High consumption share not prerequisite for high growth

Comments on Alan Kohler “Why China won't save the world”, 13/11/2009, http://www.businessspectator.com.au//bs.nsf/Article/China-economy-government-democracy-pd20091113-XQRKS?OpenDocument

Alan, you should ask Arthur Kroeber to learn a bit more about economic growth. It appears that he needs that badly.

It is interesting that Arthur Kroeber is based in Beijing but does not know much about Beijing, not to mention China.

He may be a westerner to pay $US70 for a haircut, but if I go to China I could get a cut for less than $US3.

It is appalling he got it so wrong on PPP.

Second, many economists, Arthur Kroeber probably included, don't seem to have a grasp of a simple mathematics and economic growth model, especially in a developing economy where the capital stocks are much lower and need to increase many times to catch up with the developed world.

There is no economic law that requires a high share of consumption as the only model of growth.

That is a pity of economics and a pity for so many economists.

They are likely to be surprised by what can really happen in China with a low share of consumption for possibly another two decades.