While I still remain skeptical of many ways and methods we do capitalism the systematic tenants you point out are essential for any thriving economy. The way to make capitalism better is to fix it negative externalities not wreak the institutions that allow it to work like you point out. Some of the effects of the brain drain can be seen too. Scientists are going where they can find work the same can be said of the working professionals. It is impossible to tell how this will affect the US but let's hope it is not adverse.
Hi, Abdullah- yes. Important points. It is enlightening to compare the US and China along these lines. A few years ago, China had an economy that was much more oriented towards the same features you point out as advantageous. The results were explosive growth -- 10% per year for decades. That has changed under Mr Xi, who has reasserted central government controls over companies and industries. Now we see the Chinese economy growing at a much slower rate, in part because of governmental controls. Mr Trump says the US economy will grow faster as a result of his policies, but his major economic policies all tend to less growth.
Too much control and too little freedom restrict growth and innovation. Now, it might have some other undesirable outcomes, but there are other ways to control for those. I am thinking of growing inequality or market power.
I was covering the very basic points of economic systems in class yesterday and came across a slide about state owned capitalism. My intention when I made the slide two years ago was to point out how China utilized this structure but I found it to be nearly indistinguishable from the new policies of the United States. The slide referenced a "golden share" in the company ByteDance (the owners of TikTok) for the Chinese Communist Party. The U.S. government created this as a quid pro quo for approving the US Steel / Nippon Steel merger.
Unfortunately the Fraser Institute's "Economic Freedom of the World Index" is released on a lag - necessary given the amount of data they need to collect - but the tactics of Mr. Trump will be seen when the U.S. plummets down Fraser's rankings. Hopefully it won't be too late to reverse course.
While I still remain skeptical of many ways and methods we do capitalism the systematic tenants you point out are essential for any thriving economy. The way to make capitalism better is to fix it negative externalities not wreak the institutions that allow it to work like you point out. Some of the effects of the brain drain can be seen too. Scientists are going where they can find work the same can be said of the working professionals. It is impossible to tell how this will affect the US but let's hope it is not adverse.
Hi, Abdullah- yes. Important points. It is enlightening to compare the US and China along these lines. A few years ago, China had an economy that was much more oriented towards the same features you point out as advantageous. The results were explosive growth -- 10% per year for decades. That has changed under Mr Xi, who has reasserted central government controls over companies and industries. Now we see the Chinese economy growing at a much slower rate, in part because of governmental controls. Mr Trump says the US economy will grow faster as a result of his policies, but his major economic policies all tend to less growth.
Too much control and too little freedom restrict growth and innovation. Now, it might have some other undesirable outcomes, but there are other ways to control for those. I am thinking of growing inequality or market power.
Covers a lot of important ground without being superficial. Lots of important content here. Thanks for taking the time to spell this out.
I was covering the very basic points of economic systems in class yesterday and came across a slide about state owned capitalism. My intention when I made the slide two years ago was to point out how China utilized this structure but I found it to be nearly indistinguishable from the new policies of the United States. The slide referenced a "golden share" in the company ByteDance (the owners of TikTok) for the Chinese Communist Party. The U.S. government created this as a quid pro quo for approving the US Steel / Nippon Steel merger.
Unfortunately the Fraser Institute's "Economic Freedom of the World Index" is released on a lag - necessary given the amount of data they need to collect - but the tactics of Mr. Trump will be seen when the U.S. plummets down Fraser's rankings. Hopefully it won't be too late to reverse course.