[Marxism] Chinese state responded more effectively than US to global economic crisis

Charlie charles1848 at sbcglobal.net
Sat May 31 16:53:15 MDT 2014


The comparison is not so simple, and the Chinese recipe does not apply 
to the U.S.

China is still engaged in capitalist industrialization. Government 
spending on infrastructure worked so far as it did because the country 
had much room to build out supplying industries. The government also 
shoveled out plenty of monetary stimulus that wound up in a huge housing 
and office boom. That sector is now contracting, perhaps manageably, 
perhaps precipitously.

U.S. capital sees little profit opportunity in industrial-era 
industries, if you will (no matter how much deterioration the country 
suffers in infrastructure). There are some investment opportunities in 
new technologies, but their impact on total employment is small.

It would be great to have public works jobs, which is perhaps why 
Roach's discussion for capitalists tugs at some progressives' heartstrings.

U.S. capital accepted Keynesian fiscal doctrine after World War Two for 
good reasons -- and abandoned it after several decades for equally good 
reasons, from the standpoint of profit.

Leading up to World War One, German capitalists had much the same 
attitude toward Britain that Chinese capitalits have toward the U.S. 
today. Roach could have written a similar lecture to British governing 
circles that Roach writes here to the U.S.




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