I would note that between the 1980s until a few years a ago, China was very politically and economically decentralized, it even had partial local capital market fragmentations and the ability for local governments to engage in economic policy and even have local trade frictions, and it had very strong local parties with most policy action happening at lower levels and wide latitude for policy variability. All of that its quite similar to how the USA was for the first 200 years of its existence!
But Xi and the powerful special interest groups around him at the national center have been working overtime to try and change this and in recent years they've made headway... lets hope they are defeated!
The story of the ORIGIN of the Chinese miracle is one act of pure capitalism, by the people in one village, who risked their lives, as told by the Chinese themselves to secretly create an alternative to the commune. It’s told by the Chinese government.
"Before 1978, Xiaogang was infamous for its poverty. Almost all the local families had to roam the countryside begging after the autumn harvest. The village population was only 120 before 1958 and 67 villagers died of hunger during the Great Leap Forward from 1958-60. In Fengyang County, where Xiaogang is located, one in four people perished – 90,000 in all. 'But no civil servant suffered from hunger in our region,' Yan said...'
“Back then, even one straw belonged to the group,” says Yen Jingchang, who was a farmer in Xiaogang in 1978. “No one owned anything.” At one meeting with communist party officials, a farmer asked: “What about the teeth in my head? Do I own those?” Answer: No. Your teeth belong to the collective... There was no incentive to work hard — to go out to the fields early, to put in extra effort, Yen Jingchang says. “Work hard, don’t work hard — everyone gets the same,” he says. “So people don’t want to work.”
The villagers created an agreement to have private property. It violated government policy and as a result the farmers also pledged that if any of them were to be killed or jailed the others would raise his or her children until the age of 18. When the government found out about it, because the village prospered so much, instead of killing the villagers, they allowed capitalism to spread.
Yes, and it started with agriculture. Without an effective agricultural and food distribution system, modern progress is not possible. That is why I call it the First Key to Progress:
Compared to western nations,east Asian culture emphasizes less on leisure time/mental health ,and more on discipline/education/results based decisions.This is also a factor on their countries ECI rise
Yes, I would agree with that, but I think extended periods of prosperity also erodes work ethic and discipline among younger people who are born into prosperity.
This is an amazing article with a very subversive undertone. If "Communism that Works" works for China; then why can not "Capitalism That Works" work for America? Surely, having Capitalism is preferable over Communism. Otherwise; **IF** Centralization is the way to go, the Globalism is the final end goal. And Globalists do not care if you are a low-wage skilled worker or a high-skilled engineer. The key factor is lowering people with high incomes and raising people with lower incomes. Basically, removing Individuality and supplanting it with Collectivism. And Collectivism only works if *everyone* agrees voluntarily. Which, usually does not happen in a Communist Society. Is that Progress?
Thanks for the comment. I am glad that you like the article.
I am not totally sure that I understand what you are trying to say, but I think a form of decentralization is built into the American system: in government, economics and religion. I believe that it is a key to what makes American capitalism work.
Unfortunately, our government is losing it previous federal character and getting increasingly centralized. I write more here:
Fantastic article.
I would note that between the 1980s until a few years a ago, China was very politically and economically decentralized, it even had partial local capital market fragmentations and the ability for local governments to engage in economic policy and even have local trade frictions, and it had very strong local parties with most policy action happening at lower levels and wide latitude for policy variability. All of that its quite similar to how the USA was for the first 200 years of its existence!
But Xi and the powerful special interest groups around him at the national center have been working overtime to try and change this and in recent years they've made headway... lets hope they are defeated!
💯
I plan to write an article on this in the future.
The story of the ORIGIN of the Chinese miracle is one act of pure capitalism, by the people in one village, who risked their lives, as told by the Chinese themselves to secretly create an alternative to the commune. It’s told by the Chinese government.
"Before 1978, Xiaogang was infamous for its poverty. Almost all the local families had to roam the countryside begging after the autumn harvest. The village population was only 120 before 1958 and 67 villagers died of hunger during the Great Leap Forward from 1958-60. In Fengyang County, where Xiaogang is located, one in four people perished – 90,000 in all. 'But no civil servant suffered from hunger in our region,' Yan said...'
“Back then, even one straw belonged to the group,” says Yen Jingchang, who was a farmer in Xiaogang in 1978. “No one owned anything.” At one meeting with communist party officials, a farmer asked: “What about the teeth in my head? Do I own those?” Answer: No. Your teeth belong to the collective... There was no incentive to work hard — to go out to the fields early, to put in extra effort, Yen Jingchang says. “Work hard, don’t work hard — everyone gets the same,” he says. “So people don’t want to work.”
The villagers created an agreement to have private property. It violated government policy and as a result the farmers also pledged that if any of them were to be killed or jailed the others would raise his or her children until the age of 18. When the government found out about it, because the village prospered so much, instead of killing the villagers, they allowed capitalism to spread.
The Xiaogang Village Story, http://www.china.org.cn/china/features/content_11778487.htm
Yes, and it started with agriculture. Without an effective agricultural and food distribution system, modern progress is not possible. That is why I call it the First Key to Progress:
https://frompovertytoprogress.substack.com/p/the-five-keys-to-progress
https://frompovertytoprogress.substack.com/p/why-agriculture-is-the-humanitys
Compared to western nations,east Asian culture emphasizes less on leisure time/mental health ,and more on discipline/education/results based decisions.This is also a factor on their countries ECI rise
Yes, I would agree with that, but I think extended periods of prosperity also erodes work ethic and discipline among younger people who are born into prosperity.
This is an amazing article with a very subversive undertone. If "Communism that Works" works for China; then why can not "Capitalism That Works" work for America? Surely, having Capitalism is preferable over Communism. Otherwise; **IF** Centralization is the way to go, the Globalism is the final end goal. And Globalists do not care if you are a low-wage skilled worker or a high-skilled engineer. The key factor is lowering people with high incomes and raising people with lower incomes. Basically, removing Individuality and supplanting it with Collectivism. And Collectivism only works if *everyone* agrees voluntarily. Which, usually does not happen in a Communist Society. Is that Progress?
Thanks for the comment. I am glad that you like the article.
I am not totally sure that I understand what you are trying to say, but I think a form of decentralization is built into the American system: in government, economics and religion. I believe that it is a key to what makes American capitalism work.
Unfortunately, our government is losing it previous federal character and getting increasingly centralized. I write more here:
https://frompovertytoprogress.substack.com/p/one-radical-reform-to-solve-all-our
https://frompovertytoprogress.substack.com/p/why-we-need-decentralized-government