thanks for the comment. I agree China represents an alternative model for industrialization and modernization. There is no perfect one-size-fit-all economic system and each country needs to define their specific approach based on local conditions. But the financialized neoliberal model is proven defunct, even in the west. Don't believe in TINA - "there is no alternative" as Magret Thacher said.
A valuable viewpoint with associated basic data, well suppressed by western press. Thank you.
If an individual bases his happiness on reported government statistics, he will never be happy. The fallacy of modern macroeconomics — as you’ve cogently argued, emanating from the Chicago School — is the formula for making the hidden masses miserable (without their knowing it) while glamorizing the materialism of the Jews and their co-conspirators, the old money rentier class.
The COLA (cost of living adjustment) for 2025 Social Security payments in the US is 2 %. Thus, we are to believe the government that there is tiny inflation — over our own actual observations in daily life.
go and read shadowstats website which goes into the basket of american goods and how its calculated...here is the website https://www.shadowstats.com/. this person shows that the CPI when measured as per the rules from 1981, before they started fudgng the numbers and change the formulas is closer to 15-20% per annum in the USA
I also never understood the inflation data as reported. the basket of goods and services in CPI calculation is a black box and not consistently applied. then data such as core inflation further confused.
Common sense would tell you to look at your grocery bill, rental bill, interest payment for car loans and mortgages, etc to get a sense of the actual cost of living. And that has no discernable correlation with the official reports in the US these days.
The Marxist theory of inflation links the cause to inheritant contradictions in Capitalism. Particularly during times of instability (supply chain disruptions like in war or pandemic include in this) are usually triggers. Equity gaps grow because owners try to squeeze profits by not increasing wages. Oversupply of money is also a cause. There are many, but it really comes down to labor value exploitation.
GDP is a capitalist measure, when there is existing wealth surplus. There is existing wealth surplus when you sum the total accumulated wealth particularly including the billionaires. You can bridge equity gaps with zero GDP and yet achieve near utopian conditions for All. If there is still excess wealth and production (which there is), you can shrink the GDP for a time, to achieve SUSTAINABLE moderate prosperity. That's the goal we must demand to rstrive for globally. Growth is not always necessary for healthy socioeconomics.
The burst of the bubble was necessary for the five pedal plan to socialization to proceed. Passive wealth accumulation is never a good thing and is parasitic on a society. This bubble didn't burst, it was popped. Besides overall GDP, the national drive to eliminate extreme poverty has been overwhelming successful; real tangible improvments and real measurable results. Food security has been a mandate and reliance on fossil fuels for energy has been significantly mitigated. Proactive economic durability has been a strong focus and China is well on its way to being able to weather the economic effects of impending sanctions and embargos as the conflict with the global Imperialist slowly escalates. Military readiness is better... Over all China is better off for the housing bubble pop. There is still work to be done here but it's making good progress.
this should be the way human society progress. hopefully more nations will get the formula right and the first step is to discard the defunct neoliberal fake economics theory.
indeed. I wrote a piece on Xi's achievements. in my view, this reallocation of resources is a critical action for longer term benefits of the society. the China Experiment is an iterative process and I think the govt get the big picture right most of the time.
A superb article. I will link to this on my next substack post - since I consider it a "must-read". What I get from this is the difference between a "win-win" cultural consensus, such as we have in China - and the Western style "win-lose" neo-feudal system that dominates financialized countries like the US and the UK. Thank you for this. ,
"For the average Chinese, the top-line GDP growth number matters little. I suppose the feeling is shared by the average Americans"
Here I disagree. So much of US GDP is dependent on war & chronic disease, with profits going to the uber-wealthy, high GDP is kind of a negative indicator on quality of life here.
well said. exactly my point about seemingly high GDP growth in the US has not translated into better standard of living for the average American. to your point, they may represent higher cost of living and therefore negative to their well-being.
"For the average Chinese, the top-line GDP growth number matters little. I suppose the feeling is shared by the average Americans"
Since 58% of China's GDP goes directly to wages, it matters much more than 'a little,' because that's why Chinese wages–uniquely–have kept pace with national economic growth.
Chinese economy has slowed down significantly since Covid-19 outbreak??
Please don't repeat Western media nonsense.
Anyone who pretends to express growth as a percentage is deliberately misleading you.
Do the math: China's economy grew faster/bigger last year than in all but three years in the country's history, by $1.6 trillion (compared to America's $0.8 trillion).
Western nonsense indeed. The eminent, late British economist Angus Maddison predicted in the early 2000s that China’s GDP would exceed the US’s by 2015. For which he was excoriated, ridiculed and generally ostracized.
But on a PPP basis (the only robust way to compare these numbers) Maddison was proven correct. His work remains highly respected and actively cited, but his predictions on China are not discussed.
This famous observation remains valid: “if you desire to know who controls you, ask whom you are not allowed to criticize”, a very Voltairian thought despite its not being located in Voltaire’s extant writings. Hua Bin has written a convincing article on the Chicago school which is almost impossible to disagree with having taken Econ101 at an illustrious east coast university in the 70s.
Not sure about the food cost inflation. It seems that the food items I buy are running 5-10% above last year. That's particularly true for restaurants.
OTOH, the drop in housing costs has more than made up for it.
As for comparing so-called GDPs, the reality is that wealth = things, and there's a limited number of ways those things can be had. They've got to first be grown or dug out of the ground, and then often have their value increased by adding labour. Some economists call that the "real economy", and I'd say rightly so.
One tour of any major city (even a video tour) makes it plain that China's collection of "things" dwarfs any other country. The reason is simple. China's real economy rests on a vast, vertically integrated industrial infrastructure that likewise dwarfs all others, and most combinations of others (think G7).
Societies don't get rich giving each other haircuts or suing each other. GDP measures transactions. Not all, or even a majority, of transactions add to the wealth of a nation.
Lovely insight into the real Chinese economy by one living there so we can call them Facts. Thanks for that as I've never really paid attention to the Western narrative about China's economy and had been looking for where to get direct facts from someone on the ground there... Think I just found it 😄
And living in Nigeria and reading this article, I can't help but notice the jarring difference between China's focus on real economic growth and less emphasis on GDP numbers that Western nations and those who follow their playbook (including my country unfortunately)
I much prefer the Chinese Model I must say and I wish my Nation could adopt it as a focus on real tangible effects on most of the citizenry is a panacea to most of the ills bedeviling us and the other countries following the Western model I feel
thanks for the comment. I agree China represents an alternative model for industrialization and modernization. There is no perfect one-size-fit-all economic system and each country needs to define their specific approach based on local conditions. But the financialized neoliberal model is proven defunct, even in the west. Don't believe in TINA - "there is no alternative" as Magret Thacher said.
A valuable viewpoint with associated basic data, well suppressed by western press. Thank you.
If an individual bases his happiness on reported government statistics, he will never be happy. The fallacy of modern macroeconomics — as you’ve cogently argued, emanating from the Chicago School — is the formula for making the hidden masses miserable (without their knowing it) while glamorizing the materialism of the Jews and their co-conspirators, the old money rentier class.
The COLA (cost of living adjustment) for 2025 Social Security payments in the US is 2 %. Thus, we are to believe the government that there is tiny inflation — over our own actual observations in daily life.
go and read shadowstats website which goes into the basket of american goods and how its calculated...here is the website https://www.shadowstats.com/. this person shows that the CPI when measured as per the rules from 1981, before they started fudgng the numbers and change the formulas is closer to 15-20% per annum in the USA
I also never understood the inflation data as reported. the basket of goods and services in CPI calculation is a black box and not consistently applied. then data such as core inflation further confused.
Common sense would tell you to look at your grocery bill, rental bill, interest payment for car loans and mortgages, etc to get a sense of the actual cost of living. And that has no discernable correlation with the official reports in the US these days.
The Marxist theory of inflation links the cause to inheritant contradictions in Capitalism. Particularly during times of instability (supply chain disruptions like in war or pandemic include in this) are usually triggers. Equity gaps grow because owners try to squeeze profits by not increasing wages. Oversupply of money is also a cause. There are many, but it really comes down to labor value exploitation.
GDP is a capitalist measure, when there is existing wealth surplus. There is existing wealth surplus when you sum the total accumulated wealth particularly including the billionaires. You can bridge equity gaps with zero GDP and yet achieve near utopian conditions for All. If there is still excess wealth and production (which there is), you can shrink the GDP for a time, to achieve SUSTAINABLE moderate prosperity. That's the goal we must demand to rstrive for globally. Growth is not always necessary for healthy socioeconomics.
The burst of the bubble was necessary for the five pedal plan to socialization to proceed. Passive wealth accumulation is never a good thing and is parasitic on a society. This bubble didn't burst, it was popped. Besides overall GDP, the national drive to eliminate extreme poverty has been overwhelming successful; real tangible improvments and real measurable results. Food security has been a mandate and reliance on fossil fuels for energy has been significantly mitigated. Proactive economic durability has been a strong focus and China is well on its way to being able to weather the economic effects of impending sanctions and embargos as the conflict with the global Imperialist slowly escalates. Military readiness is better... Over all China is better off for the housing bubble pop. There is still work to be done here but it's making good progress.
this should be the way human society progress. hopefully more nations will get the formula right and the first step is to discard the defunct neoliberal fake economics theory.
indeed. I wrote a piece on Xi's achievements. in my view, this reallocation of resources is a critical action for longer term benefits of the society. the China Experiment is an iterative process and I think the govt get the big picture right most of the time.
A superb article. I will link to this on my next substack post - since I consider it a "must-read". What I get from this is the difference between a "win-win" cultural consensus, such as we have in China - and the Western style "win-lose" neo-feudal system that dominates financialized countries like the US and the UK. Thank you for this. ,
"For the average Chinese, the top-line GDP growth number matters little. I suppose the feeling is shared by the average Americans"
Here I disagree. So much of US GDP is dependent on war & chronic disease, with profits going to the uber-wealthy, high GDP is kind of a negative indicator on quality of life here.
well said. exactly my point about seemingly high GDP growth in the US has not translated into better standard of living for the average American. to your point, they may represent higher cost of living and therefore negative to their well-being.
"For the average Chinese, the top-line GDP growth number matters little. I suppose the feeling is shared by the average Americans"
Since 58% of China's GDP goes directly to wages, it matters much more than 'a little,' because that's why Chinese wages–uniquely–have kept pace with national economic growth.
There's that, too!
Very interesting piece. Thanks
Chinese economy has slowed down significantly since Covid-19 outbreak??
Please don't repeat Western media nonsense.
Anyone who pretends to express growth as a percentage is deliberately misleading you.
Do the math: China's economy grew faster/bigger last year than in all but three years in the country's history, by $1.6 trillion (compared to America's $0.8 trillion).
It has outgrown America's every year since 1951.
Western nonsense indeed. The eminent, late British economist Angus Maddison predicted in the early 2000s that China’s GDP would exceed the US’s by 2015. For which he was excoriated, ridiculed and generally ostracized.
But on a PPP basis (the only robust way to compare these numbers) Maddison was proven correct. His work remains highly respected and actively cited, but his predictions on China are not discussed.
This famous observation remains valid: “if you desire to know who controls you, ask whom you are not allowed to criticize”, a very Voltairian thought despite its not being located in Voltaire’s extant writings. Hua Bin has written a convincing article on the Chicago school which is almost impossible to disagree with having taken Econ101 at an illustrious east coast university in the 70s.
Not sure about the food cost inflation. It seems that the food items I buy are running 5-10% above last year. That's particularly true for restaurants.
OTOH, the drop in housing costs has more than made up for it.
As for comparing so-called GDPs, the reality is that wealth = things, and there's a limited number of ways those things can be had. They've got to first be grown or dug out of the ground, and then often have their value increased by adding labour. Some economists call that the "real economy", and I'd say rightly so.
One tour of any major city (even a video tour) makes it plain that China's collection of "things" dwarfs any other country. The reason is simple. China's real economy rests on a vast, vertically integrated industrial infrastructure that likewise dwarfs all others, and most combinations of others (think G7).
Societies don't get rich giving each other haircuts or suing each other. GDP measures transactions. Not all, or even a majority, of transactions add to the wealth of a nation.
Lovely insight into the real Chinese economy by one living there so we can call them Facts. Thanks for that as I've never really paid attention to the Western narrative about China's economy and had been looking for where to get direct facts from someone on the ground there... Think I just found it 😄
And living in Nigeria and reading this article, I can't help but notice the jarring difference between China's focus on real economic growth and less emphasis on GDP numbers that Western nations and those who follow their playbook (including my country unfortunately)
I much prefer the Chinese Model I must say and I wish my Nation could adopt it as a focus on real tangible effects on most of the citizenry is a panacea to most of the ills bedeviling us and the other countries following the Western model I feel