by Ed Duffy
I’ve never bought into the hype that China would soon become the world's global economic super power. They don’t innovate, they steal. They inflate their numbers by building highways nobody drives on to cities nobody lives in. It’s a sham designed to promote buy-in for statism. It’s a lie that western fans of big government are happy to repeat and promote.
However, reality is not on their side. Free markets work better than central control, every time. China (also N. Korea and Venezuela) has announced that it will soon begin using a new social credit system. Every citizen will be issued a card, or perhaps in the future an implanted chip or tattoo, that is linked to their profile. They will be rewarded for activities and choices the state likes and punished for those the state does not. Of course the state has a lot more punishment than it has reward, so I expect it will be a lot of stick and very little carrot. Basically, they’ve announced a rigid system for taking what free market dynamics exist in China’s economy, out of it.
This is the socialist/communist/progressive goal. They don’t believe in free market dynamics or people running around making their own choices all willy nilly. They honestly believe a small group of true believers would do a much better job determining the best resource allocation and behavior for everyone. Never mind that it has repeatedly been proven untrue.
This is a great experiment. China says they’ll have their system completely up and running by the end of 2020. One of two things will happen. China’s economy and individual quality of life will plummet faster than it is now, or I’m completely wrong and they’ll build the perfect society for the future that we’ll all happily adopt.
I hope the western press pays attention and honestly reports on what’s going on in China over the next several years. But you have to check numerous sources and read between the lines. It’s not just that writers have bias, they also have bosses and editors and people they’re trying to impress by showing how well they can parrot and paraphrase what they’ve been told. Business news gives you good information, not so much for the opinions, but for the data. Pundits tell you what people think they think. Cash flow shows you what they’re actually doing. Follow the money.