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I do not understand why China is unable to divert its resources at this point to things like better education. Strong independent domestic institutions. The bi

by 1971genocide 11y ago

I do not understand why China is unable to divert its resources at this point to things like better education. Strong independent domestic institutions. The biggest problem was assuming that the market players are rational in the absence of information. Markets only works with information. Its seems pointless to talk about the one without the other. If someone had 100 dollars. The difference in yield between 2% and 7% is not as big of a deal as transparency. Since loosing your entire 100 dollars is much more worse. As someone who is close to india. I find it amusing whenever people tell me how much better China is compared to india and that maybe india should be more like China. Multinationals constantly complain about Indian red-tape not realizing that its not so simple to displace farmers to build a highways in a democracy. I also see the same thing happening in america with people like Donald trump openly saying that China is beating the US. It seems capitalists really like china - which says a lot more about capitalism then it does about china.

tn13 11y ago
Grass is always greener on the other side but when you look at the larger picture it is certainly clear that while 600M Indians still ear dirt, Chinese people have almost tripled their per capita income in 20 years. Which is pretty significant and India will take another 15 years to reach where China is today. That matters a lot on the ground. It is true that China is bearing US. Look at how China has appropriated South China sea. See how any geo-political decisions taken by American government needs to factor in Chinese interests. It is only matter of time before US become China's bitch on international stage.
Cookingboy 11y ago
The same capitalism also moved a billion people out of absolute poverty. It's not all black and white by any means. China's communist history royally screwed over the country from 1949-1978, and autocratic capitalism was the drastic measure necessary to change the people's lives for the better. Obviously the country is no longer remotely the same today, and the central communist government is trying hard to adapt (i,e keep developing the country while making sure they hold absolute political power).
brc 11y ago
There is no doubt that free(er) markets in China have not only helped the Chinese people to a better life, but through the magic of free(ish) trade, have made the lives of people throughout the world better. The one thing China does better than places like the US is in the savings rate. Everyone could learn from that.
- aianus 11y ago
  'Savings' is not a worthwhile goal in and of itself. If all you do with your savings is stuff it under the mattress or lend it to banks who in turn lend it to homebuyers to perpetuate the greatest property bubble in history... you're going to have a bad time.
  - brc 11y ago
    Savings are a necessary pre-requisite for investment. On balance it is better to have savings than debt. Creating bubbles in certain asset classes is usually the fault of differential tax or regulation treatment for that class. It can be avoided by not creating special classes. The story of savings being stuffed into mattresses is usually followed by some type of incorrect Keynesian thinking. It's so rare that it is not a problem. A 'general glut' as it used to be called has nothing to do with hoarding savings.

tn13 11y ago

Grass is always greener on the other side but when you look at the larger picture it is certainly clear that while 600M Indians still ear dirt, Chinese people have almost tripled their per capita income in 20 years. Which is pretty significant and India will take another 15 years to reach where China is today. That matters a lot on the ground. It is true that China is bearing US. Look at how China has appropriated South China sea. See how any geo-political decisions taken by American government needs to factor in Chinese interests. It is only matter of time before US become China's bitch on international stage.

Cookingboy 11y ago

The same capitalism also moved a billion people out of absolute poverty. It's not all black and white by any means. China's communist history royally screwed over the country from 1949-1978, and autocratic capitalism was the drastic measure necessary to change the people's lives for the better. Obviously the country is no longer remotely the same today, and the central communist government is trying hard to adapt (i,e keep developing the country while making sure they hold absolute political power).

brc 11y ago

There is no doubt that free(er) markets in China have not only helped the Chinese people to a better life, but through the magic of free(ish) trade, have made the lives of people throughout the world better. The one thing China does better than places like the US is in the savings rate. Everyone could learn from that.

aianus 11y ago
'Savings' is not a worthwhile goal in and of itself. If all you do with your savings is stuff it under the mattress or lend it to banks who in turn lend it to homebuyers to perpetuate the greatest property bubble in history... you're going to have a bad time.
- brc 11y ago
  Savings are a necessary pre-requisite for investment. On balance it is better to have savings than debt. Creating bubbles in certain asset classes is usually the fault of differential tax or regulation treatment for that class. It can be avoided by not creating special classes. The story of savings being stuffed into mattresses is usually followed by some type of incorrect Keynesian thinking. It's so rare that it is not a problem. A 'general glut' as it used to be called has nothing to do with hoarding savings.