QUORA: Why does America keep on adopting old school capitalism
as war when the Chinese model of state directed capitalism
is working so much better?
by Saulius Muliolis, Amateur economist, self taught
Austrian school. Sep 11, 2021

Is China’s economy really working that well?
China has made great strides against poverty by adopting
some aspects of capitalism. But it is repeating some of
America’s biggest mistakes in a big way.

Neither country is adopting “old school capitalism” by
which I assume you mean laissez-faire.

Both countries are run more according to Keynesianism.
Big central banks manipulating interest rates & the supply
of currency, inflating bubbles. This is what is financing
the building of those ghost cities. It makes some people
very rich, at the expense of the poor.
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Robert Miller, Sept 29
Yes. And now they have their own bubble problem with the
epic failure of Evergrande. Yes, exactly repeating the
mistakes of US policies, agendas, and (mis)management of
the economy. And no one yet knows how far and wide that rot
in the Chinese economy extends and how far and wide the
fallout is going to be.

Which goes to one of the other significant distinctions
between he US & China. The US economy is far more transparent
than the Chinese economy, at every level. The Chinese benefit
from leveraging the transparency of the US economy to their
benefit while obscuring theirs in order to more extensively
manipulate & cheat, if not commit outright fraud. So yeah,
when one has the benefit of the ability to cheat & manipulate
at the expense of the transparency of others, as China does,
there’s an advantage to that. But is that really what one
wants their “advantage” predicated on? And that’s not exactly
a solid foundation upon which to build a sustainable economy.
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Saulius Muliolis, Sept 29
Considering America’s problems, “transparent” is relative.
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John Coleman, Sept 26
The Marxists believe that communism will arise from the
ashes of “capitalism” by which they mean cronyism, not
laissez-faire. So it makes sense according to their ideology
that they copy North American economic policy complete
with the cronyism.
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Peter Gaskin, Octo 23
I thought capitalism was predicted to have died in England
many years ago. I feel England uses a lot of intervention
along with capitalism. Seems to work…
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John Coleman, Oct 23
The UK is a social democracy with some elements of the free
market, but there’s no private property so no “true capitalism”.
Slavery “worked” as well.

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