The Rise of American Corporate Communism:Chinese Capitalism
Instituted by the Chinese government, the capitalistic reforms began in 1978 and have since extended and deepened. Progressively, they have debilitated many of the old notions of collectivism, socialism and corruption. The new version of capitalism retains many aspects of traditional Chinese values, mores and folkways. It is the better for it.
The Chinese people have always valued humility and frugality. As the new banking system developed, the government regulated it and the people saved a healthy portion of their incomes there. This habit sustained the investment capital resources to promote industrial export-led growth averaging 8% annually for a period of thirty years.
When the US banks failed that nation, their toxic assets plunged the world into a continuing recession. The nations halved their imports from China. This caused disruption particularly in the high-flying coastal regions. The government moved to replace the export losses with increased domestic consumption. They ordered the banks to promote an easy flow of funds from savings to consumption. The banks issued millions of new credit cards. The Chinese responded by dramatically increasing their purchases. Soon, China came out of the recession and resumed her historic 8% growth rate.
This interlude illustrates the enormous differences between the practices of capitalism in China and the USA. In the latter country the financial sector corrupts the government through an elaborate maze of bribes, lobbyists and influence peddling. The government has not produced meaningful social legislation since the 1960's. By 2008, the government could only bail out the banks from their criminal financial indulgences and beg them to loosen credit restrictions against small businessmen, home owners and consumers. Unemployment soared while millions of citizens lost their homes and their health insurance. Every day 122 human beings die from a lack of health care.
None of this could have happened in China. They routinely execute such murderous executives as America harbors in her boardrooms.
However, China is not without flaw.
"Tienanmen: Under the banner of the Federation of Beijing Autonomous Unions, students led the Chinese democracy movement in 1989. The federation became more active and public as spring turned to summer, and students began to occupy Tienanmen Square, a central space in Beijing. The regime mobilized troops from outside Beijing and brought them in on June 4, 1989. Most students had fled the square before the soldiers' arrival; nonetheless 2,600 were killed and 3,000 were wounded. Subsequent backlash was active, culminating on the third day as masses of dissidents held a central bridge in Beijing. Backlash casualties resulted from the deaths of 30 dissidents who were crushed as they lay in protest on railroad tracks in front of a locomotive. The state had ordered the engineer to drive forward."