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What is wrong with this new emerging picture of Chinese economy run by a communist government
braking self adjusting dialectic economics of Capitalism however succeeding in maintaining
consistent economic growth even in time of great recession and the rest of the world deepening into
fiscal shortages and rising debt?
Well, lets go back to History: since ever known there were the rich and the poor, the having and the
having not, the oppressed and the oppressors, the systems of government ships and the economics
always protected the having and suppressed the having not, however in time the meaning of the
having not have risen as needed for more educated employment consequently building the middles
class that responded as a demand to the rising industrial production; throughout that time was built
the known marketplace of supply-to-demand economy (notice please the place of supply); the
having became very much dependent on the having not for market consumption to maintain the
ever rising industrial production thus the “having” became more like of an abstraction then a reality
because it was not anymore having objects or even capital but ‘having” was more like participation
into a marketplace by owning and reinvesting into the motion of this marketplace, the motion of the
modern day Capitalism. Prompted growing demand for industrial production, freedom of business
(allowing shady business practices of easy business), opening of new markets around the Globe
adding demand to the local marketplace, access o capital trough public financing and excessive
concentration of capital which trickled-down immersive financial power, general individual freedom
and well established rule of law, all of it made economics of Capitalism very vital to bring prosperity
to the North Americas, Western Europe, South Asia and Japan. Long term growth of these
economies was the envy of anyone in the world: opportunities to manage good life trough education
and labor, to find ones place in the society responding to ones hard work and talents, to live in
freedom of speech, to vote for your governments: what a staggering success of the modern day
Capitalism! More individuals in the most developed countries had access to education and possible
success stories then anywhere else. Thus how Capitalism and Personal Freedom were well
associated to progress, opportunities, and finally personal success so important to anyone in the
world. The contrast between the oppressed people in the Soviet Block and the free successful
people of the Western Countries was the highest show of the rightness for the Capitalism ever.
Soviet style economics had businesses and financial system run by the governments: low
productivity, shortages, wasting of reassures was a synonymic with such economics. Suppressing
individual freedoms, imposing strong dictatorships and control over all was their way.
However China was a part of he system where the said above refers to in full power:
mismanagement, low productivity, wasting of recourses causing technological backwardness and
shortages of goods and services were well practice there. So, why China runs constantly for the last
20 years economic growth with a Communist regime still in place?
While post communist countries are up to nowhere running into high unemployment, lack of
consistent growth and high national debt, and like Russia expanding the contrast division between
rich and poor, Social policies in these countries are reduced to minimum, hospitals are closed and
pension age is expanded, lack of opportunities caused by budgetary cuts and fiscal shortages.
While the most industrialized countries are running into high national debt, high unemployment and
very low growth if any, capital and industrial production that is the majority added to their GDP
outsourced and moved away to…. China.
What is wrong with this picture indeed? Actually, everything is totally wrong: the whole ideology
and the consequential system of economics of Capitalism, the whole mythology created in the Last
Century does not properly explain and uses economic tools to balance “demand-to-supply” on the
globalizing marketplace. Let’s put it this ways: the presently used system of economics of the
trickle-down Capitalism, the Global Financial System represented by the World Bank, IMF and WTO
and the Western Governments’ economic polities are well very wrong, because of the Globalization
supported of rapid technological innovations, of well smoothed system for Global Investment, of
ever rising Productivity, and of China, India and Vietnam’s entering into the Global competition for
industrial production and capital services. Which new developments are very such for the entire
history of the world and thus have never before being dealt with.
To associate impractical usage of economic tools that lack flexibility in wealth distribution and
redistribution, that ignore the importance Social and Infrastructural Expanses might have for
balancing “demand-to-supply”, that treat economics as a “believe” and ignore needed practicality,
that call for “austerity” and budgetary cuts able to hurt many families and mostly the poor and the
minorities calling all of it economics and the global financial system, such policies are self-
proclaimed idols lacking even common sense.
Many economists are totally opposing any major changes of the Global Financial System and how
Global Business is conducted; they believe that small fiscal and monetary adjustments supported by
the right governmental policies will prompt consistent Global growth and after the Most Developed
Economies get out of the big hole of the last Great Recession these will be followed by the Less
Developed Economies: for these economists I would say just take a look at the last Great
Recession, at China and at EU (at countries like Greece, Spain, Portugal and Ireland) and you will
notice the difference this last recession was from the previous recessions in its hopelessness and
debt, just take a look at the US and its deteriorating Middle Class that has not stop being reduced
since the beginning of this Century for a moment, just take a look at the Earth environment being
very polluted and into Earth’s exhausting recourses and then put all of this together and estimate
how much economic growth is needed for that many economies to manage their fiscal reserves by
not getting into general poverty, and one of the most important questions you should ask
yourselves is if there exist real possibilities for industrial production that consists from the majority
part of anyone GDP could be expanded under the recent condition so it can start adding enough
fiscal reserves and to whom it should go first?