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