There is no lack of innovation

  Job creation has zero to do with innovation. It is 100 percent money supply. I would think 80% of the articles on this blog help illustrate this very base point. By demanding X number of warships and air crafts, companies are forced to expand and employ laborers to meet the deadlines on those contracts. By subsidizing health care and education, it frees up personal incomes so that citizens would be able to use their personal capital for consumer purchases. This money does not come from taxation, otherwise no new money would be added to the money supply. It is simply created and given away. Taxation would only counteract the benefits of government spending because every Yuan that is taxed is a Yuan that can not be used towards private spending and investment.