Comments by "Winston Smith" (@kryts27) on "State-owned enterprises and China’s economic plan after the 20th Party Congress" video.

  1. It"s a big government model. The CCP owning everything, every economic asset or asset nationalization. This had ironically been practised (by a much lesser degree than China) in Australia from the 1940s to the 1980s when assets such as telecommunication, railways, power generation, urban water utilities and banking (to a lesser extent) were nationalised, I.e owned and run by Federal and State governments. This however, failed to protect the Australian economy from recession and unemployment cycles, and being subject to energy costs imposed internationally, such as the 1970s OPEC oil price shock. Also, the government controlled industries were subject to bureaucratic control, were less efficient than enterprises in private hands (the technology and infrastructure stagnated under government control to a certain extent) and lead to price fixing in those industries (e.g. power generation) which somewhat failed to take into account the actual market costs to consumers and infrastructure running costs. Some of these problems were attributed to the Australian dollar fixed at a certain ratio to the US dollar in that time period, which lead to inflation in the 1970s and 1980s coupled with frequent recessions; alleviated by the Federal Treasurer Paul Keating in the 1980s, allowing the Australian dollar to float against the US dollar which unlocked international outgoing trade barriers and balance of payments, ten years after this policy was put in place. The Australian economy now has not had a recession since the early 1990s and the GFC in 2008 was hardly noticed here. The CCP state planned economy basically ignores market demand, and goes much further than any Australian government's did in the 1940s to 1980s in state owned assets (as did the UK before Margaret Thatcher become PM). Australia at that time (1940s-1980s) remained a capitalist country with only limited state assets control, but the CCP has taken this to an extreme degree and continues to intensify state economic monopolization of everything. This leads to 90% or more of all economic assets of everything (including, dare I say it, the people of China in a captive state slave system), being in the hands of one party state (at a national and provincial level). Because of the economic crises at the provincial level government that even the Central government can't cover up completely to the outside world, the Central government will be likely to seize the provincial government assets and the bad debt along with it. The world, and the United States in particular, now sees CCP China as a state monopoly, subject unilaterally to political fiat decisions by the dictator and the Politbureau, and hence investing in China or holding capital assets there (such as factories) is high risk investment which increasingly seldom makes a profit when the Central government again makes a policy statement which meddles in the economy, or in the supply of energy, affecting their business holdings. The actual collapse of the economy of China, plotted and put into place by the economic plans of the dictatorship have a dire effect in the state monopoly system, also makes a lie about the growth trend of China where economic contraction coupled with price squeeze and small business failures for the average Chinese consumer is ongoing and will last at least a decade long. Finally, the demographics of China will fall off a cliff within the next decade (thanks to the One Child policy) also drastically stagnating and contracting the economy of China, even more than the economy of Japan did. The future of growth for large countries lies in places like India, not China in the next 20 years time.
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