Sunday, May 23, 2021

China beats USA by following Western classical economics!

 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


Matt Franko said...

“ embrace smart industrial policies.”

Yo what do you think the MAGA movement represents?

And then you effete morons want to get rid of Trump because your panties are all twisted up because he puts out mean tweets...

Matt Franko said...

But the one that really gets me is how you guys are all supposed anti war so then you have trump withdrawing from Middle East and has the whole region starting up multilateral dialogue (which btw you guys would all line up to blow Socrates if he were still alive) wants to get Russia back in G8 ... and peace is ready to break out over there so what do you do?

You don’t support trump because he puts out mean tweets ! LOL!

Now the war machine is cranking back up over there so what do you guys do?

You Go back to complaining about the wars!

You should all seek psychological counseling...

Kaivey said...

I do these posts on my phone, so there are always typos, especially as my phone has a ghost touching problem.

Ahmed Fares said...


Yo what do you think the MAGA movement represents?

Tariffs. Also, a wall to keep out Mexicans.

While it's true that a nation's exports finances its imports, it's equally true that a nation's imports finances its exports. Imports put US dollars in the hands of foreigners, so they can buy US products.

Trump put tariffs on Canadian aluminum. Canada uses those export dollars to buy things from the US like MRI scanners. Tariffs mean more aluminum production for the US and less production of MRIs. Moving down the value chain. Really dumb.

Hey, did you know that the US runs a $4 billion trade deficit with Bangladesh. Maybe you guys could tariff them and make your own textiles. Think of all the jobs that would create.

Here's a headline:

Trump says Apple should just build plants in America. I tried to figure out what that would entail.

And even if Apple could somehow manage to bring the whole process to the United States, at a huge cost, there might not even be much of an advantage in terms of global trade. China makes only about $8 per phone, so placing Apple and its supply chain in the midst of the US-China trade dispute just isn’t that smart.

“It always sounds good when a president sounds tough on trade and issues protectionist policies,” Wayne Lam, principal analyst at information and analytics firm IHS Markit, told me. “We just don’t have the sheer workforce size nor skill set to be good at consumer electronics manufacturing.”

Peter Pan said...

US military needs to more money to study UFOs.