The Rising Influence of Rising Affluence

[jbog]

Oldberkeley,

I left Bejing yesterday afternoon for Shanghai so I caught the pollution first hand. The smog really got bad because the cold temps and coal is their main energy choice.

It would remind you more of a old Pennsylvania Steel Town than a auto smog. There is a auto problem, but that's on top of the coal usage.

As far as your Bernanke comment, keep in mind we give the average U.S. welfare recipient 3x what a electrical engineer earns in China. The engineer provides output and consumption while the welfare recipient only provides consumption.

If the problem persists, they'll simply start closing the factories.