China’s purchasing power may be as great as ours. It is the first step to China’s climb into the top position. Reports that China has the World’s largest economy are premature. It is only by one measure, purchasing power while all other measures show the U. S. solidly ahead. It also is an estimate Marketwatch did without having data to analyze after the year ends and may be off 15% either way. In other words, it is more useful as a headline than a fact. Forgive me for not hyperventilating over the headline. Still, it should open up a discussion. In the 1870’s, the U. S. took over from the U. K. as the world’s largest economy, at the rate we are not growing and China is, sometime in the next 15 years, China will prove their theory that the history operates in 500 year cycles between East and West. The good news for the U. S. is that we are a Pacific Rim nation. We are poised to profit either East or West. None of this is inevitable. The problem is that we have lost almost a decade with terrible economic polices and are poised to keep losing ground. The average American has not seen income growth of significance in 15 years. During the Obama years, 95% of income growth has gone to 1% of the population, which makes Democrat cries of income inequality worse than empty rhetoric. Merely transferring wealth around does not grow an economy. Europe proved it just leads to stagnation. The Communists proved it can lead to worse. The American experience and to a lesser degree the Chinese experience shows that economic growth is the key to prosperity. The sad part is that America is consumed with media generated controversy while our economy is being plundered. If the people really knew what was going on, they would be in the streets for something that mattered. People are frustrated, but they have no idea who is responsible or how to fix it so it goes on unabated. If we reformed our regulatory state so it wasn’t such a burden on innovation, fundamentally reformed our tax system via the Fair Tax, controlled our debt increase, practiced truly free trade not manipulated trade to benefit to groups that write deals, real financial reform that includes a 21st century Glass-Steagall Act, and a modern infrastructure, we would be unstoppable. We don’t demand it so we don’t have it.