Shifting the Chinese economy: Or how to miss the 900 lb. Gorilla in the room

Here's a controversial idea about China's economy that no one wants to hear

This is a vacuous discussion. It has all the merit of Monks arguing about how many Angels can dance on the head of a pin.

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This is a vacuous discussion. It has all the merit of Monks arguing about how many Angels can dance on the head of a pin. The problem here has little to do with the subject of the discussion.The problem China faces is socialism, and the top down control the CCP exerts over the economy. China is no longer a clean economic slate upon which the CCP can draw. As such, the CCP can no longer simply erase the slate and draw something new. Real people, and real things won't allow it. Before China was only drawing singular new business entities, one at a time. What it proposes today is to mostly wipe the slate clean, and start over. This will take a huge amount of time in the real world, unproductive time.


It is time for the CCP to realize that it must allow the economy to grow organically. It is also time for the CCP to relinquish other social controls or be faced with a people who are incapable of the entrepreneurship necessary to run such an economy. 


In reality none of this is possible. It is difficult to determine how the CCP will be able to craft a functional vibrant economy moving forward. The employee costs are too high vis-a-vis other nations employment costs, and so China is under pressure. Automation will allow money to continue to flow into China, but it will also result in mass unemployment, and unrest. 


China is in trouble, and in myriad ways. Perhaps it will be able to navigate these treacherous shoals. Perhaps not.