Because they will damage investment and that in turn will hamper the military. Massive consumption spending, and that includes housing, at the expense of savings will reduce the size of China's already small capital structure. Should this occur the effect will be to raise the opportunity costs of military spending because living standards will be declining. Because, for example, America is vastly richer than China, dollar for dollar America's opportunity costs of military spending are lower than China's. One only has to think of how easily Reagan spent the Soviet Union into extinction to see what I'm getting at.
Poverty always breeds resentment.
Reprinted with the kind permission of The New Australian. All rights reserved.