Originally Posted by
Big Pistons Forever
A bit of an oversimplification, but I believe fundamentally accurate summary of the Chinese model. Chinese citizens accept one party rule with no political dissension allowed in return for a steady and significant increase in opportunity and wealth for almost everyone in the country. So far the government has delivered, but to do that requires a real GDP annual growth of at lest 6 %. This is an extremely high bar and will be impossible to achieve this year and likely for at least the next 2 years. The inevitable result will be a huge increase in unemployment and a significant reduction in individual wealth for many.
With 27 million people now unemployed and growth dead for a while it will be interesting to see how US fares. The model you assume applies equally well.