How Did Communist China Become a Capitalist Superpower?

The Real News Network has the interview How Did Communist China Become a Capitalist Superpower?

In his new book, “Competing Economic Paradigms in China,” Steve Cohn examines how China’s economic policy went from Maoist to “iron rice bowl” to neoliberal

I am always fascinated by how China pulled off this transition. I have observed their tendency to be “what worksists” rather than “capitalists” or “communists”. I am not sure I would classify their policies as neo-liberal in the same pejorative sense that is applied to the Clintons and most of the Democratic party. I think being a “what worksist” is a much better strategy than trying to make the real world fit into a single ideology.

In my previous post China’s Secret Source For Funding Infrastructure, the article referenced describes how China uses their fiat currency system in a much better way than the USA does. So, in that instance the neo-liberalism in the USA is much more ideologically closed-minded than whatever you want to call neo-liberalism in China.

One aspect of Western ways that they have adopted that I think is a mistake is to allow the emergence of a billionaire class. I do not know the details as much as I do about the billionaires in Russia, but I assume the Chinese billionaires arose from the same forces as in Russia. This is the sale of state owned enterprises at fire-sale prices in the effort to privatize. I do take note that there are some restrictions on these billionaires that you do not find in the United States. In China and Russia, some billionaires actually do end up in jail. In China some of them even end up being executed. I am not for executions, but I think that jail is warranted in many cases. I would much prefer the prevention of economic crimes rather than just punishment after the crimes have been committed.

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