Chinese government stimulus builds a city but no one comes

[Kevin_Kennedy]

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."

[youtube]0h7V3Twb-Qk[/youtube]

Chinese government stimulus builds a city but no one comes - Douglas French - Mises Economics Blog

This just goes to show why GDP numbers aren't really an accurate depiction of economic growth, because GDP rises as government spends and government spending is not healthy for an economy. It also shows the failure of government planning as opposed to the free market.