I'd vote for the American system. Free market has a way of adjusting itself, the problem with today are greedy CEO's that have too many friends in high places and a banking system that draws money out of thin air.
A planned economy can't react fast enough to changes. The Chineese are lucky they live in a vast country with an enormeus workforce and apart from some resources, they don't need to import a lot. A smaller nation that would rely on trade would go bankrupt since it takes politicians a whole generation to figure out times have changed, while an entropenour just looks at the business page in the daily newspaper.
You want an example: Yugoslavia, once it was a big country that was self sufficient. We produced what we needed, Slovenian goods were hot goods on the Yugoslavian market. Then 91' came, we began trading globally, but our goods were good for a country that had almost no import (shun the western capitalism and their goods made with slave labor), then foreign goods came, better quality, better prices and domestic companies refused to adapt, since they had no idea how to adapt. Only countries founded after 91' somehow managed.
Planned economies fail in the longrun in a fast changing world of today
|