Econ 1.6- Economic Systems: Why is Communist China doing so well?



hey how unique on students this is mr. Clifford welcome to ac/dc econ do you have a question mr. Clifford if the free market so awesome then why does Communist China doing so well that's a great question and to answer it I've come here to the People's Republic of China right now I'm in a city just north of Hong Kong called Xiamen when American students think about China they probably think about this a very old historic and traditional place but I came to see Red China and find out why communism is working so quite frankly it's kind of hard for me to be here around all these Communists right I'm a free-market economist and all I see is red red red red Joe McCarthy we just be turning is great seeing all these communists all over the place but sure doesn't feel like communism right everyone's wearing different clothes and these people with cell phones people shopping at the stores there's no ration cards even their McDonald's is red wait McDonald's is always red wait McDonald's Starbucks KFC Red China is not very red I mean everywhere I look all I see is markets markets everywhere take a look one of my hats there's hat you want to buy some sweets you can buy some sweets want to buy some jewelry there's jewelry this place is the free market this is not the government telling these producers what to produce this is clearly capitalism right now China has a second largest cotton entire world it's supposed to surpass beyond the United States in approximately two decades why is there so much economic growth in China um in my opinion I think because China is a new country we got a lot of opportunity China is a new country staphon 1979 what happened in 1979 1979 album famous Premier named mr. tan shopping his birth smog is in a folder of a new country they say we want to build a new trainer so we went to Oklahoma kiwi windows everything new Shah man is one of the original special economic zones created back in 1979 that means it has a special government system that allows foreign investment in foreign trade did you notice that lady check me out that means it has a special government system that allows for investment in foreign trade the idea works so well that Chinese government actually continued the process by establishing 14 more special economic zones these are mostly coastal cities with access to ports the result was this double-digit GDP growth year after the year for almost two full decades now this is a communist country and the Communist Party does control it but it's very clear that this is open to the free market at the same time it looks nothing like the classic centrally planned economy the you see no textbook China is a communist country but it's nothing like North Korea what's the big difference between China and North Korea you know in North Korea the government totally control the economy but in China Chinese government control a part of the economy and we we have central planners but that's not all we still have free markets China is a great example to show you how the invisible hand of capitalism leads to more economic growth but don't think that everything is perfect there's no democracy or free speech and the government heavily regulate foreign influences so there's no YouTube Facebook or Twitter the education system is very rigid and a little bland and that's why I'm here to get teachers excited about teaching economics Chinese students are super smart and hardworking masala will cause us 7:20 in the morning and we finish our cars that for hovers for as our afternoon and we have our self-study time 7 to 950 okay so school ends like studying ends around 10 o'clock at night there's no school sports except for PE and there's no school mascots and these are their toilets notice no toilet paper but this has nothing to do with our economic system so is communism really better than capitalism enough with the gong okay communism is not the reason for China's success it's a market economy with socialist characteristics Chairman Mao is on the money but Adam Smith is on their minds until next time




Comments
  1. if you saw an animal in a zoo, wouldn't you look at it twice. Thats what she did, Jacob. Thats what she did

  2. We don't care about what communism or capitalism is, which way makes us richer is the way we choose.

  3. China is maybe cruel but captialist countries all divide diffrent races and colours and if they are weak or strong

  4. You can find hundreds of videos praising China. But the sun will never set in the east and communism will not help mankind.

  5. That's why China could not build any Revolutionary brand like Google/Apple/Facebook etc… All they did is copied…. While democracy makes free minds to explore which made USA and EU make great products and services.

  6. The political and economic policies making by the communist party under the state control with good governance, still is communist state.

  7. It has nothing to do with socialism or capitalism, it's hard to explain in one wors, but absolutely about hard working, and high efficient governing system.

  8. No matter where you go, see people as persons. Do not look upon somebody as if he was a resource and treat him as such. For that is called usury, and is not loving-kind. Is that not what confuscius teaches too ? But sometimes the lamb must behave like the wolf in order to survive, otherwise the wolves will eat the lamb. Maybe the chinese see themselves as the lambs ? But they who live in Taiwan , Tibet or Hong Kong may feel like the wolves are watching them.

  9. The United States is part socialist. Government does have a role to play in the economy. The FDA agency in the US helps keep businesspersons from selling poison while calling it medicine. There is the EPA which regulates pollution too. Basically, government must strike a balance between the social interest and the private interests. Both Americans and Chinese people have a low opinion of them who exploit others to enrich themselves. But when you can create a product or service to sell, and the consumer says, Wow, I would pay more, then you have created value. And as long as the price is greater than the cost to produce it, you have profit too. If value is greater than price which is greater than cost, and you can scale up, sell more and more, you will be financially successful while making society better off. https://www.youtube.com/watch?v=S-cvXSYH5BU The real difference between china and the u s, is that china has a one party system. And this means the debate is internal, and hid, from many. Well, debate is hid to a large degree in the u s too. The west wing of the white house is the show put before the people, but the policy is made behind closed doors in the east wing.

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