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26 sats \ 2 replies \ @Solomonsatoshi 19 Aug \ parent \ on: Bitcoin and Political Tribalism bitcoin
Switzerland vs China is hardly a fair example as Switzerland has acted as the neutral gold vault of European imperialism for centuries while China has only recently emerged from the humiliation and cultural and economic devastation resulting from the Opium Wars and the associated and subsequent impact of western imperialism.
How can you not admire the seemingly very democratic system that operates in Switzerland, but whether it can be replicated in other jurisdictions (that do not provide its unique role as a neutral state and safe haven gold vault) seems debatable.
It can be noted however that the highly centralised, collectivist and autocratic Chinese economy is has delivered the largest raising in wealth of any human collective/nation in history and that the future prospects of young Chinese are generally seen as much improved upon those of their parents while the future prospects of most western nations youth are mostly seen as inferior to their 'boomer' parents.
I contend that there is a lack of appreciation in both progressives and libertarians today for the principle that citizens owe some reciprocal duty toward the collective mechanism of the state as quid pro quo for the rights and opportunities the state provisions for the individual. As someone once said- 'Think not what your country can do for you, but what you can do for your country.'
How did China get wealthy, though? By relaxing it's control over resources. There are small wealthy nations all over the world, if you don't like the example of Switzerland. Clearly, dominating international relations is not required.
I believe you have the causality precisely backwards. Limited governments that don't interfere in civil society lead to vast prosperity. That wealth is very tempting to politicians who want personal enrichment, so the government grows. As we're seeing now in Europe, this eventually suffocates the underlying economy. It's killing the goose that lays the golden eggs.
I appreciate this civil disagreement, btw. It's all too rare online.
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The Chinese economy is fascinating in many ways and especially in contrast to the contemporary western economies.
The Chinese were first shocked and humiliated by the brutal impact of first the British and then other western imperialists who all imposed their will, by force, upon the nation of China. Almost uniquely however China was not completely seized and subjugated as were most other territories, because China was both too big and too deeply entrenched in its own perception as being the centre of civilisation- a claim it could rightly make some centuries earlier, and a belief that endures today.
The Chinese economic success is in part a result of liberalisation- allowing Chinese to compete freely and create wealth rather than being forced to work in autocratic and brutal collectives.
But the Chinese government understands and implements the hard lessons of the Opium Wars and western imperialism- namely the huge importance of government strategy in both internal development and external relations.
Central to this the Chinese government composed mostly of engineers, carefully manages each element of the economic structure. Most crucial to this is the issuance of capital via fiat- the Chinese government directs Chinese banks to in turn direct capital toward projects that will build Chinas wealth. There projects can be state owned or privately owned but the crucial point is capital is always subservient to the overall imperative and strategy of government. Hence such grand visions as Belt and Road.
In contrast western politicians are mostly lobbyists, lawyers and bankers. They are mostly directed by private capital- ie the banks and corporates who sponsor them into power. This is crony capitalism and has resulted in the decline of western infrastructure and wealth creation.
The majority of fiat debt finance issuance in the west today is directed into rentseeking non productive asset price property speculation, not productive enterprise or infrastructure.
In the west bankers have captured governments and they are bleeding them and their citizens to death.
Perhaps the Chinese will come unstuck with their highly centralised autocratic regime but they do still have the look of a rising power, while the west has the look and feel of decline.
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