Monday, July 9, 2018

BIZARRE CENTRAL PLANNING: The Phony Chinese Building Boom

There is bizarre central planning going on in China where local government officials are rewarded by the national government by the amount of building that goes on locally. This has a lot to do with the spectacular fake GDP numbers coming out of China.

The building is going on in areas where no one is interested in moving. Thus, massive ghost cities have been created.

I have long suspected that builders would eventually realize that no one was going to move into the buildings and so would just pretty much put up facades of real buildings.

In 2013, I wrote:
A large part of the Chinese economic boom is phony. There are 10s of millions of apartments constructed but unoccupied. These apartments when "completed" boost the GDP number but have little to do with raising the standard of living of the average Chinese. It is part of the crony central planning remains in China. I suspect that most of the unoccupied apartments are built with very poor standards, including poorly equipped kitchens and bathrooms.
It is clear this is now going on as the clip below reveals.


1 comment:

  1. Though it is not a perfect plan, it keeps a large portion of the work force employed. Certainly more healthy (if you can call it that) than the USA plan of spreading "Democracy" killing and starving 100s of 1000s of innocents in the process.