External forces hampering the thought process, but my general idea is that every country's economy will begin with a form of trial and error process by looking at Japan's economy before and after their isolationism along with the massive expansion after WWII.
China's economy is growing by using the same "Trial and Error" lessons learned by other industrialized nations and every third world nation has the potential to do the same.
To expect those countries to pay the same wages, have the same regulations, and incorporate the same tax rates is counterintuitive to logical economics and an arrogant form of oppressing the natural rise of a country's growth and living standards.
Even in the US, different states have different wages, regulations and tax rates. The fastest economies are those that these three are at lower levels, bringing up the quality of living standards to those that live in that state.
As the external costs of businesses rise, ie taxes and costs of regulation, wages and employment levels suffer thereby lowering the standard of life but not the expectation of maintaining those standards. To lower the costs of business, companies, that can, will relocate some, if not all operations to a less costly location. Sometimes that company will move to a different US state, or they may move outside US borders if the cost relief is great enough.
Individuals will do the same as noticed with the exudus from California, New York, and Massachusetts. This is human nature and to state that human nature should change suddenly is counterintuitive also, because human nature evolves over the course of generations and not in a matter of a few years. There are few times in history which the mindset of an entire population has changed course drastically and, to be honest, most of those changes were not for the better. The rise of Empirical Japan, Nationalist Germany, Socialist Russia, Communist China, Communist North Korea, Communist Cuba are good examples from current history.
The capitalist "status quo" has a proven track record of improving the quality of life than centralized government planning. Free markets react quicker to disruptions and consumer demand than central planning; by pricing which will either increase or decrease the demand, by tapping into new markets that will provide the resources to prevent disruptions, or by simply discontinuing said product until the disruption is corrected.
The motivator for a company to react quicker is profit, whereas the motivator in central planning is based a "good of mankind" moral authority that is based on the opinion of what is neccessary to survive not an individual's right to create their own destiny.
0 comments