in response to free market in China

my friend Ethan told me...

But not really free market like we have here, regardless of how it looks. Making money takes precedence over the welfare of the people, as is the case here, so it's "free" in that sense. However because the members of the Communist party are totally on the take, it's all got oversight by the Communist party, which has it's pros and cons. The ... See Moretaxes are allowing China's military to explode in size and technological advancement which is NOT good, but on the flip side the gov has a strong grip on business, mostly to make sure the cash flow is maintained to The Party. If their bankers did what our bankers here did, they'd probably be taken out and publicly executed as it would be seen as damaging to their national security. (funny thing, it was damaging to our national security and what'd we do? Gave them huge bonuses!!!) They don't tolerate that crap. Here's the real kicker......interestingly, while we're in a severe recession, along with the rest of the world, China is experiencing about 10% growth....and it's because the gov. is standing by with a very large club (or noose or bullet) watching what the corporations do (plus we've sent all our manufacturing jobs there per the "free" trade agreements we have with them. Not so "Free" for the American worker, no?). So the oversight part of it I like very much. Makes for a much more stable system when the banks and corporations don't take irresponsible risks for fear of repercussions from the gov, a fear that is totally absent here. It doesn't allow for the crazy bubbles to develop and thus, while it's better for the cronies in the Communist Party, it's also much better on the people as their jobs aren't as risk the way ours are. I know they've felt the ripples of the economic downturn, but the masses didn't see their life savings go *POOF* and disappear. I'm afraid what is happening in China totally flies in the face of the Milton Friedman/Jeffery Sachs philosophy my friend. I know you're not a fan of regulation, but strong, decisive oversight/regulation that isn't written by lobbyists, as is proven by the Chinese system, is a good thing. And the rich are still getting richer in China regardless of regulation....as I'm sure you're seeing on your trip. The development is impressive!

A friend of mine in Hong Kong didn't understand some of his points...
Here are her questions

"Making money takes precedence over the welfare of the people, as is the case here, so it's "free" in that sense."

-I don't understand what he means here

A big business does business in China because the workers don't have as many rights, and the labor is cheap. So the welfare of the people aren't well represented. Ethan's opinion is that a totally free market leads to poor working conditions, such as in China. I disagree with him, but that's his point.


"The ... See More taxes are allowing China's military to explode in size and technological advancement which is NOT good"

-why not good to develop that? National security

Sure military is necessary; but not if it's already too big. I'm in favor of spending less on our own military; we have too many bases overseas.

"It doesn't allow for the crazy bubbles to develop and thus, while it's better for the cronies in the Communist Party, it's also much better on the people as their jobs aren't as risk the way ours are."

-why their jobs aren't as risk the ways yours are?

Ethan believes that communism (as corrupt as it is) helps the greater good better than a free-market. I believe differently.

"I'm afraid what is happening in China totally flies in the face of the Milton Friedman/Jeffery Sachs philosophy my friend."

- who are Milton Friedman/Jeffery Sachs

Friedman and Sachs are of the "Chicago School" of economics, I agree with a lot of what Friedman and Sachs say, but not all of it. I agree more with the "Austrian School" of economics which stresses more free market competition and less big corporation.