It maybe the case now, but it would be amiss to say China didn't have high hopes for Pakistan before
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- Thread starter bd popeye
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It maybe the case now, but it would be amiss to say China didn't have high hopes for Pakistan before
Or the US wants to bomb Iran directly and needs China to force Iran to back down.
I would prefer the USA being made an example of to show all those vassal states who’s boss just to watch them squirm. Besides, once the USA goes, none of these elites would have the guts to do anything but bend over to the new power on the block. Plus with the way the USA is ruining itself right now, so I am curious to see how the others react to this, especially the UK that has bet all in on this madness
This is a very good video, that gives a thorough board based view about the future of Chinese economic development, and what kind of structural changes to expect, and how it will be done, and a lot other information that I cannot remember at the moment.
Mr Li even talked about a topic we were discussing here in the thread the last couple of days, the externalities, that arise from economic activity. Him bringing up the delivery drivers without health insurance from their employer. The state takes the burden of that externality.
The way to understand this video, is very simple I think.
It rests on that term, state intervention.
What state intervention means, in textbook economics of the modern day, is the government steps in with regulation to correct some sort of market failure, or some externality, or some sort of unfairness where someone freeloads off the system. (It all means the same thing.) Suppose heavy trucks cause potholes on the highway, so the government should tax the truckers something for road repairs. That would be state intervention to fix an externality.
What Mr Li is talking about, is not state intervention.
What Mr Li is talking about, is state directed investment (into the industries of the future). Essentially he talking about state capitalism, the Chinese model of development for China. And guess what? There is no textbook for that!
That is why China is such a fascinating place. They are trying to do something completely new.
In my view, and of course we can disagree, what the CCP is, they are the world's biggest venture capitalist. That is really what they are doing.
You see, the CCP is not trying to fix industry, as we can intuitively gather from that talk, it is a wholesale transformation of the economy is at work.
A rightist like me, just in awe of this! Because I know, those Chinese communist will do it right and get the job done. There is no better capitalists in the world than the Chinese communist. Just ask Ma Yun and Ren Zhengfei, all party members.
Now, what is this wholesale transformation of the economy?
Look no further than that smile chart in the video.
Basically the smile chart is the rate of profitability in the entire process of making a product. For example, a cell phone. The people who make the most money off a sale of a cell phone, are the people at the ends of the smile chart, and those are the designers and marketing, while the manufacturer makes the least.
To push the economy forward, more technological advancement needs to be done for the design part, such as Chinese companies designing their own semi-conductor chips, and more consumption which obviously connected to the marketing department. A note about consumption, that that requires disposable income, meaning they better not raise taxes!
Now, Mr Li did not say whether China will win or succeed or not. But the guy is so rooted in reality that we already know the answer.
Another case of "do nothing, win"
Financialized economy = no qualified labor left to maintain their military hardware amongst other things and trouble building new.
And it doesn't help that they overuse it on pointless autistic projections like maniacs due to acting like they are some kind of global police.
To be honest, at this point, what percentage of US overall military hardware is constantly perma out of operations, 1/4, 1/3, 1/2?
Even those that are seemingly in use are crashing left and right nowadays. And they want to fight some WW3? They are posers tbh.
And it doesn't help that they overuse it on pointless autistic projections like maniacs due to acting like they are some kind of global police.
To be honest, at this point, what percentage of US overall military hardware is constantly perma out of operations, 1/4, 1/3, 1/2?
Even those that are seemingly in use are crashing left and right nowadays. And they want to fight some WW3? They are posers tbh.
What a tremendous waste of money CPEC has been