Skip to main content

China: House Divided

 There have been claims that China's enormous economic growth and widely shared prosperity are the result of turning to capitalism. I think this is not true; China is not capitalist. Of course, that depends on having a definition of capitalism that is clear, and that does not simply apply to all nations

Exchange Relations

  • Exchange is a means of improving the welfare of both (all) parties to an exchange, if the exchange is voluntary
  • Voluntary exchange must leave the exchangers better off
  • The bases of voluntary exchange are three: Different preferences, same endowments, same preferences
  • Division of labor and specialization that creates what looks like different endowerments, on steroids
  • If I like bananas and you like oranges, and we both have bananas and oranges, then I'll give up some of my oranges in exchange for your bananas
  • We are both better off, even with the same total amount of stuff

Market relations

  • Exchange, in the sense of barter, is cumbersome, and transaction costs can hinder all but the simplest exchanges.
  • Markets enable the degree of division of labor to reach much greater elaboration, and create much faster growth in the wealth of market participants.

Capitalism

  • Capital is the product of saving, or foregone consumption, that allows entrepreneurs to use abstract value in the form of money to give physical form to their conceptions of production
  • Ownership in a capitalist system is both the mechanism for raising liquid capital-by selling shares that are claims against the value of future profits-and a means of controlling substantial resources independent from state direction and control

Capitalism is a system for raising liquid capital and creating countervailing power centers that constrain totalitarian aspirations of government

  • As long as the Chinese state is primarily centralized and authoritarian, capitalism will be blocked
  • This means that Chinese economic growth will be strangled, as capital becomes more and more constrained

https://www.aier.org/article/china-house-divided/

Comments

Post a Comment

Popular posts from this blog

Fauci Files Reveal Pfizer Helped Biden Rig 2020 Election

 Pfizer secretly colluded with Joe Biden's team to help him rig the 2020 election against Trump, according to new Fauci documents. In his new book, "On Call," Fauci admits that Albert Bourla, the CEO of Pfizer, called him the night after Biden was declared the winner of the election, to inform him of Pfizer's "Game-changing results" from the rigged mRNA trial. "On November 7, after the absentee ballots were counted, Joe Biden was declared the winner of the presidential election. It was the very next night that Albert Bourla, Pfizer's CEO, called me away from my neighbors' fire pit to inform me about the game-changing results from the Pfizer mRNA vaccine trial. I finally thought we had truly turned a corner in defeating this terrible disease." Today reports: In another interesting tidbit, Fauci discusses Trump's FDA Commissioner Stephen Hahn declaring that he would not go along with the Trump Administration's plan to roll out the vac...
Post a Comment
Read more

FDA & U.S. Postal Service Linked to Black Market Abortion Pill Cartels.

 Mexico-based drug cartels facilitating an increase in unauthorized, self-conducted abortions in the United States continue unimpeded partly due to insufficient regulation by the Food and Drug Administration and the United States Postal Service, according to a report by the American Life League. Katie Brown, ALL's national director, criticizes the FDA and USPS for failing to adequately regulate the distribution and screening of abortion-inducing drugs like Mifepristone and Misoprostol. Subscribe here The report, titled Beneath the Surface: Exposing the Abortion Pill Drug Cartel, highlights the operations of Las Libres, a Mexico-based organization that advocates for universal abortion access. It promotes the distribution of abortion pills through online networks, reaching women and girls across the U.S., often sending the drugs via USPS. RISKS. ALL emphasizes that these pills frequently come from unregulated sources, heightening the risks of additional harmful substances being prese...
Post a Comment
Read more

New York Times Updates Article That Claimed ‘Conspiracy Theory’ Against Election Software Company After

  Los Angeles DA announces charges against Konnech CEO for allegedly stealing and storing election worker data on servers in China Stuart A. Thompson, a New York Times reporter, wrote a story on Oct. 3 claiming that an election integrity group, True the Vote, and others had "threadbare evidence" against the company The only evidence backing Thompson’s claims was statements from the CEO and the chair of the election board in DeKalb County, Georgia Another county, in Virginia, has already halted its use of the software Gascon, a Democrat, alleged that the company stole the personal identifying information of Los Angeles County election workers https://www.theepochtimes.com/new-york-times-updates-article-that-claimed-conspiracy-theory-against-election-software-company-after-charges-announced_4787036.html
Post a Comment
Read more