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Source link: http://archive.mises.org/11400/chinese-government-stimulus-builds-a-city-but-no-one-comes/

Chinese government stimulus builds a city but no one comes

January 7, 2010 by

Al-Jazeera reports from a brand new city in Inner Mongolia built by the Chinese government to prop up GDP numbers, but hardly anyone lives or works there. Investors bought units believing that real estate prices never fall. “Real estate is not a place to live but a place to park money.”

{ 11 comments }

Juraj January 7, 2010 at 4:56 pm

Truly shocking what governments can do.

Don't tax me bro January 7, 2010 at 6:18 pm

That’s nothing, check out the European village they built. Also empty.

http://emergenturbanism.com/2009/09/20/poundbury-in-china/

David Veksler January 7, 2010 at 7:07 pm

It’s the same story with the world’s largest shopping mall in Guangzhou, China:
http://video.pbs.org/video/1218530801/

Gil January 7, 2010 at 7:52 pm

So much for China being a growing economy.

Hard Rain January 7, 2010 at 9:12 pm

Keynesian economics in action!

whatstatersprecious? January 7, 2010 at 11:32 pm

http://www.zerohedge.com/article/china-begins-liquidity-tightening-bubble-threat-looms

American leaders take note…its called learning from your mistakes.

Del Lindley January 8, 2010 at 12:10 am

This is where the American company, First Solar (FSLR), has signed a memorandum of understanding to develop a 2GW solar (PV) power plant by 2020. Fantasy power for a vacant city–so who says central planners can’t get anything right?

geoih January 8, 2010 at 6:15 am

Takes the concept of digging a hole and then filling it back up to a new level.

Daniel Hewitt January 8, 2010 at 8:32 am

Hey, they’ve got to achieve their 8% year-over-year increase in GDP somehow!

bob January 8, 2010 at 10:03 am

You guys are missing the point. When they hire workers to destroy these cities, they create jobs and add to GDP. In fact, they shouldn’t even give them capital by which to perform such a feat. That way, they can create lots of jobs!

Core January 12, 2010 at 6:02 pm

@Juraj
Yeah, it’s truly shocking what a bunch of greedy power hungry idiots with no morals what so ever can indeed do….

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