This “genius” writes that China’s economy is proof that central economic planning works and claims the Austrian & Chicago school have been thoroughly discredited.
Fortunately for them [China] and for the Western world - which is essentially broke - China is NOT following the Austrian school at all, and they are so far ahead of the Chicago Quants and Austrian (supposedly) free-marketers that those two groups literally can’t comprehend how China manages its economy.
The free marketers won’t even admit that a managed economy is doable, hence their refusal to see a working model in action. They would rather have periodic booms and busts, than admit their economic model is fundamentally flawed, and fatally too.
China is miles ahead of the U.S. in economic management. It is an economy run by serious economists who learn from their mistakes - and ours - and who are not beholden to political partisanship and game-playing for the sake of the election cycle, from a public who is generally too stupid and selfish to understand how the real economy works.
The author seems to imply that wise and benevolent dictators can and will centrally plan economies efficiently and equitably. The incentive problem of the state is the elephant in the room.
I suggest that you write to the author and tell him to put his money where his mouth is, that is, take all of his retirement savings and invest them all in Chinese companies and nothing else.
This is a short video on one of China’s ghost towns. They also explain how every bureaucrat is pressured to meet growth rates and the way to do that is build houses nobody needs.
Wouldn’t N. Korea be closer to a planned economy? I watched this yesterday, and that country is pretty bizarre.
North Korea doesn’t count because we all know that their leaders aren’t wise and benevolent. Someone like Obama would turn that country into a paradise.
I read the article and his point seems to be that China raised required reserves to 16%, thereby staving off a housing bubble. That’s it - the rest of it is just empty rhetoric repeating how good their economy is. It’s like saying the planned economy works because somewhere a government lowered taxes from 50% to 20% and experienced economic growth. Whoever wrote this piece is blithering idiot.