin State governor,Walker, tries to curbs state worker’sbargaining right. Walker’s said his reason to do it is because state workers need to have more flexibility to deal with up to $1 billion in budget cut.

Actually Democrats legislators’ performance should not be encouraged because it broke the rule of the game. America always respects the majorities’ wills and let them make the law reforming. Unfortunately instead of sending his people back to Wisconsin state congress Obama let White House’s Organizing for American to call people from all over the country to protest in Wisconsin for stopping Republican legislators. He must be craze for he forgets that he is the president of a county not a leader of some special-interest allies.

He said Wisconsin Republican legislators are “assault on Unions”. He thought his accusing is strong and powerful. My argument is So What! What is wrong to assault unions if they hurting the taxpayers’ benefit. IN his speech Obama said, “It is very important for us to understand that public employees, they’re our neighbors, they’re our friend”. I don’t know who prepared this kind of low level talk, himself or his team. I never see an important thing that a president believed is such nonsense.

The picture is very clear that State governments are out of budget. In 2012 45 state government’s budget deficit are over 125 billion dollars. For avoiding debt we have to either cut the government spending or make our taxpayer tight their belts to support those public employees’ special benefits. Obama said public employees are our neighbors and friends. However, it doesn’t mean that they have right to take advantage from the taxpayers. We are their neighbors and friend as well why they don’t take a consideration for us – reducing a bit of their pay. When those public employees retire they will get 70% of their salary. That means if their annual salary are $80,000 they will get $56,000 salary per year without doing anything. Should taxpayers support that kind of expenses in long term just because they are our neighbors and friends?

People from private companies are suffering from pay cut or losing jobs. It is too much that union protesting for only 7% pay cut when taxpayers pay enough for their benefit all these years. Obama is suppose to make the budget cut in White house as what Wisconsin governor does. He does nothing but sides with the union people. Why? Because union people can unite together and give out votes. Obama needs votes. He doesn’t mind that he will do nothing but minds to keep his position.

He obviously aside in the wrong place this time because public employees are not the majority of this country. People who making noise loudly doesn’t mean that they represent the justice. They are just being organized well. Standing aside with union people make Obama become a leader in the street. He will not work things out when he requests for increasing the national debt limit. Statistic shows states that firmly support Democrate have reduced from 36 to 23 since 2008. Americans first were despointed by little Bush then by Obama. Can our election give us a better leader? I doubt and hope…. When we realize that they are not the right people it is always too late.

In February 2011 Obama presented a $3.729 trillion budget proposal for fiscal 2012. In the budget he will create another 200 billion dollars deficit for this country in 2011. The most interesting part is that he promises to reduce the federal deficit by 1.1 trillion in the next 10 years when his presidency year has only two years left. My question is that as a president he cannot even prevent his health insurance reform being reversed how can he guarantee that his budget plan works when he is out. If he is failed in the next election even the national debt is really reduced it should have nothing to do with him, isn’t it? His proposal proofs that he tent to make empty talk.

He is worried that Republicans will cut into the recovery. House Speaker John Boehner said “Over the last two years the federal government has added 200,000 new federal jobs. If some of those jobs are lost in this, so be it. We are broke.” Actually in the last two years Obama did nothing to create jobs. He simply created debt to support those so call job opportunities. He considers that is his achievement for recovering economic. He forgets that anybody could do what he did – borrowing money.

In his budget proposal he insists to invest in high-speed rail and energy efficiency. He considers that is a way to boost U.S competitiveness. It is obvious that he compares U. S with China. China has 1.4 trillion population and we have only 400 billion people. Potential passengers for the two rail systems are different. For building the high-speed rail Chinese rail road department has 1.4 trillion RMB debts. Their debts are about 56% of their total asset and it gives them troubles to get loan from the banks. Beside that data shows: 100 billion dollars investment in high-speed rail can only create 1500 jobs. That means Obama’s 300 billion dollars spending in high-speed rail will give almost no help for the job market. His energy efficiency investment will only create some high-tech jobs as well. He forgets another thing that peopl who need jobs are from manufacture jobs and construction fields. Create high-tech are help nothing. Our government could not create debts to support those unnecessary jobs forever.