Western China vs Eastern China

  I suspect the reason why western China remains to be backward compared to eastern China is because there just has not been much of a monetary push to develop the region. Comparatively, the amount of money that gets distributed to western China versus eastern China is fairly imbalanced. People in eastern China do pay more in taxes, but that is largely misleading since most new money that gets created by PBOC or any of the state lenders mostly ends up in eastern China. Western China would pay just as much in taxes if they had received the same volume in money supply as eastern China.

  PBOC would need to crank up the printing machine and have more of it distributed to western China to bolster incomes and to motivate growth. It may sound superfluous, but that is all the modern day economy really is. Fiat money. Ideally the economy is goods and services, but ultimately, its just legal tender. People do not work for corn chips and hot dogs, rice cakes and mabo tofu. They work for legal tender. The modern economy is not based around barter, its based on the printing and distribution of legal tender notes. People in western China would love to build that new bridge, that new factory, that new highway, or that new canal. But they cant build it until PBOC creates RMB out of thin air and pays them to have it built.

  A loose monetary policy needs to be encouraged with much of the money flow entering the western regions.