Is China better at capitalism than America?
Conventional wisdom holds that Uncle Sam's free-market model is the best in the world. But China's growing clout is causing economists to think twice
The 1991 collapse of the Soviet Union seemingly put to rest any doubts about the supremacy of America's capitalist system. Guided by the magic hand of the market, the U.S. had created more prosperity than any other country in history, while the Soviet system crumbled under the weight of its creaky, bureaucratic machine. But the subsequent rise of China, whose economy combines aspects of capitalism and central planning, has thrust the U.S. model under new scrutiny. While Uncle Sam continues to limp his way out of the Great Recession, China has hardly broken its stride. Is China's brand of capitalism simply better than America's?
Yes. China is winning the future: China is smoking us, says Zachary Karabell at The Daily Beast. Both the U.S. and China engage in a lot of government spending, but China puts its money into infrastructure, transportation, alternate energy, and housing, all of which "will yield long-term benefits for the Chinese economy." The U.S., on the other hand, spends on "consumption, safety nets, and the military," which comprise a shakier foundation for economic growth. The "sclerotic inability" of the U.S. government to "productively invest for the common future" is the reason why its "form of capitalism has ceased to fulfill hopes, dreams, and needs of far too many people."
"China's not the big trade cheat harming America's domestic economy"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Nonsense. China's system is a pale imitation of ours: It's fashionable to proclaim that China "is eating our lunch," says Ian Bremmer at Reuters, but it's all "baloney." Just look at the way Chinese manufacturers "copycat everything foreign, from cars to watches to iPhones to social networks." The Chinese system will never "foster the entrepreneurial spirit" that makes these innovations possible, because the drearily unimaginative state is the "majority owner" of the economy. China has been able to "shoehorn a crude version of a beautiful financial system into its state-controlled economy and get some good results." But it will never be able to replicate the breakthroughs that are the hallmarks of a true free-market system.
"Chinese capitalism is just another knockoff"
Either way, the U.S. can learn from China: At every turn, America sees "ideological hang-ups standing in the way of what everyone realizes must get done" in investment and education, says Michael Schuman at TIME. In that sense, we could learn a lot from China, which dispassionately puts "pragmatism and problem solving over ideology." That's the Chinese model America should adopt: "Dropping the political bickering and ideological grandstanding and doing whatever is necessary to create prosperity."
"Can Asian-style capitalism save the West?"
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
-
Melting polar ice is messing with global timekeeping
Speed Read Ice loss caused by climate change is slowing the Earth's rotation
By Peter Weber, The Week US Published
-
The Week contest: Stick guitar
Puzzles and Quizzes
By The Week US Published
-
'Sports executives ushered a fox into the henhouse'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published
-
Xi-Biden meeting: what's in it for both leaders?
Today's Big Question Two superpowers seek to stabilise relations amid global turmoil but core issues of security, trade and Taiwan remain
By Harriet Marsden, The Week UK Published