The armchair quarterbacks at the New York Times editorial board came up with the Keynesian squared analysis that "It was inevitable that China’s economy would slow from its once turbocharged growth rates. But its leaders have made so many mistakes in recent months that they have turned what should have been a benign, natural slowdown into a chaotic descent" as if economies have direct levers to manipulate an optimum outcome.
My answer put in terms obfuscating its Adam Smith and The Wealth of Nations origin was:
At this inflection point in its economy China desperately needs a free press that audits business activity. For the past few years the claim of yearly economic growth has not squared with the reduction of commodity imports and trinkets exports. The current crisis is one of credibility which can not be jaw boned forward. It needs an impartial messaging system that allocates scarce capital to where the maximum public good is created.
So far neither Carl Marx nor Adam Smith were the brainchild to any kind of healthy living standard for the masses. China needs Adam Smith about as much as the west needs Marx. No one is brave enough to admit that the results of 19th and 20th century application of the biggest political-economic theories have failed, should be dropped, and a answer to sustainable, mutually beneficial school of thought does not exist. Natural science knows when a theory is wrong by experiment, Political-economic science refuses to let go of failed ideas.
ReplyDeleteSo China throwing journalist in jail is a good thing?
ReplyDeleteSo China throwing journalist in jail is a good thing?
ReplyDelete