America must acknowledge its systemic problems and implement structural reforms that curtail financial capitalism and embrace smart industrial policies.
China is state capitalism and industrial socialism, the winning ticket Germany used to catch up with the European countries that had empires. Germany borders many countries and doesn't have a large coastline, like the seafaring nations, so they had no empire. This meant resources and labour were expensive, and so they devised Industrial Socialism instead, where the government owned many of the service industries, and provided low cost services to the public and private sector. Private companies were not able to do this sort of long term investment, but they are very innovative, and so were able to flourish under these conditions. Many banks were publicly owned, and many the private ones were non profit, but all of the German banks would lend long term to industries and businesses to help nourish them.
Instead of competing, the Anglo-Saxon nations destroyed Germany by warfare instead, and they are now trying to do the same to China, which has no empire either.
Once in Western countries the government provided many of the services, but the finance sector wanted them in their portfolio instead, so now we have permanent austerity and monopoly capitalism.
China disavowed the communist model forty years ago. China’s contemporary economy is modeled after Germany’s 19th century system, which can be described as state capitalism or industrial socialism. This hybrid economy led to immense prosperity and made Germany the biggest European economy within a few decades.
Communist China Follows Classical Western Economics
What an irony that China is now demonized for following the suggestions of great western minds! China provides free school, free college, free basic healthcare, affordable (and world-class) transportation, inexpensive utilities, cheap raw materials etc., which enable Chinese corporations to become prolific manufacturers and exporters. People-oriented development is the cornerstone of industrial socialist policy. (Click here to see a collage of Chinese infrastructure – airport, library, bookstore, theater, skyscraper, bridge, subway train and more).
Nation of Change
