Quit Modifying Capitalism

Profits should be pure, generated from price signals between buyers and sellers.

  • .. Bernie Sanders offers a fine place to start. “Do I consider myself,” he asked at an October 2015 rally, “part of the casino capitalist
  • .. Mr. Gore co-wrote “A Manifesto for Sustainable Capitalism,”
  • .. Thomas Piketty’s now largely discredited book, was published in English. Mr. Piketty called for a tax on dynastic wealth .. the emergence of a new patrimonial capitalism.”
  • .. Nobel Prize winner Joseph Stiglitz tried to one-up Mr. Piketty, complaining in a 2014 article for Harper’s magazine about “phony capitalism.”
  • .. The conspiracy theorist and occasional filmmaker Oliver Stone .. surveillance capitalism
  • .. It never ends. In 2012, Britain’s then-Prime Minister David Cameron talked about “socially responsible and genuinely popular capitalism” and blamed Labour for “turbo capitalism.”
  • ..  China practices state-directed capitalism. The jury is still out.

.. Drop the modifiers. There is only one type of capitalism that works, and it goes like this: Someone postpones consumption, invests his savings to produce a good or service, delights customers, generates profits, and then consumes and invests what’s left in further production. These profits are pure, generated from price signals between buyers and sellers, without favoritism from experts or elites. It isn’t hard to grasp.

.. Most of this was once self-evident, but in 2017 capitalism is losing the mind-share game. Where does all this end up? For something scary, skip the next Stephen King clown movie. Instead read up on postcapitalism and progressive mutualism. It sounds like Venezuela.

‘It’s a Mistake to Underestimate China’

The country’s massive infrastructure project is a blueprint for growth in the developing world.

..  Think of it as a hub-and-spoke model: China, the hub, builds infrastructure in countries around the world, the spokes, in order to facilitate trade. China is building roads, bridges, seaports, and airports in more than 60 countries to facilitate the import of raw material in order to further fuel its own economic growth while it searches for new markets. 

.. Unlike the West, China offers cheap loans, doesn’t ask questions about human rights or the environment, and doesn’t export its political ideology.

 .. China has a singular advantage: It is offering the countries where it is investing a vision for the future.
..  it seeks to replicate what it has done within its own borders for the past three decades—investments that have helped lift more than 700 million people out of poverty and into the middle class. During that time, globalization has brought low-wage but steady jobs to China in sectors such as manufacturing. 

China Could Sell Trump the Brooklyn Bridge

Xi has been brilliant at playing Trump, plying him with flattery and short-term trade concessions and deflecting him from the real structural trade imbalances with China. All along, Xi keeps his eye on the long-term prize of making China great again. Trump, meanwhile, touts every minor victory as historic and proceeds down any road that will give him a quick sugar high.

What world are we in? One in which we’re going through three “climate changes” at once.

  1. We’re going through a change in the actual climate: Destructive weather events and the degradation of ecosystems are steadily accelerating.
  2. We’re going through a change in the “climate” of globalization: from an interconnected world to an interdependent one; from a world of walls, where you build your wealth by hoarding resources, to a world of webs, where you thrive by connecting your citizens to the most flows of ideas, trade, innovation and education.
  3. And, finally, we’re going through a change in the “climate” of technology and work: Machines are acquiring all five senses, and with big data and artificial intelligence, every company can now analyze, optimize, prophesize, customize, digitize and automatize more and more jobs, products and services.

.. while China hails globalization, it imposes a 25 percent tariff on imported cars (while America imposes only 2.5 percent) and 50-50 joint ventures and technology transfers for big companies that want to gain access to China’s giant market. But China gets away with it.

.. plowing government funds and research into commercializing 10 strategic industries while creating regulations and swiping intellectual property from abroad to make them all grow faster. These industries include

  1. electric vehicles,
  2. new materials,
  3. artificial intelligence,
  4. integrated circuits,
  5. biopharmacy,
  6. quantum computing,
  7. 5G mobile communications, and
  8. robotics.

.. And Trump? On the change in the climate, he’s promoting coal over clean energy, like wind and solar, and has appointed climate-change deniers to all of his key environmental posts. While China is run by engineers, Trump doesn’t even have a science adviser.

.. “This will be wounding to one of America’s gems,” its institutions of higher education, Drew Faust, the president of Harvard, said to me. And it’s basically being done to cut taxes for the wealthy.

.. the Chinese are focused on the giant winds of change, and Trump is betting on his gut and a grab bag of tax cuts based on no take on the world, other than dubious trickle-down economics.

.. When you don’t know where you’re going any tax cut will get you there, any replacement for Obamacare will get you there, any wall will get you there, any trade concession will get you there.

.. I’m certain our economic system is better than theirs — in theory.

But China, with its ability to focus, is getting 90 percent out of its inferior system, and it has brought China a long way fast. And we, with too little focus, are getting 50 percent out of our superior system.