gwern comments on Assessing Kurzweil: the results - Less Wrong
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Handwaving away just one of the examples.
Yes, minus some minor events like the Great Leap Forward, the Cultural Revolution, Russia & China nearly going to nuclear war in 1969, Tienanmen Square... Gosh, there's no reason to think that China is at the slightest risk of war or revolution; it'd be like worrying about nuclear warfare when the last nuclear bomb used in a war was back in 1946!
Better yet, let's look at 1989-2011 using the FRED data on real GDP. Over 23 years, the economy increased in size by 26%, for an annualized growth rate of ~1%. This in a time period which saw, among other things, the Internet revolution start and reach maturity. Did technology really improve only by 1% Is this really consistent with your claim that Japan hit the limits of what is possible?
Use real figures. Inflation has not been 0% the entire period, and your chosen graphs aren't even being reported in yen.
'Many'? Look at a ranking of real PPP, there's a great many countries well below South Korea. Above SK, it's basically oil countries, European/American countries, and tiny outliers like Singapore.