China's Investment Boom

Moneybox
A blog about business and economics.
Dec. 20 2012 3:44 PM

China's Investment Boom

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From Business Insider's year in charts roundup, an indication of just how capital-intensive the growth cycle in China has been.

The fashion is to say that this is "too much" investment, but I don't really see it. Having a low per capital stock of capital goods is more or less what it means to be a poor country. And China is still a poor country, though much less poor than it was fifteen years ago. This super-rapid capital accumulation represents China's very rapid process of lifting itself out of poverty. It's a process that will, to be sure, have to come to an end one of these days. But China still has some way to go before catching up with the west.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

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