'..this just induces the government to resort to more authoritarian means, and attempt to exercise even more centralized power..'<blockquote>'..The problem is that where China goes is largely driven by a bastardized form of central planning which in turn is driven by China’s baroque political economy. In past years, China’s rapid growth conferred on the government a reputation for wisdom and foresight that was largely undeserved, but now more people are waking up to the reality that Chinese policy engenders tremendous waste, and that the country would actually be richer–and have better prospects for the future–if its government tempered its dirigiste tendencies.
..
Methinks that Mr. Xing is rather too sanguine about the ability or willingness of the Chinese government to sustain such highly distorting policies. They have done so for years, and are showing no inclination to change their ways. Efficiency is sacrificed to achieve distributive and political objectives, and the bigger and more complex the Chinese economy the more difficult it is for the authorities to predict and control the effects of their policy objectives. But this just induces the government to resort to more authoritarian means, and attempt to exercise even more centralized power. This is costly, but these are costs the authorities are willing and able to bear. Inefficiency is the price of power, but it is a price that the authorities are willing to pay.'
- Streetwise Professor,
A Policy Inspired More by the Marx Brothers Than Marx, November 29, 2016</blockquote>
Context<blockquote>
'..how socialism actually produces a superclass of elites and a form of socio-economic apartheid..'What Coal Tells Us About China's One-Size-Fits-All Approach to Economic Reform, November 28, 2016
China Has No Good Plan to Deal With Its Achilles Heel, October 7, 2015
'China has an historic Credit problem..''A multi-decade Credit Bubble is coming to an end .. It’s reminiscent of the buildup to the 2008 market crash..''Central banks in Japan, the U.S. and Europe tried multiple rounds of QE. That none of these programs were any more successful than their predecessors also points to empirical evidenced failure..''China now is a lot like Japan was in the 1980s, says Shilling..''..the Chinese government will simply let the debt party go on until it eventually collapses..'</blockquote>