ninurta wrote: Maybe we should leave capitalism and be communist like china. O wait, China gave up communism and is becoming increasingly capitalist because they realize they were wrong and capitalism is right.Err nope. Completely wrong. The people ruling China are much more intelligent than that. They do not believe blindly in capitalism, or else they would be in a completely different and much worse shape.
Instead, they have figured out to make a developing country develop. And thats by simply working with what you have : low wages but high productivity, slowly accumulating more knowhow and slowly progressing to better, more hightech products. Playing your cards right results in a nice way to make a lot of exchange which, in turn, can be invested to reach even higher productivity, always keeping the wages behind.
Or in other words, the current ideology of economics works nicely for developing countries ... as long as you know what you're doing. Instead of just believing blindly in really stupid thing like "work hard to attract foreign investors" or "lower taxes for the rich" - China did NOT do this, and thats why they are a success.
They really use Keynes, not Friedman. They use economic intelligence, not blind belief in riddiculous ecconomic dogmas that never worked before and never will.
The problem is that countries like the USA and Germany are still using the same scheme, despite the fact that one cannot invest much into them - they are already at the top tier of productivity you can ever reach. So what they really should do is make their wage ratio high and maximize their local consumption. Thats the only way to more wealth they still have open.
Thats why China does the right thing, but the USA and Germany do not.
Kasu wrote: Because a small, backwards socialist country cannot survive in the face of a globally integrated capitalist economy.If socialism cant compete, it cant compete. End of story.