Published on Howe Street, by blog owner, August 31st, 2011.
It is perhaps the saddest story ever told and it has been told over and over again for millennia. It is the never-ending urge to dismantle capitalism after it has created great amounts of wealth.
This has been going on since Roman times as can be seen in this quote from Cicero circa 50 B.C.:
The budget should be balanced,the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.
Sounds a lot like what needs to happen in the US today, no? In Rome they had economic freedom and it created a massive amount of wealth and innovation. The Government that grew up around it, however, slowly drained and warped the economic climate to the point where people, as many in the US are today, were unproductive and dependent upon the state for their survival. Soon after, it completely collapsed … as will the US.
CHINA – FROM COMMUNISM TO CAPITALISM TO SOCIALISM AGAIN:
China has been the most modern case-study of this reversion from communism, back to capitalism and again back to communism. Under Mao’s “Great Leap Forward” (government program names never cease to amaze in how egregiously opposite they are to the stated goal) tens of millions of Chinese died of starvation and the once proud Chinese culture was decimated to the point of subsistence living.
Finally, by 1976, it collapsed. Since then the Chinese Government has had to allow some economic freedoms. Either that, or starve the entire country to death.
The magic of economic freedom did its work incredibly quickly in China just as it did with Japan and Germany after World War II where it rebuilt two completely destroyed nations into the powerhouses they became by the 1980s.
Within the span of a few decades China went from being a nation of rice farmers to being a global economic powerhouse and is now the biggest creditor to the US – who has been going in the exact opposite direction.
But, now that so many Chinese have become so rich comes the backlash. The outcry that they need to spread the wealth. How quickly they forget what “spreading the wealth” did during Mao’s time … (full text).