China/Kakistocracy update

D. L. dlawbailey at netzero.net
Fri Mar 8 02:56:52 PST 2002


The command economy is inevitably corrupt and pre-capitalist in character. Inevitably corrupt because, under the command economy, resource distribution is simply a measure of political influence. It has nothing to do with the intrinsic value of economic programs. Corruption is necessary for people with economic ideas and insufficient political muscle to get resource distribution. The corrupt official thereby plays the same role as the capitalist or, more correctly, the merchantilist. Merchantilist because command economies have uniformly lacked a mechanism which would play the role of capital markets, allowing economic endeavors to be valued against one another dynamically and (more or less) objectively.

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