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

Hunter Biden Held Previously Undisclosed Meeting With The "F**king Spy Chief Of China"

 First brother Jim Biden told Congress last week that Hunter Biden held a previously undisclosed meeting with Patrick Ho, an executive with Chinese energy conglomerate CEFC China Energy - which, weeks earlier, paid Hunter and Jim Biden $5 million as part of a joint venture to find investments for the Chinese firm, the Washington Free Beacon reports. In a congressional deposition last month, Jim Biden said he accompanied Hunter Biden to Hong Kong in September 2017 to meet with Patrick Ho... ...The Biden family's arrangement with CEFC China Energy has stoked national security concerns because of the Chinese firm's links to Chinese military intelligence. According to Jim Biden, he and Hunter Biden had a "Pleasant" lunch in Hong Kong with Ho, who also served as head of the China Energy Fund Committee, a think tank funded by CEFC China Energy. Washington Free Beacon According to Jim Biden, "Ho said, 'Can I borrow Hunter for, you know, a half-hour? We're going ...
Post a Comment
Read more

WEF Orders Govt's To Declare Martial Law Due To 'Imminent Bird Flu Pandemic' About To Sweep Globe

 The World Economic Forum has ordered world governments to make the necessary preparations to declare martial law due to an 'imminent bird flu pandemic' which they say is '100 times worse' than COVID-19. According to WEF scientists, the coming bird flu pandemic will kill at least 50% of those it infects. Infowars.com reports: Cattle in six different U.S. states have been diagnosed with this new bird flu strain. GOP Rep. Thomas Massie of Kentucky shared a screenshot of a February 2024 Daily Mail article with the headline, "REVEALED: US is collaborating with Chinese scientists to make bird flu strains more infectious and deadly as part of $1m project - despite fears similar tests unleashed Covid." "Where have we seen this before? U.S. collaborates with China to make bird flu more contagious and transmissible to mammals. bird flu now discovered in U.S. dairy cattle, transmitted to at least one human being. Knock it off already!" Massie wrote. Secretive ...
Post a Comment
Read more