China is Coming! China is Coming!

We in the United States are living in the time of the great China scare. Politicians and Generals and Pundits use China as the great bogeyman of our age. Politicians fear its economy and bemoan its currency. Generals fear its potential military might and interference with the way things are. And pundits just like to talk.

Some food for thought:

Whereas goods labeled “Made in China” make up 2.7% of U.S. consumer spending, only 1.2% actually reflects the cost of the imported goods. Thus, on average, of every dollar spent on an item labeled “Made in China,” 55 cents go for services produced in the United States. In other words, the U.S. content of “Made in China” is about 55%.

HT: Marginal Revolution 

For those not math inclined, 1% isn’t that big.

From a military standpoint you may have heard that China has just put to sea trials its first aircraft carrier. Parts of the military establishment are in a tizzy and use this as a sign for more military expenditures and the end of American dominance. To put things in perspective:

• Number of aircraft carriers in China—1. Age—25 years.
• Number of aircraft carriers in Thailand—1. Age—15 years.

For a good read on the situation check out Information Dissemination.