Lessons from Kaifeng: Kristof’s NYT article

First read Kristof’s 22 May NYT article.
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Kristof writes: “So what can New York learn from a city like Kaifeng? One lesson is the importance of sustaining a technological edge and sound economic policies. Ancient China flourished partly because of pro-growth, pro-trade policies and technological innovations like curved iron plows, printing and paper money. But then China came to scorn trade and commerce, and per capita income stagnated for 600 years. A second lesson is the danger of hubris, for China concluded it had nothing to learn from the rest of the world – and that was the beginning of the end. I worry about the U.S. in both regards. Our economic management is so lax that we can’t confront farm subsidies or long-term budget deficits. Our technology is strong, but American public schools are second-rate in math and science. And Americans’ lack of interest in the world contrasts with the restlessness, drive and determination that are again pushing China to the forefront.”
In all my travels through China, I’ve never been to Kaifeng — but I’ve seen enough of other Chinese cities like Xi’an that were once hubs along the Silk Road. Watching the hard work of Chinese students and workers, I have no doubt that Kristof is right about Americans’ need to not be complacent. We Americans have not been paying attention to the economic impact of our debt — especially its facilitation by the Chinese state’s buying of T-bonds; in essence, China is making our current lifestyle and government policies possible. When the Chinese state feels it’s no longer in their interest to float US debt, then New York may start to look like Kaifeng.