Richard D. Wolf
July 21, 2021 19:42 GMT + 10
The economy of the People’s Republic of China has grown much faster than the United States for decades. So is the average real wage in China. China is now the second largest superpower in the world, catching up with the United States economically, if not (yet). Its political influence has grown with GDP. Where the US main scapegoat was once the Soviet Union / Russia, China replaced the latter in that position. The world’s tourism industry is opening courts for large Chinese spenders.
China’s technological advances continue to surprise and impress most of the world.
The basic story here largely duplicates the story of the United States and the British Empire. The United States was once just a colony, humiliated and financially abused by its colonists. China suffered similarly in the hands of colonized abusers, but was able to evade its formal colonial status, with the exception of some excursions. The resentment and bitterness accumulated in the collapse of the American Revolutionary War from the colonial era in the latter half of the 18th century. The same thing happened in China in the middle of the 20th. In the war of 1812, the new United States proved that the British Empire could not undo the War of 1812. In the Korean War, the new People’s Republic of China proved that the US Empire could not undo the Chinese Revolution.
Independence economically caught up with the colonists throughout the 19th century, unleashing the rapid economic growth of the United States that overtook it. World War I showed a reversal of roles between the United States and Great Britain. At many levels-political, cultural, and economic-rulers and rulers have changed places. Throughout the 20th century, the United States banished (and replaced itself) the British Empire and other European empires, becoming a global hegemon. After a terrible stumbling block in the Great Depression, it responded with an explosion of social democracy in the New Deal. On top of that, the United States has promised to have other countries in the world copy what it calls “people” or “welfare” capitalism, which represents the epitome of human development. By the beginning of the 21st century, critics named British Prime Minister Tony Blair the “American Poodle” because of his enslavic subordination to the George W. Bush administration in the United States.
Similarly, China’s 1949 revolution unleashed an astonishing economic recovery from the series of tragedy of Japan’s aggression, World War II, and civil war. The economic recovery has enabled political maturity that transforms the Chinese Communist Party and the People’s Republic of China from Soviet and Soviet disciples to the equivalent of their own agenda, values, and interpretations of Marxism. Culturally, China has gained incredible confidence as the awakened giant regains hegemonic status in Asia and beyond. Due to changes in world affairs and constant depletion of the recovery phase of its development, China changed course with the death of Mao Zedong. It created a new Chinese economy and named it socialism with Chinese characteristics.
The economy not only achieved the unprecedented growth feats mentioned above, but also without providing most foreign aid to many other developing countries. The active hostility of the United States has imposed its deprivation on China. It also made independence the decisive foundation for China’s development. For the past half century, China has been a model for how determined developing countries mobilize their surplus for development. Through huge investments in infrastructure, industrial capacity, capacity growth, education and R & D, Chinese workers have created surpluses that are primarily used to build and expand the Chinese economy. This deliberate investment program continued after China opened the door to (1) foreign private capitalist investment, (2) the development and growth of private Chinese capitalist companies, and (3) partnerships between them. .. The Chinese Communist Party and the National Organization of China have controlled and manipulated the resulting acceleration of surplus production to invest in growth targets set by the party and the state. China’s surplus was secondly used to recreate the complex class structure of private and state-owned enterprises, as well as foreign and domestic private capitalists, and ultimately undertake market regulation and government economic planning. It was.
Today, the challenge China offers to the United States, and in fact to the capitalist world economy, is a model that deviates significantly from the private laissez-faire capitalist model that has been prevalent in world capitalism. In the latter model, the government is called to (Lacanes) only if the crisis strikes and threatens private capitalism. And government economic intervention is limited in scope and scope and is temporary in time. Minimal government regulation and minimal direct production of goods and services by the government are important rules.
In China, in contrast, the Communist Party and the state are far more intervening in economic problems by more regulating private businesses (foreign and domestic) and letting the state own and operate businesses. What is brought to the party and the nation is comprehensive control of economic development. Its control goes far beyond the role of government in Western Europe, North America, and Japan in its scope and duration. Having parties and states as a community to drive determined policies allows for the regular mobilization of most private and public resources to achieve the agreed goals. The most important goal is economic development to escape the poverty peculiar to South Asia. Mobilization to stop the spread of COVID-19 through blockades in Wuhan and elsewhere was another example. It was also technically comparable to and sometimes superior to the United States in many areas.
Keynesian economics enjoyed a surge in the field of economics when government policy made it possible to clearly support the survival of capitalism and the recovery from the Great Depression of the 1930s. Neoclassical economics began in the 1970s when government policy (neoliberalism) clearly allowed Keynes’s private capitalists to support the rollback of regulations and constraints (such as New Deal and social democracy). There is a possibility of returning to control within the profession. China’s remarkable economic growth over the last 30-40 years will be triggered and further made possible by the corresponding developments in the field of economics. These will involve rediscovery, acceptance and strengthening of government economic intervention as a means of achieving socially prioritized goals.
As the denial of China’s continued economic achievement loses its rhetoric, whether and how Western European, North American and Japanese capitalism can learn from China and coexist with China. More and more attention will be paid to the Chinese model to be explored. Demonization and threats (new Cold War) directed at China’s true and false political and cultural issues are also likely to decline in favor of mutual adaptation with China. Chinese leaders have expressed their view that, alongside state-owned and operated companies, they have and will continue to deal with trade and investment with private capitalists. It is the driving force behind their remarkable development and they believe there is no reason to change that approach.
Rather, it is part of the United States that is considering a military conflict with China as needed and now reasonably possible. If that happens, the Chinese will see it about what the United States really opposes: the continuation of Chinese Communist Party power and the social structure presided over by the Chinese state. Chinese leaders said it would fight it altogether.
China’s population is more than four times that of the United States. The total production of that economy can far exceed that of the United States within a few years. Its global political influence is growing rapidly. US allies must increasingly rethink their external relations in the light of China’s dominance. Meanwhile, US economic problems (such as unstable cycles, wealth and income inequality, political divisions, and explosive debt accumulation) are rising. The ability of the United States to change China, move it away from its traditional path and structure, and its ability to move it away from its traditional path and structure has proven unimpressive to almost everyone who pays attention.
Ratcheting up China’s demonization seems to be a poor and perhaps counterproductive reaction. Yes, it duplicates the Soviet demonization that helped effectively cover the New Deal rollback. However, the United States rolling back the progress of other countries is a completely different project from doing it domestically. Also, the world situation today (economic, political, cultural) is very different from what it was after 1945. Nevertheless, Biden’s repetition of Cold War policy since 1945 is much closer to the original policy than Franklin Delano Roosevelt’s economic policy. And it will prove to be the exact opposite of what today’s crisis needs.
(Richard D. Wolff is an emeritus professor of economics at the University of Massachusetts Amherst and a visiting professor at the New School University Graduate School of International Affairs program in New York. Wolff’s weekly show “Economic Updates” is syndicated. 100 More radio stations go to 55 million TV receivers via Free Speech TV. His recent three Books where democracy works is Illness is a system: when capitalism cannot save us from a pandemic or itself, Understand Marxism,and Understand socialism)..
Source: Independent Media Institute
This article was created by Economy for everyone, Independent Media Institute project.
(Image credit: Sunday Guardian).
Demonization of China by the United States and its allies can be counterproductive
Source link Demonization of China by the United States and its allies can be counterproductive