Volume 6, Issue 30
World Trade Organization Nations
The world economic system, governed by the World Bank and the International Monetary Fund, is based on capitalism. In this economic structure, private enterprise is the driving force. China operates, governmentally and economically, as a communist state. In that economic system, government ownership and control of assets is the driving force.
Communism cannot compete with capitalism in competition for economic superiority. How do we know this?
It is clear by the evidence of history.
Authoritarian control of a culture, a people, and an economy has been tried many times in 6,000 years. Most recently since the 19th century, communism has been the vehicle of choice to dictate economic terms for society. The Soviet Union believed that size, both geographically and in population, would make the difference. Soviet economic strategists chose not to engage the world economy. They failed in an implosion upon themselves.
China is experimenting with a different approach. Engage the world economy with cheap currency in an effort to manipulate and attract populations to their economic system. The system can only survive by adding new markets. The original Chinese strategy was to develop their own self-sustaining middle class. That hasn’t worked. Expansion is their only viable option. A weak currency requires new projects to continue the ruse of the uncertain value of the basic goods and services that make up the GDP. Deng Xiaoping, the father of the current Chinese system, believed that the command economic system would work because the Chinese people would do what they were told. This may be the case to date. However, the Western world will not automatically yield to such authoritarian government dictates.
It is ironic that the Soviet Union, led by Russia which is culturally and historically expansionist in nature, built the Iron Curtain and looked inward to sustain their economic system. China, which culturally and historically looked inward and built the Great Wall to keep everyone out, now looks outward to perpetuate their economic experiment.
World GDP
World Trade Organization Nations
It will never happen. Communism fails on all levels of scale.
Communism and capitalism can never peacefully coexist because the two underlying currencies can never be calibrated through a free exchange rate. In other words, the GDPs of two such economies can never be reconciled. Communism can only survive if capitalism is eliminated. At that point, all populations are under the control of one authoritarian dictator.
China did not intend this economic consequence. In the beginning, they were simply trying to maintain state-control of their population. Now, they intend to impose their ideas and culture on the rest of the world. Last month, President Xi Jinping delivered a speech in which he said that China has its own ideas on how the world should be run. He declared that China will “lead in the reform of global governance.”
The 172 countries below $1 trillion in GDP have no adequate means to control their own economic destiny. World debt continues to be a world problem, country-by-country. China is offering countries cheap financing and infrastructure support in exchange for the commitment to join their economic system. It is blatant economic mercantilism implemented for Chinese advantage. It is hard for some countries to resist such Chinese temptations. China has established its own world bank and development bank to manage this communist economic system.
The world should take President Xi’s words to heart. China is putting pressure on corporations and sovereign countries to isolate Taiwan in an effort to force them into reunification. They are expanding their infrastructure foreign aid to include deep water ports, transportation, and pipelines. They have announced a new initiative entitled the Polar Silk Road. This is a strategy to connect China to Europe in the most efficient direct route. They are building islands in the South China Sea to control naval shipping lanes. This policy is in direct violation of established international law.
China is now aggressively counseling African countries on media control and propaganda. Countries are offered development under the Chinese model with a promise of their own independence. Colonialism has reappeared. And lastly, Beijing is making headway in influencing international norms on human rights. All of this influence is for narrow Chinese purposes, not for global munificence.
Citizens of the world do not seek authoritarian control of their lives. This is why, in fact, communism has always failed. Total government control has no tolerance for individuality. It always falls behind in innovation, creativity, and ingenious imagination. Democracy is under attack. Some intellectuals question the viability of democratic rule. Criticizing democracy and tolerating communism is the ultimate hypocrisy. Democracy will always be the last great hope for humanity.
Why? Because it is the best form of government to manage human nature instilled with unalienable aspirations.
The United States, as the greatest economic liberator of the human spirit, must see itself as not only the protector, but the bastion of freedom. American values are sound. American morals are inclusive. American charity is selfless. People released through liberty to individually pursue happiness are the “collective governing council” for world norms and order, not state totalitarianism.
We must never fail to believe in the principles of freedom for economic security. We have the window of history to see the path for our economic future.
My name is Marc Nuttle and this is what I believe.
What do you believe?