America vs China: Who does Economic Policy better?

[MH]

Originally Posted by Betonov

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

Chinese economy is profit driven as well but no greedy CEOs
People get rewarded but reasonably for achievements and get kicked in ass for failure.

You talking about western products back in 91.
Its 2011 and most of the stuff has this "designed in switzerland made in china thing" on it.

[Oberon]

China is tricky. On the outside it looks like a massive success story and as strong as an ox. On the inside though it's creaking and full of band-aids over holes in the dam. Hu knows this, he knows that he has to adjust the export primary market into a more balanced market, bring the Yuan up in strength gently and feed the revenue generated into improvement projects for the inner-country. If this is not done and the gap between the interior and exterior runs out of control, then it's second revolution time.