Anyone who has read us for very long knows that we’ve long been skeptical of the “Chinese Dream.” Back in 2011-2012 when union leaders and others were explaining to us that “state capitalism,” that is crony capitalism, worked because it was in China we urged caution. We argued that the economic data which came out of China was of poor quality. We argued that an economy based on patronage and centralized decree was destined for trouble. We argued that since prices weren’t free in China it was just a matter of time before real pain was felt.
Walter Block is one of my favorite people in the liberty movement. He’s clear, uncomprimising, and good natured. He’s also a brilliant economic mind.
China is a land of wonders. The joys of state capitalism abound in the ultimate crony capitalist state. Witness this gem of planning, a lovely condo placed smack dab in the middle of a massive highway. Very nice.
Well I can’t believe it. You mean the economic data from the world’s Ultimate Crony Capitalist State is intentionally incorrect? You mean China’s entire economy might be overstated by 10-12%? (Doesn’t that put Japan back into the number 2 slot?) You mean those ghost city stories are for real? That the red dragon, though not toothless is lacking much of the fire we thought it had? I am shocked.
This is what happens when the government runs the economy without the feedback mechanism of lawsuits and a free press. People and businesses just up and leave.
The ultimate crony capitalist state is looking at a sharp rise in prices.
An American woman unwrapping Halloween decorations bought from K-Mart earlier this year found a note which appears to have been written by someone working in a Chinese forced labor camp. It desperately asks the world to pay attention.
How can America compete with China’s subsidized industries in the 21st Century? Surely we will be left behind and the Red Dragon will come back to swallow us into its state-capitalism fed belly.
In his most recent column entitled Don’t Like State Capitalism? Blame the West Mr. Mishra again tries to defend an economic system within which the state is the primary driver of the economy. He again offers us examples such as Singapore, Japan, Korea, and of course China as how state centered capitalism can work. I answered this argument in a prior piece HERE
Mishra makes the same argument again,
I suppose that one should expect this sort of thing from a publication founded by the current mayor of New York, who appears himself to be anything but a free marketeer.
As I read the attached essay by Pankaj Mishra I was struck by the utter delusion of the author. He holds up Japan as a good example of how a country should do business. Yes, that is correct, the country which for 2 decades has been mired in near recession.