Friday, November 07, 2008

China's Economic Stimulus Package

In the midst of an economic crisis, the United State government has passed out economic stimulus checks to taxpayers, passed a $700 billion bailout, and nationalized some of the nation's banks.

China has adopted their own economic stimulus plan: invest in improving their outdated rail system.

CHINA will invest nearly $445 billion in its overburdened rail system as a stimulus measure aimed at blunting the impact of the global financial crisis. The investment is part of plans to extend the country's railway network from the current roughly 125,502km to nearly 160,900km by 2010, Shanghai's Oriental Morning Post reported. The Beijing News quoted a rail official as saying that, while the network needed extending, the massive investment was also intended to help lift the nation's economy as it suffers amid the global woes.
Now, in 20 years what will we have for passing out money to taxpayers and nationalizing the banks? More debt.

In 20 years, China will have an improved rail system that will spur economic growth in their country.

1 comment:

William Meyers said...

We need to stay competitive with the chinese!

Go Me!