Wednesday, October 28, 2020

China’s growth challenge — Michael Roberts

The reason that the NY Fed as well as many Keynesian and other critics of the Chinese ‘miracle’ are so sceptical is that they are seeped in a different economic model for growth. They are convinced that China can only be ‘successful’ (like the economies of the G7!) if its economy depends on profitable investment by privately-owned companies in a ‘free market’ where consumption rules over investment. And yet the evidence of the last 40 and even 70 years is that a state-led, planning economic model that is China’s has been way more successful than its ‘market economy’ peers such as India, Brazil or Russia....
Different assumptions, different model and different economic theory. Development economics is one of the knottiest areas of economics and China is doing outstandingly well on any measure in applying it.

Michael Roberts Blog — blogging from a marxist economist
China’s growth challenge
Michael Roberts


Peter Pan said...

Marxists trying to stay relevant... while China has moved on.

Peter Pan said...

At the World Socialist Web Site (WSWS), they are. Only place where you get the real deal, not the watered-down stuff.