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It's definitely an interesting experiment. The conventional wisdom has been that governments cannot respond correctly and efficiently to economic demand. And,
by ap22213 11y ago
It's definitely an interesting experiment. The conventional wisdom has been that governments cannot respond correctly and efficiently to economic demand. And, I think that's the real reason why most westerners raise an eyebrow.
In some situations, it does seem to make sense for governments to step in and alter market forces. You see this in the U.S. in cases where there are inherent monopolistic factors, or when capital requirements are extreme, or risks are too high, or when market actors cannot coordinate quickly enough. But, who knows, maybe it will work out in China's favor.
Personally, as an outsider, it seems really crazy what they're doing. I wouldn't want the government influencing where or how I should live. And, the scale of what they're doing is causing ripples in the rest of the economy.
- meric 11y agoI wouldn't want the government influencing where or how I should live. But they do, every where, with housing projects, rent controls and public housing and subsidies for home improvements, from the US to Singapore to Hong Kong.
- est 11y ago> that governments cannot respond correctly and efficiently to economic demand You don't understand, the big thing going on in China is land consolidation. Government is driving mass people to these ghost cities.