主题：2012 大选周记 之一 -- 切地雷

but in 2001-2005, most private sector investment fled to expand productive capacity in (esp., export-oriented) manufacturing, retail, other innovations.

Do not blame capital--it just follows its natural instinct of safety and profit. You need to blame the poor public policies, esp., the monetary ones.

In US, before 2007, the public policy was very bad, ending up with a massive housing bubble and a spectacular collapse. So was now in Canada. Capital is just doing what is best at: safely growing itself. It has both its bright side and dark side.

China's problem: business elites are worrying that political elites will just rob them off all of their assets for so-called public goods (actually for self-enrichment and transfer to their Swiss or Canadian bank account--this is open secret).

Business elites carry with them both money and expertise in certain business field. If Chinese keep their traditionally hostile attitude towards the business class, they will get what Indonesia got in 1998. Watch what the local Malays did to the Chinese business elites.