Monday, September 27, 2021

Connecting the Dots in China — Stephen S. Roach

The new dual thrust of Chinese policy – redistribution plus re-regulation – will subdue the entrepreneurial activity that has been so important in powering China’s dynamic private sector. Without animal spirits, the case for indigenous innovation is in tatters..…
Typical Western thinking. If I can have it all, I don't want any. Maybe Chinese entrepreneurs are more than mature that the adolescents in the US? If this were just Stephen Roach's opinion, I would bother calling attention to it. But I am hearing this more and more recently as another of those reasons that China is doomed to fail that never pan out.

And history shows that US enterpreneurs will take what they can get anyway and angle for more. The 90% max progressive tax rate didn't destroy US entrepreneurs' animal spirits.

There are also socio-economic factors that influence politics. The Chinese leadership are likely learning lessons observing growing political divisiveness, social unrest and societal dysfunction  in the US.

Project Syndicate
Connecting the Dots in China
Stephen S. Roach, a faculty member at Yale University and former chairman of Morgan Stanley Asia, is the author of Unbalanced: The Codependency of America and China.

See also

Zero Hedge
Morgan Stanley: We Are Approaching An Inflection Point In China Policy Easing
Chetan Ahya, Chief Economist and Global Head of Economics at Morgan Stanley


Peter Pan said...

The US is rentier friendly, for those few entrepreneurs who make it big.

mike norman said...

Roach has been wrong about everything his entire career. Amazing that this guy had such status. (Well, maybe not. It's Wall St after all.)