In today’s Mises Daily article, “A Skyscraper Curse with Chinese Characteristics,” Mark DeWeaver discusses the economic situation in China, and moves on to discuss the likelihood of an economic crisis:
Mises Institute: There is a great deal of confusion concerning the Chinese economy and its trade and monetary policy and mystery concerning its ability to generate double-digit rates of economic growth. Let us start by giving us a description of the Chinese economy and whether it is socialism or capitalism at work.
DeWeaver: China has well-developed product markets but can hardly be called capitalist, given that most of the means of production are at least partially state owned.At the same time, the Chinese economy has also never really been centrally planned. Most economic decision making takes place at the local-government level, much as was the case during the Maoist period. The system might be best described by the seeming double oxymoron, capitalism with limited private ownership, socialism with limited planning.
Read the full interview.