Economic Update: China’s Economic Record and Strategy

Economic Update: China’s Economic Record and Strategy


This program
is a follow-up on an earlier program we did. That program was devoted to the Soviet Union,
that first example in the modern period of history of an attempt to build a socialist
society. I built that program and the one today around
the following assumption; that in many conversations about capitalism and socialism as alternative
systems mention is made, particularly by the older generations, of the Soviet Union and
today about the People’s Republic of China. These are looked at as examples (good, bad
or mixed) of what socialism is. They certainly are examples of what some of
the early efforts at building socialism look like and because they’re spoken about so often,
referred to and thought about, it seemed a reasonable time for me to devote some attention
to analyzing them. We did that with the Soviet Union in the earlier
program and today we’re going to do it with the People’s Republic of China. Before I jump into it let me be really clear
about how we are going to do it. This is not an exercise in “we’re good. They’re bad. ” Either way that comes from the Cold War
which was supposed to have ended in 1989-90 but clearly hasn’t, or at least the Cold War
is alive and kicking in the minds of some of our fellow citizens. This is too bad because it prevents the kind
of balanced approach of looking at the pros and the cons that a mature and intelligent
conversation ought to be about. Capitalism has strengths and weaknesses. Socialism is an alternative and it has strengths
and weaknesses. We’d all be better off if we were able to
talk about all of that without resorting to childish invocations of how “we’re good
and they’re bad”. You really ought to get over that at a certain
point in your life or else something’s wrong. We’re not going to go there so let’s go. Let me begin by talking about what economists
often talk about when comparing different kinds of societies and
comparing different countries. You might remember that Adam Smith’s great
work “The Wealth of Nations” published back in 1776 was about explaining why some
way nations are wealthy and some nations are not and to account for that, to understand
it. Part of that was a very generous impulse Mr.
Smith understood that poor countries would like to not be poor and wanted to learn what
the rich countries might be able to teach them about how to get to that situation. China was one of the poor countries at the
time Adam Smith wrote and it got poorer after that. By the 20th century (the last hundred years
or so) the Chinese people were not only the most numerous people of any country on earth
(they remain today the most populous country on this planet by far) but also very poor. The capitalist part of the world had grown
much richer in the intervening couple of centuries so they were even further behind as well as
being absolutely poor. So, they were focused, like most of the people
in the world are, on overcoming poverty. So that’s been their major goal and it’s a
reasonable place to start to assess how well they’ve done. If these numbers trouble you then please understand
it’s because you did not know about them before, not because there’s anything wrong with the
numbers. Over the last 20 years the People’s Republic
of China has increased its output of goods and services faster than any other country
on this planet. In the case of the comparison between the
People’s Republic of China on the one hand and the United States of America on the other
they’re not even close. Let me explain with some numbers. The rate of growth of output of goods and
services (the productivity of the economy, if you like) [for China] in 2005 was 11%. In 2017 it was 15%. In 2010 it was 12% and it has slowed down
since then. Over the last year it was a mere 6.4%. If you wanted to average it out it was probably
in the neighborhood of 10-11% over the last 10, 15, 20 years. By comparison, let me give you the numbers
for the United States of America. Its average growth rate in the 1950s and 60s
was 4%. In the 70s and 80s it fell to 3% and in the
last 10 years it has averaged 2%. In the latest year it was 3.2%; half of what
it was in China, but for most of the last 20 years the rate of growth of China has been
2 to 3 to 4 times that of the United States. That, in a simple way, tells us something. Number one it explains why we’re reading and
hearing so much about China; because they have become the second most important economy
in the world because they have achieved these extraordinary rates of economic growth. Number two it will help you understand something
else about the people of China: they are not about to be pushed around, neither by Mr.
Trump nor anybody else because they have the economic strength
to resist. Number three, if you’re the government of
the People’s Republic of China (and that is a government in which the Communist Party
of China is dominant) you are hardly about to change the way you organize your economy
given how well it has been doing. Governments change either willingly or under
pressure when they’re doing badly for their people. It makes people bitter, angry, critical, and
liable to push for change. This is something Americans no doubt understands
since it’s a situation we face here in American capitalism, or in Europe with
their capitalism that’s not doing really well for an enormous number of people. As a consequence, criticisms are rising. You see a rediscovery of socialism, for example,
here in the United States, you see the yellow vest movement demanding fundamental changes
in France and you see all kinds of other movements we don’t have the time, today, to go into. I like to deal with them occasionally, at
least, in other programs. This is already enough to explain to you why
the People’s Republic of China is the economic phenomena of our time. Let me turn next to the second most typical
statistic to look at if you’re comparing countries and you’re trying to understand what’s going
on with the development or not, of wealth and poverty. This number is called the “real wage”. Here’s what it means: how much can people
afford to buy with the average wages they get. To understand that we look at two numbers. First, how much money is given to people per
hour for the work they do and on the other hand what are the prices of the things they
buy with the wages they get. In other words, if your wage goes up by 10
percent but so do all the prices you face, you’re not one bit better off. You got 10 percent more money but it doesn’t
buy you anything but the same quantity of things it bought you before. When we adjust the wages workers get for the
prices they have to pay, we get what’s called the “average real wage”. What you can afford with the money you get. Let’s compare the last 20 years in the United
States that is this century so far in the United States with that in China. In the United States real wages (the average
wage of the American worker) has stagnated. It has gone nowhere. That’s true not only for the 20 years we’re
talking about of this century, it’s true for the last 25 years of the 20th century. Here’s a statistic for you to think about
as an American if you’re watching this program from the United States or listening to it
on the radio here. In 1973 the wage of the United States, the
average wage of an American, was able to buy (here we go now) MORE things than it was in
2018. The real wage in the United States is less
today than it was then. It’s not less by a lot but it means that over
the last 40 to 45 years Americans who have worked harder than ever, who have been more
productive than they ever were across that time, have not shared in their greater productivity. Their real income, their real wages have not
gone up. The real hourly wage in the United States
is lower today than it was in 1973 and that is something to think about. But now comes the Chinese story. Over the same period of time, the last 20-25
years, real wages in the People’s Republic of China have quadrupled. Let me tell you that again. The basket of goods and services that an average
worker gets in China for an average hour of his or her work is four times greater today
than it was 25 years ago. Yes, Chinese wages remain below the average
in the United States because they were and they still are a poor country when you divide
their total economy by the enormous number of people that live in that country. But if you want to understand why the people
of China support their government here’s a clue: their real wages went up four times
over the last 25 years in a society led by a government in which the Communist Party
is the dominant political force. Let me pause to let all of this sink in. This is not about whether you like these numbers
or don’t this is not about whether you’re critical of many aspects of Chinese society
or you’re not. I myself find things in China I admire and
things in China I would like to avoid. I try to look at the strengths and weaknesses. But when it comes to the economics of their
socialist system and I compare its performance over decades to this moment, there is no contest
about which system has served its people better in terms of economic growth of output. The economy as a whole and the real wages
of the average worker in that society. Is China an example of equality? No. It has a great deal of inequality. There the United States and China have something
in common; high inequality that’s actually getting worse. We will continue after the mid program break
to talk about what’s going on in China so that we understand what the internal
mechanisms are that explain this performance. Before breaking let me remind you, please,
to make use of our websites: rdwolff.com and democracyatwork.info. Please subscribe to our YouTube channel. Just go to youtube.com/democracyatwork. And finally I want to thank our Patreon community
for the support it continues to provide. We are grateful and appreciative. We’ll be right back. Welcome back friends to the second half of
today’s economic update. We’ve been talking about the People’s Republic
of China. In the first half today we spoke particularly
about its performance as an economy: its rate of growth in production of goods and services
on the one hand and the rate of growth of the average real wage of a Chinese working
person on the other. Having shown the remarkable success of their
economic growth program in both those ways I want to turn now to how they did that. How do they organize their economy and particularly
in what ways differently from that of the United States or Western Europe that might
help us account for their extraordinary performance? First, and perhaps most important for many
of you that are watching and listening, is to understand that the Chinese economy for
quite some time now has had a mixture of privately-owned enterprises and state-owned enterprises. wYou might think of it as a mixed economy
between private and state. It is also true over the last 2025 years that
the role of the private sector has been enlarged, relative to the role of the state sector. However, that has to be made a little more
complicated by noting that the Chinese, in managing this balance between the state and
the private, give the dominance to the state. They say that the state-owned enterprises
will always be the leading sectors, the main industrial groups within the Chinese economy. There’s plenty of room for private enterprises
but the leading part of the economy will be the state. Why are the Chinese doing that? First and foremost, they are doing it because
it’s their way of learning from the experience of the Soviet Union. When the Soviet Union’s kind of socialism
(in which the state was overwhelmingly dominant and the private sector
was really quite restricted), when the Soviet Union collapsed in on itself in 1989 it went
through an extremely quick transition from an overwhelmingly state industrial sector
to an overwhelmingly private one. This was pushed by the folks in Russia who
wanted these changes, it was pushed by foreign advisers led by Jeffrey Sachs now of Columbia
University. It was called a kind of “cold shower treatment”
or sometimes “shock therapy” as a way of fixing what was understood to be wrong. The Chinese analysis is that the suffering
of the Russian people in the 30 years since then (the failures of the Russian economy
in the 30 years since then) had largely to do with the excessive speed and the excessive
extent of what happened in the Soviet Union. They have been determined not to repeat that
mistake. In other words, their communist party’s plan
is to make the transition slow and limited. Yes, foreign enterprises can come in if they’re
private capitalist enterprises, and many have. Yes, Chinese people can set up private enterprises
as many have. But the leading sectors of the economy will
remain state-owned enterprises running the program of economic development that the state
organizes under the leadership of the Chinese Communist Party. It’s important to understand that the Chinese
kind of socialism is itself a learning process in which what happened to the Soviet system
is playing a major role, in this case of what not to do in the way that happened in the
Soviet Union. But it is not the only factor that’s involved. To continue the comparison with the Soviet
Union, because the Soviet Union was the first socialist country and completely isolated
after the 1920s, surrounded by a world that hated what they were doing, they couldn’t
and didn’t find a way to build their economy by exporting. They could not produce for the
rest of the world, make a lot of money that way and use it to develop their own economy. They had to do it pretty much on their own. The Chinese have taken a different path there
as well. Early on the Chinese decided (at the end of
the last century the beginning of this one) to hitch their economic wagon to the world
market, to become the producer of goods and services for sale around the world. In order to do that they had to build industries
that produced what the rest of the world did either at a higher quality or at a lower price
or both. Basically, they’ve done that which is why
Chinese automobiles join Chinese appliances, Chinese clothing, Chinese you-fill-in-the-blank
is everywhere. Most of what you will see in an average Walmart
is made in China and there’s a reason why Walmart stocks up on Chinese goods, and they’re
not the only company of course. So, they hitched their wagon to the world
market and they’ve done very, very well because of it. The Russians couldn’t do that and the Chinese
could and they did. Here’s another thing: private capitalists
didn’t go into Russia hardly at all but they have been rushing, stumbling all over themselves
to get into China. The Chinese understand that and they offered
Western capitalist enterprises the following deal. We need your technology, the Chinese said. We need your money, your capital to be invested. So here’s the deal. We offer you, we will provide you with well
disciplined, efficient, hard-working workers at a very low wage (the one that we have here
in our poor country) and we will build the roads and provide the supports for you to
be able to make a lot of money producing here in China more cheaply than you could ever
produce in America, or Western Europe, or Japan etc. All we ask in exchange is that you share your
advanced technology because that’s why we’re doing this with you. You will have access to our workers and you
will have access to our customers to sell your product, but we want your technology
and your capital. Nobody put a gun to any capitalist enterprises’
head. They made the decision to accept the offer
of the Chinese because it was profitable them for them to do so. If it meant that they laid off workers in
their home countries, these capitalist enterprises, they could care less. They did that. They abandon whole industries. They abandon whole communities. That’s how capitalism has always worked only
this time, with this destruction of working people in the West there was a boon to the
workers of China, which is why I gave you the numbers about the average real wage. So, the Chinese used the world market. The deal they struck with private capitalists
and the lessons they learned from the Soviet Union to organize what they call a special
Chinese kind of socialism that allows for private enterprise (a considerable amount),
allows for market dealings (a considerable amount), but controls from the top through
the state-owned enterprises the leading or dominant sectors of the Chinese economy. The last part of the show for today is to
give a little historical context China is an old civilization and a quite homogeneous
civilization. The Han people are the dominant ethnic group
and other ethnicities are small and scattered. The Chinese are a proud people with a long
history of a pretty well-developed civilization which at various times over the last couple
of thousand years was much more developed than civilizations in the West were. So for them it was doubly embarrassing, humiliating
is the word they used, to fall under the control of foreign colonialists in the 17th, 18th,
19th century from Britain, from France, from Germany, from the United States. It culminated in a horrible moment of rebellion
called the Boxer Rebellion at the end of the 19th century when a futile effort by the Chinese
authorities to push back against the Western imperialists was defeated. China was never made into a colony. They’re very proud of that. But they had to give away Hong Kong and parts
of their country to the foreigner who controlled them, who settled their merchants and other
companies in these special territories where they didn’t find
themselves subject to Chinese Authority or Chinese law. The Chinese, as a people, made a commitment
to find their own way, to break, led by Sun Yat-sen at the beginning of the 20th century. And when that wasn’t sufficient and when they
were added the humiliation of the invasion of their country by the Japanese in the 1930s
a revolt of a much deeper sort took place in China. They were successful. At first it was an alliance between the nationalists,
who wanted to build up a capitalist China. and the Communists, who wanted to build up
a socialist China. But they worked together to push the Japanese
out. By 1945 they had done so, together with the
fight of the United States and its allies against Japan. As soon as World War II was over the alliance
between the capitalist / nationalist Chinese under their leader Chiang Kai-shek ended up
in a civil war with the Communists, their former allies, led by Mao Zedong. A civil war broke out from 1945 to 1949 ending
with the decisive and complete victory of the Communist Red Army. The Chiang Kai-shek people left the mainland
of China and went to Taiwan where their descendants still live and still imagine that they, on
the little island, are China whereas the vast mass of people on the mainland are something
else. No one hardly is left in the world who shares
this delusion. From 1949 to now, 70 years, is historically
not a long time. But from a decimated, poor, colonialized country
China is now the number two economy in the world. It is an incredible achievement. Not to understand that, not to understand
what this means in the minds in the feelings and in the pocketbooks of the Chinese people,
not to understand that it has involved moving four to five hundred million people off of
the poverty-stricken countryside into the urban industrial jobs along the coast of China,
these are misunderstandings that make no sense. You are not helped in understanding, let alone
fixing the problems of the world, by living in the delusion that the things I’ve tried
to get across today are not the case, don’t have to be taken into account and somehow
don’t matter. Unfortunately, in the mainstream media of
the United States, and in other parts of the West, most of this is simply not reported
on, not covered, evaded. That doesn’t do anyone a service unless it’s
the people who run the kinds of society China isn’t, who are afraid of the model and the
example China offers. For my part it is our effort, here at economic
update, to provide the kind of information on the basis of which rational decisions can
be made about making the world a better place. I hope you have found these in-depth analyses
of the Soviet Union and China a useful part of the ongoing debate about capitalism and
its alternatives, the number one of which is varieties of socialism. Thank you for your attention and I look forward
to speaking with you again next week.

100 Comments on "Economic Update: China’s Economic Record and Strategy"


  1. How would Adam Smith’s idea applied to enslaved and colonized people who were essentially denied rights to prosper? When human being was sold like potato what was Adam Smith thinking? Or was he thinking non-whites aren’t human beings and dont deserve a society? How come Adam Smith was oblivion to injustice forced by one group of people on other? Wouldn’t

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  2. Let us talk about Honduras – meaning the economy of citizens of Honduras – not the wealth of Honduras that American multinationals LOOT with an American puppet to rule and oppress the citizens

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  3. You failed to consider the COST…….. SMOG so MASK are necessary to breath in MANY cities! 2nd please name ONE river in the US, that is anywhere as FILTHY as rivers in China. There is a HUGE environmental toxic cost, you failed to mention. …….. Put ALL the facts on the table!

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  4. The main objectives of Dengxiaoping are simple: lift people from poverty by all means and liberalize & develop productivity.

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  5. China and USA, comparing to old Europe, had a cick start both of them! White people came to North America leaving the drag of Europe's middle age behind, they could start with white sheets, make new progressive laws suitable to make the American dream come through!
    …………………….Chairman Mao, erazed Chinas midle age patriarchal system, Mao, without knowing it gave this way his country much the same conditions the whites had in North America, white, new sheets, the same kick starter mechanism, pluss the Chinese are busy like ants!

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  6. This is perhaps an accurate account of China's economic rise, but it ignores China's imperialistic influence over Tibet and other places. As long as China does not take its hands away from Tibet I find it hard to approve of the CCP.

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  7. Jesus said : " Man does not live on bread alone but on every word that comes from God " China has learned the American model and are to congratulated . But when it comes to morality China has alot of abuses . We see how they persecute Christians . If they do this out in the open now imagine if and when they are the leading economy in the world . People have suddenly woken up ! Not because of Chinas great economic performance for which she should be congratulated , but because of MORALITY and should she lead the world in the number one place , the persecution will continue and be horrendous . Chinas political model now has President Xi in for life . No elections ! Think about that !

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  8. You say that the Chinese worker has profited by capitalism by having 4 times the wages over 20 years . Well good for China embracing capitalism to take it out of poverty . But look deeper and you will see that it was America who made China rich . America shipped her manufacturing to China , lucky China ! And America bought all those goods that the Chinese made with her technology at a trade surplus of 500 billion dollars every single year for those 20 years . America PAID for China's success . NOW America wants back the goose that laid the golden egg . America wants back her manufacturing . America wants to produce her own goods and invest in HERSELF . Lets see who wins now . Lets see who has the new ideas for the products of the world . I am betting on America . Why ? Because it is a culture . And Americans have it ! In the end it is the Americans who will sell products to the Chinese ! And especially the rich Chinese middle class . What a market !

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  9. Just some rough mathematics here . 10 or 11 on average as a growth rate from a population of 1.3 BILLION . Vs 3 to 4 percent on average from 300 million. 1.3 billion divided by 300 million is 4.33333 x that by 3 to 4 percent on average is about 16 to 17 percent. Was just of the top of my head . The worker in China would be somewhat better off then the American workers that are IN work . Milton Friedman has a lot to do with the loss of workers rights and wage reductions. I wonder if he never existed and unions in America kept growing and growing whether the Chinese would have been the leading force in the world economy ? In my estimation the USSR failed because WW2 was fought on their continent and not in the America’s . The US was left fairly untouched industrially speaking. The USSR on the other hand was nearly destroyed its industry was in turmoil. It’s interesting to say the least . The one thing you forgot was that Chinese workers generally produce a very substandard product. Called crap by any western tradesmen which falls directly under the heading of planned obsolescence and fashionable consumption. Thanks Professor

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  10. part1 wages, well if I lived in a cardboard 10×10 sise house rode a bike and fish and rice every meal my wages would seen high but that would be considered homeless oe on welfair. the usa is not a welfair country we have cars and electricity

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  11. Russian state is most like a slave country your told what job you will do and what you will be paid no freewill

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  12. big word growth in china. 40 years ago china was like the usa in the 1600s then  industry steal railroads ships, and china is doing it 300 years lator with a country of slave labor

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  13. Well, the communist was not working in east Europe, China. Why debate it? You are stupid. China now improved their wealth by adopting capitalism.

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  14. Nevermind that China and the US are totally different types of economies; Tiananmen Square is Chinese democracy at work.

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  15. I know this very beautiful female Chinese surgeon with beautiful porcelain white skin and very black hair. Her name is Chin. Chin is married to a really cool muscular black American pizza delivery man with a great smile from Mississippi.Once whilst eating Fried Bee Pupae, Chin told me and her black husband that she agrees with the Trump tariffs on China and that she is praying for the better treatment of Christians in China.

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  16. It's surprising to see such an unbiased analysis about China. Totally agree with Prof. Wolff's comment that no one put a gun on those capitalists' heads forcing them to do business with China. It's their chase for profit resulting such a situation today. When the big capitalism moves out of US and shut down domestic factories, their government failed to see the outcome of it in the future. Smart government would choose to plan for the long term instead of complaining and blaming others.

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  17. Since the Ming Dynasty, China has fallen behind the West. The West belongs to the maritime civilization and lacks territory and technology. Therefore, external expansion and exploration are inevitable choices. China has large areas of land that can be cultivated and a large population of labor, so there is less demand for external resources. Ancient China used to have a lot of technology, but due to the lack of competition and a peaceful internal environment, the emperor lacked a sense of worry about the enemy from outside. So China lost its first and second industrial revolution.

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  18. Professor Wolf has a great eye for the low hanging fruit. There is so much more that divides China economics from those of the USA. Federal government, 50 state governments, taxes and laws from each, prisons full of those in disagreement of the laws, lawyers, politicians all the above only interested in their own bigoted economics. On a percentage basis I bet the USA has ten times as many lawyers as China. And only ONE political party. China hasn’t worried as much about the snail darter population or building the biggest hydroelectric dam in the world or until recently other ecological disasters. USA brand of socialism is mostly bigoted hatred and money inequality.

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  19. You learn nothing from the Western media. They have their own agenda.

    They've been predicting the down fall of the Chinese economy for decades. Every year one of them will predict China will collapse.

    When Indian GDP finally got going , they come out with India is going to overtake China bc its a democracy.

    Then the Indian GDP growth slows and the Chinese GDP despite trade issues and many problems is still respectable particularly as we should do well to remember the base rate in China is at a higher level of development.

    This is not to be critical of India but clearly there are advantages to the Chinese political system as oppose to the fractious nature of democracy and their capture by interest groups.

    This sacred cow of democracy and its preaching it endemic to US who likes to proselytize.

    BUT China is not the only country that bucks this trend.

    Frankly it learnt how to do it from Singapore.

    Although a Democracy in name, Singapore is a one party state since its independence.

    And when Deng Xiao Peng opened China (a great man), the lessons he took in the most was from Singapore.

    OTOH look around you at many countries with democracy and how they have failed in the developing world (Philipines had a higher GDP and educated work force than say Singapore during Singapore independence.

    This Western minds are slave to their own dog,ma.

    They are inflexible and cannot break out of the rigidity of their mental cages.

    I'm not saying China is anyway perfect but clearly unless you are dumb and deaf and blind, they are making HUGE progress both in human development and economic well being.

    Wake up.

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  20. 00:48 Can you define "modern history" ?
    1789 the French revolution was the first attempt to establish a socialist society !
    The Russian revolution of 1917 was just a slightly bloodier "copy and paste" of the French revolution…

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  21. No, this is an exercise in we are bad and they are good. I stopped watching at approximately 2 minutes.

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  22. The products we are buying are vastly superior to anything we could buy 40 years ago at the same price. RIGHT ON America. You're the best. Alot of this talk is bull shit. China was running the mile in a time of 20 minutes. America was running the mile in 5 minutes. China knocks 1 to 2 min.s off and America knocks 10 sec.s off.Percentage wise China is doing great. Now remember this….If a nuclear war happened, and , one billion people were killed in China, China would still have more people than the USA.

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  23. OK, 14 MIN. 29 SEC. That's enough for me. The greatest country that has ever existed on this planet is being explained by someone who would never move to another country and has FREEDOM OF SPEECH, to show that even morons have an opnion. I would love to debate this idiot or anyone else who follows his irrational, illiterate, brainstorming ideas based on getting attention.

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  24. Brilliant analysis of the historical political and economic factors that brought China to the present day.

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  25. taiwan is in the top 60 populations by country. bigger than almost 130 other countries. maybe not china, but its own. anyway..kudos for the economic development, but i'd take the development of other countries over the ccp. as for the us…well…no argument there…cause they a mess.

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  26. Okay, so this is gonna seem a bit silly. But what kind of economy is characterized by infinite resources and labor?

    Because if general automation works out that's the kind of economy we are gonna need.

    Do you even need an economy under those circumstances?

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  27. Real wages.

    Fell in part in the USA due to the Capitalist drive to automate.

    Rose in China because the selling point of China's entry into the world market was low wages… too low to make automation feasible.

    This will change quickly as general automation advances. China will have gotten the technology that enables a move to full automation… the West will have paid for the real rise in Chinese workers labor by shopping at Walmart and driving the Western middle class closer to poverty.

    All this was accomplished by Western individuals behind corporate cover to the detriment of the societies that birthed them.

    We call these people billionaires.

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  28. ussr system has a spirit of china communism … all will be converted towards Christ's Work … Vatican has the most effective Divine System/Government/Communion

    Mr. will have to rectify this yt documentary's analyses

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  29. In the 1970s socialism ended in China. They started capitalism. That's how they became the country they are now. Now that Xi is in office he wants a Socialist country with Chinese characteristics.

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  30. Before I even listen to this…& I enjoy your talks & insights…I disagree that it is not possible to say that China & Russia are bad, without automatically saying that we good. We all have problems. But, they are bad in terms of their lack of personal freedoms, their controlled elections, and the presence of thieves in the government who enrich themselves at the expense of the people. Period.

    One of the biggest mistakes you make is not completely divorcing yourself from these oppressive countries way of governing by an iron fist. You would be better off if you started of, & finished, by saying that those countries got it wrong, and that they are nothing like the ideal of socialism or Marxism. You ridicule our politicians for lumping socialism with communism. But, you refuse to bash Russian/Chinese communism. That is as ridiculous as refusing to bash Nazism, because there were some good aspect to it also.

    Note that this is coming from someone whose grandparents were early communists (pre-revolution) from Russia. To them, the choice between the Tsar and communism left them little choice. But, when they returned to Russia in the early 30's…potentially to stay…they lasted a year and fled back to the US, where they were involved in promoting coop housing in NYC, etc. The point is that you can promote socialism without apologizing for brutal, oppressive societies like Russia/China, etc. Whose next in your talks? Cuba?

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  31. I wish you would recognize the (1) It is easy to achieve high growth rates when you start at zero; (2) while there is a growing middle class in China, there are still huge numbers of workers who work for shit wages, 12 hours a day & 5 days a week and will never be able to buy a home, car, etc; (3) personal freedoms are absent (4) a class of super-rich is also growing in China…not much different than the 1% here in the US. I'm not saying there aren't enormous inequities in the US, but your failure to point out the things above. Quadrupling wages still leave hundreds of millions of people living on poverty wages.

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  32. Can't get past 6:25 without already wanting to cry out and say… "I wonder why?" American greed from the companies who moved to China to the average citizen who wants cheap Stuff! Not hard to understand why China robbed us of everything we hold dear to America. Greedy bastards….one and all! Stop using China for goods and tighten your belts a little!

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  33. You forget to mention the Chinese were poor and ignorant, the iletrelacy are more then 50 percent, what they did first than snitching else they gave them school in fess the 2 generation the iletrelacy was in one digital. I was three 1998 I and I could see what was coming, every youngest was very proud to be the first of the family to read, to go to college etc. that time they don’t have cars but they have roads better then ours. It was amazing.

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  34. Yes there's manufacturing n output multiplication n it IS important quality to price… But I have seen MASSIVE GRAVE YARDS of vehicles n warehouses full of identical products N ON TOP OF THAT ENTIRE EMPTY NEW CITIES JUST BUILT N THAT IS CRAP…. GREAT JOB!!! ye hire ppl to manufacture lobby fir higher prices on contracts n lower msrp…. BUT…. WHEN YOU CREATE A MODEL THAT IS NOT ONLY FALSIFIED BUT IS ALSO
    PURE CONJECTURE N INFLUENCED BY IGNORANCE N GREED U GET A MODEL THAT WILL WORK FIR A WHILE BUT IS BOUND TO FAIL……

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  35. Go China !!!!! I have call this out when I was 12 years old with my first toys label “Made in China” I told my best friend China will be the production country for the world ! And that was 24yrs ago. Smart move with many sacrifices of people to achieve what they have now . It do not happen over night. Only work with spiritual souls and that is what Chinese religions believe and practice , working together with great balance.

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  36. The phrase is " They couldn't care less" not "They could care less" if you can't care less it means you don't care at all. If you could care less it means that you care some about whatever the hell you're talking about. I know it's silly but it makes you sound like a fifth grader to me.

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  37. Dr. Wolff, your analysis of Communist vs. Capitalist Countries Social, Political and Financial systems has a 2 major flaws. Not of your actual analysis, but of the data you used.

    Both sides use exaggerated data, especially the Communists. I know this from actual ''boots on the ground'' personal experiences in all the Countries you have performed your outstanding comparisons.

    1] The rise in wages percentage wise, naturally would be much higher because of the particularly low starting point in Communist Countries. Not so much in Capitalist Countries.
    2] The growth data is always exaggerated in Communist Countries to the point of absurdity. Not so much in Capitalist Countries.

    This is my opinion, but based on my actual lifelong experiences in those Countries. I now rest my weary bones in America. I've tried them all and made my choice.

    God Bless America and you Dr. Wolff.
    I will pray for the others, not yet fortunate to taste the sweet fruits of Freedom.

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  38. So this guy is a commie that wants to bash capitalism. And I can hear in his words the typical lie I hear from communists. China's growth rate is fast but how far back are they compared to the USA? The US citizens were already using modern appliances in their home long before china so how far back is china from catching up with the USA. If it is primitive and people are still taking a shit in the ground, then having a fast growth rate is normal as they are so far back, it doesn't take much to grow considering modern technology. How long has common chinese poeple have flush toilets? And is China not dependent on US markets for growth? Have china not relied mainly on copying and acquiring intellectual property rights? Without the western intellectual property and markets, would china have made it this far? And its typical for a communist to point out at problems in the nation and offer their ideology, communism/socialism as the solution to every problem. No other solution exist in their view.

    Wages? considering the difference in living standards between the US and China, how can you even compare? Chinese have lower wages because of their lack of opportunity and conditions. They live a primitive lifestyle. So their wages increasing isn't surprising as more jobs comes in and the living standard improves. All because of capitalism, not socialism.

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  39. Good show. People will think I'm joking when I recommend THE ONION as the most accurate and truthful news, but no, it's no joke. The more you watch the more you realise it's the truth, AND you get to laugh at the same time!

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  40. Prof. Wolff, as always, is a paragon of knowledge in economic affairs and shines in his understanding of world affairs.
    He makes the world a better place with his example, and his teachings on how the world could be, if we could get over ourselves being the best at everything.
    The delusion of United States exceptionalism is the worst drag in our quest to retain economic supremacy, and the anti-socialist rethoric is the greatest hipocracy ever to come out of the USA. The best and biggest businesses in the USA today are financed by the public purse, not private capital, and they're all part of the MIC. The second best, finance and banking, are the best example of Capitalism for the poor and Socialism for the rich, and soon enough we will have another shot at bailing them out of their misgivings due to their hubris, or not. Will we accept the challenge to challenge them, or will we roll over and let them rule as they please?

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  41. Thank you Dr. Wolff for helping make our world a better place. It's an honor to be able to read your thoughts, which you so readily disseminate, and learn from your understanding of the world.

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  42. Yeah but China is Communist…. it will always end up failing ….. no freedom of business equals no prosperity period! …..POVERTY IS A DISEASE FORCED ON THE PEOPLE BY GREEDY PEOPLE……

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  43. Continuing watching this video didn't dissapoint me, its sort of quality analysis. I'm Malaysian local born Chinese. I like the best part in this video is that you said the Chinese government has been long exercise their effective and successful ruling methods. It is very radiculous someone would be so foolish thinking he could simply alter the ways of China managing their country economy. This is rather true especially when you are reading those Twits. Its really silly someone is telling me these gonna freaking out a long term good performer to alter their way in adjusting to these Twits. 😌😌😌

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  44. Finished watching, quality video with sharing of good wills to make the earth a better place 😘

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  45. SO UNTRUE!!! I saw Shyner come and take truckloads of jobs and ship them in crates back to Shyna. The Captalists said PLEASE NO, but Shyner didnt listen , just laughed and laughed

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  46. I understand exactly what you're saying…and unlike most other countries China skipped the industrial revolution and went straight to technology

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  47. Biased Propaganda: I have (with an open mind) listened to your rhetoric for several years.
    It has run full circle of the flawed Soviet Propaganda Routine.
    Your current justification of China Totalitarian Economics is just more twisting of facts in favor of an Authoritarian Regime trying to present itself as a legitimate fare minded Governance of oppressed people buy another group of Gangsters.
    Remember the statement that “it dose not matter if the cat is black or white as long as it catches mice!”. A Chinese Leader said this back in the late 1970's and it meant that the Chinese will do whatever is needed to be done in order to achieve their Total Authoritative Conquest of as much of the world as possible!
    If you do not believe this is true, review the history of continuous domination of the Chinese people by other Chinese people using the the Chinese National Manifesto-, The Art of War. Of which they are now implementing to entangle the rest of the world in their Treacherous Authoritarianism.

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  48. I am a 3rd generation caucasion here in Hawaii. When I first heard you talking about China and their rise, the first thing that came to my mind was "yeah, of course, they're a homogenious population". They paddle their canoe with everyone sycronized!

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  49. Incredible video. Not many people interested in the long history of China. Understanding Chinese history is very important to know why there is never impossible for China. Hope you can make another video about Chinese people and their characters and their resilience and perseverance.
    Thanks!

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  50. Don't let this communist bastard fool you, the average person in China lives in cramped slums. All this growth came only after Deng introduced Capitalist reforms to their economy. Also comparing a developed Economy to a developing economy is just dumb. He is not dumb, but he think you are and is attempting to fool people to try to bring them over to socialism. Most importantly ,China is making all this money by putting their workers in slave like conditions and then keeping most of the money for government.

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  51. sounds like the old internet show "the sing of stang" was like this till one friday he went off the air and never returned as he was called to heaven over the weekend.

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  52. This has nothing to do with socialism this as to do with imperialism European white control of the world

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  53. Thank you for understanding China so well in Chinese civilization, economy, history, centuries of humiliation… Please make more people understand. I subscribed.

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  54. Now do Nazi Germany's economy, and remember, Richard, "A BALANCED approach" – mkay? No "infantile disorders" allowed.

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  55. 1 . The number one issue of any country isnt economics, it is freedom of worship and self governing. Neither exists in China.
    2. The issue isnt good country vs evil country. If the U.S. Was good then the obamas, Ckintons and nany others would either be executed or in orison, neither exists.
    3. I dont know when this video was done but I challenge you to run the economic numbers based on tidays facts. 4 major banks in China are defunct.
    It was the U.S. That built China. I have tried to buy U.S. Product in the U.S. And couldnt find any. When i complained to the head of the company I was told there isnt sny the companys said they had to go to China to survive. Look whats happening today. Trump came along and viola product came back to the U.S. Long and short the whole world is going down only to bring about the world currency already agreed upon by design to control the whole world.

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  56. This guy is a well known Marxist academic? He doesn't mention that almost every other country in East Asia: Japan, Taiwan, South Korea, Singapore…, made the same transformation, but faster and better, under a capitalist system.

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  57. Democracy is not the solution to the problem , democracy is the problem! As Plato pointed out over 2000 years, democracy would lead to excessive freedom, which in turn would lead to extreme slavary. That is what is happening now in U.S.

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  58. No economy/government has ever had to deal with the two-pronged problem of almost unlimited physical mobility (travel/transport) and the unprecedented, mind-boggling sheer number of human bodies on the planet. The current forms of government (that means us – all of us) have not yet seen or created a system that is designed to (or even capable of) handling these overwhelming circumstances.

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  59. If you think communism/socialism is responsible for China's economic growth, you are a full fledged moron. You are a joke, an idiot, a buffoon, a farce.

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  60. Very fair and accurate information about the world problem today, hope more people can access this program,

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  61. Thank you very very much, Professor Wolff. I love how you make complicated concept o easy to understand.

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  62. clear view on the present situation unfortunately the UK politicians seem not to be aware of it if Europe does not apply some model to cope with the chinese communist party policy we are all lost . Be clever we are urgently in need of a new system certainly not the " capitalist only " way proving clearly to be totally surpassed and resulting in tribal wars .

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  63. he is describing the effects of globalism, not socialism. would chinas economy of grown this quickly without the customers of the west.

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  64. Do you know why socialism and communism keep coming back? Because it makes more sense, when all people own all things, especially to the poor majority. It sounds really insane to let a few rich people and corporations own all things. I tell capitalists to remember, your own grown children might kill you for their inheritance! Unequal wealth is that insane!

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  65. Question: why can't the Russians do that today (export technology not weapons) and sell to the world knowing that they are technologically advanced?

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  66. Your speech that explains about China is very good.This speech must deliver to the world to know that how the China's economy did so good.

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  67. Don't you find it extremely funny how the US continuously bashes communism but owes a $Trillion to a communist country?

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  68. I work in Supply Chain Management/Logistics Ever want to Chat Richard on many other issues that come into play? Let's not forget that shipping routes are what countries go to war for. ie Panama Canal, Suez Canal, Straight of Hormuz. Maersk now has 30 vessels that can ship 20000 20ft containers. What I am seeing is less volume coming from China and more coming from Singapore and Vietnam. Manufacturing jobs are not coming back to the US. They are leaving China and heading to other locations in South East Asia and still capitalizing on cheap foreign labour.

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  69. Sure, China has amazingly outperformed the last 20, even 40 years, so in this you right. But take a second look, the communist party in China celebrates the 70th anniversary this year in October. and things will look quite different.

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  70. Just started watching Dr. Wolff, man he is more disingenuous than Ben Shapiro holy shit. This comment section is cancer. How can you people not understand this shit..

    oh look I started a business selling pencils, this year I sold 8 pencils, last year I sold 4 and the year before I sold 2 pencils.. my business is doubling every time!!! Does this mean I have a better marketing strategy and economic organization than staples???? They aren’t growing as fast as me!

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  71. How does this lowdown evil bas get so many to watch him. This guy is a filthy rich bought off evil bas . He is a wolf in sheeps clothing. Listen to the bas  pompous mouth! Jobs are booming you liar. Trump is signing big job deals all over the world

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  72. Does FBI investigate this guy for speaking on behalf of China? Lol. Everything & anything associated with China must be bad, right?

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  73. true they support there govt while wealth increases. which is a lot easier in a growing economy.going from peasant to worker.and buying things the west have had for decades…comparing growth is like watching a young seed spurt into growth and watching it slow down as it ages and matures when it needs less growth the hard part comes in maturity when you only need less to replace what youve already got… which is what will happen and why the state controls everything in china …the sad thing is the decades wasted under mao… while little hong kong prospered under capitalism a reflection of where china and its people could have been for decades..

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