Economic Update: China’s Economic Record and Strategy

This program
is a follow-up on an earlier program we did. That program was devoted to the Soviet Union,
that first example in the modern period of history of an attempt to build a socialist
society. I built that program and the one today around
the following assumption; that in many conversations about capitalism and socialism as alternative
systems mention is made, particularly by the older generations, of the Soviet Union and
today about the People’s Republic of China. These are looked at as examples (good, bad
or mixed) of what socialism is. They certainly are examples of what some of
the early efforts at building socialism look like and because they’re spoken about so often,
referred to and thought about, it seemed a reasonable time for me to devote some attention
to analyzing them. We did that with the Soviet Union in the earlier
program and today we’re going to do it with the People’s Republic of China. Before I jump into it let me be really clear
about how we are going to do it. This is not an exercise in “we’re good. They’re bad. ” Either way that comes from the Cold War
which was supposed to have ended in 1989-90 but clearly hasn’t, or at least the Cold War
is alive and kicking in the minds of some of our fellow citizens. This is too bad because it prevents the kind
of balanced approach of looking at the pros and the cons that a mature and intelligent
conversation ought to be about. Capitalism has strengths and weaknesses. Socialism is an alternative and it has strengths
and weaknesses. We’d all be better off if we were able to
talk about all of that without resorting to childish invocations of how “we’re good
and they’re bad”. You really ought to get over that at a certain
point in your life or else something’s wrong. We’re not going to go there so let’s go. Let me begin by talking about what economists
often talk about when comparing different kinds of societies and
comparing different countries. You might remember that Adam Smith’s great
work “The Wealth of Nations” published back in 1776 was about explaining why some
way nations are wealthy and some nations are not and to account for that, to understand
it. Part of that was a very generous impulse Mr.
Smith understood that poor countries would like to not be poor and wanted to learn what
the rich countries might be able to teach them about how to get to that situation. China was one of the poor countries at the
time Adam Smith wrote and it got poorer after that. By the 20th century (the last hundred years
or so) the Chinese people were not only the most numerous people of any country on earth
(they remain today the most populous country on this planet by far) but also very poor. The capitalist part of the world had grown
much richer in the intervening couple of centuries so they were even further behind as well as
being absolutely poor. So, they were focused, like most of the people
in the world are, on overcoming poverty. So that’s been their major goal and it’s a
reasonable place to start to assess how well they’ve done. If these numbers trouble you then please understand
it’s because you did not know about them before, not because there’s anything wrong with the
numbers. Over the last 20 years the People’s Republic
of China has increased its output of goods and services faster than any other country
on this planet. In the case of the comparison between the
People’s Republic of China on the one hand and the United States of America on the other
they’re not even close. Let me explain with some numbers. The rate of growth of output of goods and
services (the productivity of the economy, if you like) [for China] in 2005 was 11%. In 2017 it was 15%. In 2010 it was 12% and it has slowed down
since then. Over the last year it was a mere 6.4%. If you wanted to average it out it was probably
in the neighborhood of 10-11% over the last 10, 15, 20 years. By comparison, let me give you the numbers
for the United States of America. Its average growth rate in the 1950s and 60s
was 4%. In the 70s and 80s it fell to 3% and in the
last 10 years it has averaged 2%. In the latest year it was 3.2%; half of what
it was in China, but for most of the last 20 years the rate of growth of China has been
2 to 3 to 4 times that of the United States. That, in a simple way, tells us something. Number one it explains why we’re reading and
hearing so much about China; because they have become the second most important economy
in the world because they have achieved these extraordinary rates of economic growth. Number two it will help you understand something
else about the people of China: they are not about to be pushed around, neither by Mr.
Trump nor anybody else because they have the economic strength
to resist. Number three, if you’re the government of
the People’s Republic of China (and that is a government in which the Communist Party
of China is dominant) you are hardly about to change the way you organize your economy
given how well it has been doing. Governments change either willingly or under
pressure when they’re doing badly for their people. It makes people bitter, angry, critical, and
liable to push for change. This is something Americans no doubt understands
since it’s a situation we face here in American capitalism, or in Europe with
their capitalism that’s not doing really well for an enormous number of people. As a consequence, criticisms are rising. You see a rediscovery of socialism, for example,
here in the United States, you see the yellow vest movement demanding fundamental changes
in France and you see all kinds of other movements we don’t have the time, today, to go into. I like to deal with them occasionally, at
least, in other programs. This is already enough to explain to you why
the People’s Republic of China is the economic phenomena of our time. Let me turn next to the second most typical
statistic to look at if you’re comparing countries and you’re trying to understand what’s going
on with the development or not, of wealth and poverty. This number is called the “real wage”. Here’s what it means: how much can people
afford to buy with the average wages they get. To understand that we look at two numbers. First, how much money is given to people per
hour for the work they do and on the other hand what are the prices of the things they
buy with the wages they get. In other words, if your wage goes up by 10
percent but so do all the prices you face, you’re not one bit better off. You got 10 percent more money but it doesn’t
buy you anything but the same quantity of things it bought you before. When we adjust the wages workers get for the
prices they have to pay, we get what’s called the “average real wage”. What you can afford with the money you get. Let’s compare the last 20 years in the United
States that is this century so far in the United States with that in China. In the United States real wages (the average
wage of the American worker) has stagnated. It has gone nowhere. That’s true not only for the 20 years we’re
talking about of this century, it’s true for the last 25 years of the 20th century. Here’s a statistic for you to think about
as an American if you’re watching this program from the United States or listening to it
on the radio here. In 1973 the wage of the United States, the
average wage of an American, was able to buy (here we go now) MORE things than it was in
2018. The real wage in the United States is less
today than it was then. It’s not less by a lot but it means that over
the last 40 to 45 years Americans who have worked harder than ever, who have been more
productive than they ever were across that time, have not shared in their greater productivity. Their real income, their real wages have not
gone up. The real hourly wage in the United States
is lower today than it was in 1973 and that is something to think about. But now comes the Chinese story. Over the same period of time, the last 20-25
years, real wages in the People’s Republic of China have quadrupled. Let me tell you that again. The basket of goods and services that an average
worker gets in China for an average hour of his or her work is four times greater today
than it was 25 years ago. Yes, Chinese wages remain below the average
in the United States because they were and they still are a poor country when you divide
their total economy by the enormous number of people that live in that country. But if you want to understand why the people
of China support their government here’s a clue: their real wages went up four times
over the last 25 years in a society led by a government in which the Communist Party
is the dominant political force. Let me pause to let all of this sink in. This is not about whether you like these numbers
or don’t this is not about whether you’re critical of many aspects of Chinese society
or you’re not. I myself find things in China I admire and
things in China I would like to avoid. I try to look at the strengths and weaknesses. But when it comes to the economics of their
socialist system and I compare its performance over decades to this moment, there is no contest
about which system has served its people better in terms of economic growth of output. The economy as a whole and the real wages
of the average worker in that society. Is China an example of equality? No. It has a great deal of inequality. There the United States and China have something
in common; high inequality that’s actually getting worse. We will continue after the mid program break
to talk about what’s going on in China so that we understand what the internal
mechanisms are that explain this performance. Before breaking let me remind you, please,
to make use of our websites: and Please subscribe to our YouTube channel. Just go to And finally I want to thank our Patreon community
for the support it continues to provide. We are grateful and appreciative. We’ll be right back. Welcome back friends to the second half of
today’s economic update. We’ve been talking about the People’s Republic
of China. In the first half today we spoke particularly
about its performance as an economy: its rate of growth in production of goods and services
on the one hand and the rate of growth of the average real wage of a Chinese working
person on the other. Having shown the remarkable success of their
economic growth program in both those ways I want to turn now to how they did that. How do they organize their economy and particularly
in what ways differently from that of the United States or Western Europe that might
help us account for their extraordinary performance? First, and perhaps most important for many
of you that are watching and listening, is to understand that the Chinese economy for
quite some time now has had a mixture of privately-owned enterprises and state-owned enterprises. wYou might think of it as a mixed economy
between private and state. It is also true over the last 2025 years that
the role of the private sector has been enlarged, relative to the role of the state sector. However, that has to be made a little more
complicated by noting that the Chinese, in managing this balance between the state and
the private, give the dominance to the state. They say that the state-owned enterprises
will always be the leading sectors, the main industrial groups within the Chinese economy. There’s plenty of room for private enterprises
but the leading part of the economy will be the state. Why are the Chinese doing that? First and foremost, they are doing it because
it’s their way of learning from the experience of the Soviet Union. When the Soviet Union’s kind of socialism
(in which the state was overwhelmingly dominant and the private sector
was really quite restricted), when the Soviet Union collapsed in on itself in 1989 it went
through an extremely quick transition from an overwhelmingly state industrial sector
to an overwhelmingly private one. This was pushed by the folks in Russia who
wanted these changes, it was pushed by foreign advisers led by Jeffrey Sachs now of Columbia
University. It was called a kind of “cold shower treatment”
or sometimes “shock therapy” as a way of fixing what was understood to be wrong. The Chinese analysis is that the suffering
of the Russian people in the 30 years since then (the failures of the Russian economy
in the 30 years since then) had largely to do with the excessive speed and the excessive
extent of what happened in the Soviet Union. They have been determined not to repeat that
mistake. In other words, their communist party’s plan
is to make the transition slow and limited. Yes, foreign enterprises can come in if they’re
private capitalist enterprises, and many have. Yes, Chinese people can set up private enterprises
as many have. But the leading sectors of the economy will
remain state-owned enterprises running the program of economic development that the state
organizes under the leadership of the Chinese Communist Party. It’s important to understand that the Chinese
kind of socialism is itself a learning process in which what happened to the Soviet system
is playing a major role, in this case of what not to do in the way that happened in the
Soviet Union. But it is not the only factor that’s involved. To continue the comparison with the Soviet
Union, because the Soviet Union was the first socialist country and completely isolated
after the 1920s, surrounded by a world that hated what they were doing, they couldn’t
and didn’t find a way to build their economy by exporting. They could not produce for the
rest of the world, make a lot of money that way and use it to develop their own economy. They had to do it pretty much on their own. The Chinese have taken a different path there
as well. Early on the Chinese decided (at the end of
the last century the beginning of this one) to hitch their economic wagon to the world
market, to become the producer of goods and services for sale around the world. In order to do that they had to build industries
that produced what the rest of the world did either at a higher quality or at a lower price
or both. Basically, they’ve done that which is why
Chinese automobiles join Chinese appliances, Chinese clothing, Chinese you-fill-in-the-blank
is everywhere. Most of what you will see in an average Walmart
is made in China and there’s a reason why Walmart stocks up on Chinese goods, and they’re
not the only company of course. So, they hitched their wagon to the world
market and they’ve done very, very well because of it. The Russians couldn’t do that and the Chinese
could and they did. Here’s another thing: private capitalists
didn’t go into Russia hardly at all but they have been rushing, stumbling all over themselves
to get into China. The Chinese understand that and they offered
Western capitalist enterprises the following deal. We need your technology, the Chinese said. We need your money, your capital to be invested. So here’s the deal. We offer you, we will provide you with well
disciplined, efficient, hard-working workers at a very low wage (the one that we have here
in our poor country) and we will build the roads and provide the supports for you to
be able to make a lot of money producing here in China more cheaply than you could ever
produce in America, or Western Europe, or Japan etc. All we ask in exchange is that you share your
advanced technology because that’s why we’re doing this with you. You will have access to our workers and you
will have access to our customers to sell your product, but we want your technology
and your capital. Nobody put a gun to any capitalist enterprises’
head. They made the decision to accept the offer
of the Chinese because it was profitable them for them to do so. If it meant that they laid off workers in
their home countries, these capitalist enterprises, they could care less. They did that. They abandon whole industries. They abandon whole communities. That’s how capitalism has always worked only
this time, with this destruction of working people in the West there was a boon to the
workers of China, which is why I gave you the numbers about the average real wage. So, the Chinese used the world market. The deal they struck with private capitalists
and the lessons they learned from the Soviet Union to organize what they call a special
Chinese kind of socialism that allows for private enterprise (a considerable amount),
allows for market dealings (a considerable amount), but controls from the top through
the state-owned enterprises the leading or dominant sectors of the Chinese economy. The last part of the show for today is to
give a little historical context China is an old civilization and a quite homogeneous
civilization. The Han people are the dominant ethnic group
and other ethnicities are small and scattered. The Chinese are a proud people with a long
history of a pretty well-developed civilization which at various times over the last couple
of thousand years was much more developed than civilizations in the West were. So for them it was doubly embarrassing, humiliating
is the word they used, to fall under the control of foreign colonialists in the 17th, 18th,
19th century from Britain, from France, from Germany, from the United States. It culminated in a horrible moment of rebellion
called the Boxer Rebellion at the end of the 19th century when a futile effort by the Chinese
authorities to push back against the Western imperialists was defeated. China was never made into a colony. They’re very proud of that. But they had to give away Hong Kong and parts
of their country to the foreigner who controlled them, who settled their merchants and other
companies in these special territories where they didn’t find
themselves subject to Chinese Authority or Chinese law. The Chinese, as a people, made a commitment
to find their own way, to break, led by Sun Yat-sen at the beginning of the 20th century. And when that wasn’t sufficient and when they
were added the humiliation of the invasion of their country by the Japanese in the 1930s
a revolt of a much deeper sort took place in China. They were successful. At first it was an alliance between the nationalists,
who wanted to build up a capitalist China. and the Communists, who wanted to build up
a socialist China. But they worked together to push the Japanese
out. By 1945 they had done so, together with the
fight of the United States and its allies against Japan. As soon as World War II was over the alliance
between the capitalist / nationalist Chinese under their leader Chiang Kai-shek ended up
in a civil war with the Communists, their former allies, led by Mao Zedong. A civil war broke out from 1945 to 1949 ending
with the decisive and complete victory of the Communist Red Army. The Chiang Kai-shek people left the mainland
of China and went to Taiwan where their descendants still live and still imagine that they, on
the little island, are China whereas the vast mass of people on the mainland are something
else. No one hardly is left in the world who shares
this delusion. From 1949 to now, 70 years, is historically
not a long time. But from a decimated, poor, colonialized country
China is now the number two economy in the world. It is an incredible achievement. Not to understand that, not to understand
what this means in the minds in the feelings and in the pocketbooks of the Chinese people,
not to understand that it has involved moving four to five hundred million people off of
the poverty-stricken countryside into the urban industrial jobs along the coast of China,
these are misunderstandings that make no sense. You are not helped in understanding, let alone
fixing the problems of the world, by living in the delusion that the things I’ve tried
to get across today are not the case, don’t have to be taken into account and somehow
don’t matter. Unfortunately, in the mainstream media of
the United States, and in other parts of the West, most of this is simply not reported
on, not covered, evaded. That doesn’t do anyone a service unless it’s
the people who run the kinds of society China isn’t, who are afraid of the model and the
example China offers. For my part it is our effort, here at economic
update, to provide the kind of information on the basis of which rational decisions can
be made about making the world a better place. I hope you have found these in-depth analyses
of the Soviet Union and China a useful part of the ongoing debate about capitalism and
its alternatives, the number one of which is varieties of socialism. Thank you for your attention and I look forward
to speaking with you again next week.

Maurice Vega

100 Responses

  1. Go China !!!!! I have call this out when I was 12 years old with my first toys label “Made in China” I told my best friend China will be the production country for the world ! And that was 24yrs ago. Smart move with many sacrifices of people to achieve what they have now . It do not happen over night. Only work with spiritual souls and that is what Chinese religions believe and practice , working together with great balance.

  2. The phrase is " They couldn't care less" not "They could care less" if you can't care less it means you don't care at all. If you could care less it means that you care some about whatever the hell you're talking about. I know it's silly but it makes you sound like a fifth grader to me.

  3. Dr. Wolff, your analysis of Communist vs. Capitalist Countries Social, Political and Financial systems has a 2 major flaws. Not of your actual analysis, but of the data you used.

    Both sides use exaggerated data, especially the Communists. I know this from actual ''boots on the ground'' personal experiences in all the Countries you have performed your outstanding comparisons.

    1] The rise in wages percentage wise, naturally would be much higher because of the particularly low starting point in Communist Countries. Not so much in Capitalist Countries.
    2] The growth data is always exaggerated in Communist Countries to the point of absurdity. Not so much in Capitalist Countries.

    This is my opinion, but based on my actual lifelong experiences in those Countries. I now rest my weary bones in America. I've tried them all and made my choice.

    God Bless America and you Dr. Wolff.
    I will pray for the others, not yet fortunate to taste the sweet fruits of Freedom.

  4. So this guy is a commie that wants to bash capitalism. And I can hear in his words the typical lie I hear from communists. China's growth rate is fast but how far back are they compared to the USA? The US citizens were already using modern appliances in their home long before china so how far back is china from catching up with the USA. If it is primitive and people are still taking a shit in the ground, then having a fast growth rate is normal as they are so far back, it doesn't take much to grow considering modern technology. How long has common chinese poeple have flush toilets? And is China not dependent on US markets for growth? Have china not relied mainly on copying and acquiring intellectual property rights? Without the western intellectual property and markets, would china have made it this far? And its typical for a communist to point out at problems in the nation and offer their ideology, communism/socialism as the solution to every problem. No other solution exist in their view.

    Wages? considering the difference in living standards between the US and China, how can you even compare? Chinese have lower wages because of their lack of opportunity and conditions. They live a primitive lifestyle. So their wages increasing isn't surprising as more jobs comes in and the living standard improves. All because of capitalism, not socialism.

  5. Good show. People will think I'm joking when I recommend THE ONION as the most accurate and truthful news, but no, it's no joke. The more you watch the more you realise it's the truth, AND you get to laugh at the same time!

  6. Prof. Wolff, as always, is a paragon of knowledge in economic affairs and shines in his understanding of world affairs.
    He makes the world a better place with his example, and his teachings on how the world could be, if we could get over ourselves being the best at everything.
    The delusion of United States exceptionalism is the worst drag in our quest to retain economic supremacy, and the anti-socialist rethoric is the greatest hipocracy ever to come out of the USA. The best and biggest businesses in the USA today are financed by the public purse, not private capital, and they're all part of the MIC. The second best, finance and banking, are the best example of Capitalism for the poor and Socialism for the rich, and soon enough we will have another shot at bailing them out of their misgivings due to their hubris, or not. Will we accept the challenge to challenge them, or will we roll over and let them rule as they please?

  7. Thank you Dr. Wolff for helping make our world a better place. It's an honor to be able to read your thoughts, which you so readily disseminate, and learn from your understanding of the world.

  8. Yeah but China is Communist…. it will always end up failing ….. no freedom of business equals no prosperity period! …..POVERTY IS A DISEASE FORCED ON THE PEOPLE BY GREEDY PEOPLE……

  9. Continuing watching this video didn't dissapoint me, its sort of quality analysis. I'm Malaysian local born Chinese. I like the best part in this video is that you said the Chinese government has been long exercise their effective and successful ruling methods. It is very radiculous someone would be so foolish thinking he could simply alter the ways of China managing their country economy. This is rather true especially when you are reading those Twits. Its really silly someone is telling me these gonna freaking out a long term good performer to alter their way in adjusting to these Twits. 😌😌😌

  10. SO UNTRUE!!! I saw Shyner come and take truckloads of jobs and ship them in crates back to Shyna. The Captalists said PLEASE NO, but Shyner didnt listen , just laughed and laughed

  11. I understand exactly what you're saying…and unlike most other countries China skipped the industrial revolution and went straight to technology

  12. Biased Propaganda: I have (with an open mind) listened to your rhetoric for several years.
    It has run full circle of the flawed Soviet Propaganda Routine.
    Your current justification of China Totalitarian Economics is just more twisting of facts in favor of an Authoritarian Regime trying to present itself as a legitimate fare minded Governance of oppressed people buy another group of Gangsters.
    Remember the statement that “it dose not matter if the cat is black or white as long as it catches mice!”. A Chinese Leader said this back in the late 1970's and it meant that the Chinese will do whatever is needed to be done in order to achieve their Total Authoritative Conquest of as much of the world as possible!
    If you do not believe this is true, review the history of continuous domination of the Chinese people by other Chinese people using the the Chinese National Manifesto-, The Art of War. Of which they are now implementing to entangle the rest of the world in their Treacherous Authoritarianism.

  13. I am a 3rd generation caucasion here in Hawaii. When I first heard you talking about China and their rise, the first thing that came to my mind was "yeah, of course, they're a homogenious population". They paddle their canoe with everyone sycronized!

  14. Incredible video. Not many people interested in the long history of China. Understanding Chinese history is very important to know why there is never impossible for China. Hope you can make another video about Chinese people and their characters and their resilience and perseverance.

  15. Don't let this communist bastard fool you, the average person in China lives in cramped slums. All this growth came only after Deng introduced Capitalist reforms to their economy. Also comparing a developed Economy to a developing economy is just dumb. He is not dumb, but he think you are and is attempting to fool people to try to bring them over to socialism. Most importantly ,China is making all this money by putting their workers in slave like conditions and then keeping most of the money for government.

  16. sounds like the old internet show "the sing of stang" was like this till one friday he went off the air and never returned as he was called to heaven over the weekend.

  17. Thank you for understanding China so well in Chinese civilization, economy, history, centuries of humiliation… Please make more people understand. I subscribed.

  18. Now do Nazi Germany's economy, and remember, Richard, "A BALANCED approach" – mkay? No "infantile disorders" allowed.

  19. 1 . The number one issue of any country isnt economics, it is freedom of worship and self governing. Neither exists in China.
    2. The issue isnt good country vs evil country. If the U.S. Was good then the obamas, Ckintons and nany others would either be executed or in orison, neither exists.
    3. I dont know when this video was done but I challenge you to run the economic numbers based on tidays facts. 4 major banks in China are defunct.
    It was the U.S. That built China. I have tried to buy U.S. Product in the U.S. And couldnt find any. When i complained to the head of the company I was told there isnt sny the companys said they had to go to China to survive. Look whats happening today. Trump came along and viola product came back to the U.S. Long and short the whole world is going down only to bring about the world currency already agreed upon by design to control the whole world.

  20. This guy is a well known Marxist academic? He doesn't mention that almost every other country in East Asia: Japan, Taiwan, South Korea, Singapore…, made the same transformation, but faster and better, under a capitalist system.

  21. Democracy is not the solution to the problem , democracy is the problem! As Plato pointed out over 2000 years, democracy would lead to excessive freedom, which in turn would lead to extreme slavary. That is what is happening now in U.S.

  22. No economy/government has ever had to deal with the two-pronged problem of almost unlimited physical mobility (travel/transport) and the unprecedented, mind-boggling sheer number of human bodies on the planet. The current forms of government (that means us – all of us) have not yet seen or created a system that is designed to (or even capable of) handling these overwhelming circumstances.

  23. If you think communism/socialism is responsible for China's economic growth, you are a full fledged moron. You are a joke, an idiot, a buffoon, a farce.

  24. clear view on the present situation unfortunately the UK politicians seem not to be aware of it if Europe does not apply some model to cope with the chinese communist party policy we are all lost . Be clever we are urgently in need of a new system certainly not the " capitalist only " way proving clearly to be totally surpassed and resulting in tribal wars .

  25. he is describing the effects of globalism, not socialism. would chinas economy of grown this quickly without the customers of the west.

  26. Do you know why socialism and communism keep coming back? Because it makes more sense, when all people own all things, especially to the poor majority. It sounds really insane to let a few rich people and corporations own all things. I tell capitalists to remember, your own grown children might kill you for their inheritance! Unequal wealth is that insane!

  27. Question: why can't the Russians do that today (export technology not weapons) and sell to the world knowing that they are technologically advanced?

  28. Your speech that explains about China is very good.This speech must deliver to the world to know that how the China's economy did so good.

  29. Don't you find it extremely funny how the US continuously bashes communism but owes a $Trillion to a communist country?

  30. I work in Supply Chain Management/Logistics Ever want to Chat Richard on many other issues that come into play? Let's not forget that shipping routes are what countries go to war for. ie Panama Canal, Suez Canal, Straight of Hormuz. Maersk now has 30 vessels that can ship 20000 20ft containers. What I am seeing is less volume coming from China and more coming from Singapore and Vietnam. Manufacturing jobs are not coming back to the US. They are leaving China and heading to other locations in South East Asia and still capitalizing on cheap foreign labour.

  31. Sure, China has amazingly outperformed the last 20, even 40 years, so in this you right. But take a second look, the communist party in China celebrates the 70th anniversary this year in October. and things will look quite different.

  32. Just started watching Dr. Wolff, man he is more disingenuous than Ben Shapiro holy shit. This comment section is cancer. How can you people not understand this shit..

    oh look I started a business selling pencils, this year I sold 8 pencils, last year I sold 4 and the year before I sold 2 pencils.. my business is doubling every time!!! Does this mean I have a better marketing strategy and economic organization than staples???? They aren’t growing as fast as me!

  33. How does this lowdown evil bas get so many to watch him. This guy is a filthy rich bought off evil bas . He is a wolf in sheeps clothing. Listen to the bas  pompous mouth! Jobs are booming you liar. Trump is signing big job deals all over the world

  34. Does FBI investigate this guy for speaking on behalf of China? Lol. Everything & anything associated with China must be bad, right?

  35. true they support there govt while wealth increases. which is a lot easier in a growing economy.going from peasant to worker.and buying things the west have had for decades…comparing growth is like watching a young seed spurt into growth and watching it slow down as it ages and matures when it needs less growth the hard part comes in maturity when you only need less to replace what youve already got… which is what will happen and why the state controls everything in china …the sad thing is the decades wasted under mao… while little hong kong prospered under capitalism a reflection of where china and its people could have been for decades..

  36. Professor Wolf – Thank you for your passionate and logically presented background to how China has reached where it has. As always, you make the rear-view mirror of history point forwards to our present and future with clarity, for which I am grateful.

  37. Now that Trump is claiming to be a savior and the chosen one…. hahahahaha….. Share this video with your friends again….. 😉

  38. Take our own advice lately? Dr. Wolff rants on, Socialism "Good" / Capitalism "Bad". The FACT is, all the major advances (medical, telephony, industrial, etc.) that have created more jobs and higher standards of living have come from private capitalist companies, not the government. The "Majority" agree that "BIG government Sucks" and Americans are not going to give more control to government than what is necessary. Democrat socialists want larger government beyond what is necessary which will lead to more corruption.

  39. Excellent channel that tells the cause and effect of how the world is today, unlike mass-media who are providing partial truth driven by beneficiary entities.

  40. Pretty interesting that you "forgot" to mention the piles of dead bodies that Mao and Co were responsible for. Also pretty interesting that people are supporting this garbage because of capitalism's certain weaknesses, seems like pretty bad faith in the argument. Granted, capitalism isn't working at the moment, the majority of countries who have adopted a capitalistic system, specially the ones that have certain socialist elements, far exceed the quality of life standards compared to cheap laborers in China who hardly have any freedom of any sort of expression.

  41. Just two comments: 1) I think that during the Japanese invasion the nationalists were more concerned about repressing the communists than with fighting the actual invaders 2) the economic growth of China comes with an immense environmental devastation that must be underlined

  42. I'm not sure a growth rate of 15% is sustainable. If we have learned anything from capitalism, it's that growth can't last forever.

  43. Isn't moving the rural poor to urban centers in an industrial boom exactly the same thing that happens under capitalism, and doesn't it come with exactly the same kind of exploitation?

  44. Economist Kardashian WOLF once again fails to educate the viewer. China Central bank created 50 Trillion dollars US in off balance accounts. between 2015-2018. China is just PRINTING money, which was then loaned to Chinese banks and Gov. controlled companies. This 50 trillion is not counted on chinas books as debt, it is being recorded as an asset. 25 Trillion was used to refinance zombie companies and the other 25 Trillion was used to invest in US stocks/bonds/funds, held in shell Corporations etc…. You see ECONOMIST kardahsian wolf will talk about millionars buying expensive homes, but he wont educate you about the truth. He is uneducated on the actual facts.

  45. I love this video. No way Wolf could have known that Hong Kong would go full riot and wave American flags. Once again ignorant Wolf has zero knowledge on another subject. Sad old man.

  46. China is innovating faster than anyone could've imagined, China turns from production into engineering, innovation & technology sectors. Many of these innovate in China & Chinese companies did it themselves instead of looking at the outside world's. More importantly, China got rid of Millions of people out of poverty, this is the greatest miracle in Human History. China has planned a targeted reduction of poverty by 2020. They've set the target they'll get over it & they'll achieve the target. Wish China to continue to prosper.

  47. A bit of disinformation, during the 18th century when Adam smith wrote his book, China was the richest nation in the world. You can wiki it.

  48. China and Russia (and some other nations) are buying gold in tons.

    What is the US government doing?

    Print more money.


  49. 中国文化底蕴是中庸,所以导致了不会像苏联一样那么激进,要不社会主义,要不全盘西化突然休克,因为中国中庸文化属性导致国家资本和个人资本并行,还弄个中外合资。全盘放开网络不行但允许你们自己有能力翻墙…… 例子太多

  50. the 4 time increase of the real wage of Chinese citizens under the Chinese experiment in the past 25 years, and the discordance for a country with ancient history and humiliating recent memories are the 2 keys so fundamental to understand the Chinese story, which unfortunately has been largely ignored by western mainstream media outlets, and even by some new generations in Hong Kong and Taiwan.

  51. A really good, informative and illuminating lecture! Simple and straightforward explanations in a simple and straightforward language! Congratulations!

  52. Meanwhile all I hear from mainstream media is China is evil, totalitarian, lacks rule of law, no freedom, they make it look like Chinese ppl are dying or something. Lol

  53. Although what the Chinese have accomplished I certainly spectacular, the comparison of these two economies is unfair simply because our is am economy fully and has been
    for a long time.

  54. I'll add this – even within the state sector (as in state owned enterprises – SOE), there's a mixture of state and private, called hybridization, where managers from the private sector work in SOEs to make them more efficient and competitive however the state (central gov, provincial gov or city gov) retain majority control and ultimately call the shots. This way they can balance out various social interests – providing employment, and services, while being profitable and self-sustaining. Not all SOEs are hybridized, some are and the successful ones provide case study for others.

  55. Average workers wages have stagnated, but the corporate elite’s salaries have multiplied exponentially, because they shipped our jobs abroad in order to get cheap labor then sell those products back to US consumers. American consumers must get wise and demand a better deal from corporate elites.

  56. First and foremost, admittedly so China did not have create as American purposefully took from its’ poor Blacks and White job- Industries and place it en Chine; of course this process was not over night, but en any regards America acting racist Ly took from its’ self. China on the other hand really is just an assembler of terrible goods (Thirty year’s proved nothing by way of quality) where payments rolled in.

    America’s corporations and government are one en the same- Profits for the few. A pure example of this is the purposefully orchestrated plan to stagnate the wages of workers- White and Blue Collar all the while increasing the price of terrible goods assembled en Chine which should decreased en price, but not.

    It therefore a correct statement, ‘Your alleged analysis is greatly flawed or a huge attempt to shield your American and world audiences of the most specific reason or decision utilised en making decisions en America- HATRED, RACISM, MURDER, and A huge VIOLATION of HUMAN RIGHTS! En fact, a more accurate analysis would be to compare uncompromisingly the similarities of America and Chine.

  57. Wolff is lying because it contradicts his B.S.

    China didn't "build industry" -most, at least initially, was brought in by the Capitalist companies who hired their people. And in most cases there was no deal to "exchange" technology – it happened organically as Capitalist enterprises were set up with foreign help and their people learned the business.

    And Wolff is hiding what made all this happen, and produced the huge success and the difference with Russia – because it goes against his agenda – which is that China took a clear step to THROW OUT Wolff's beloved Socialism from the economy, and to bring in Capitalism, keeping only the political totalitarian system and 1/3 of industry in state's hands, and freeing up the other 2/3.

    So China is a great example of Socialism failure and Capitalism success, and Wolff is tip toeing around this, and not saying it, because it blows up in his face.

  58. Dear Dr Wolff.
    Thank you so much for this.
    I have found myself completely obsessed with trying to find out more about the Chinese political and economic system ever since the current incumbent of the Whitehouse started his demonisation of the country. Apart from personal enrichment and retaining power by any means, regardless of the long term outcomes for the US and its people, it is hard to see what is being achieved. I applaud your clear-sighted analysis and pray that some moderation and maturity will enter the discourse in order to avoid what appears to be an inevitable train wreck.

  59. Chinese workers are brainwashed drones working 12-16 hours a day, 6-7 days a week. Of course slavery is a very efficient economic system. The same was true for USSR. We need to replace capitalism with a more equal and democratic system, not with a dictatorship barely distinguishable from slavery, run by a few party leaders.

  60. Its nice to see someone speak about the facts and not let the fearmongering voiced by so many affect the true situation we are facing in our economic worlt today and in the near future.

  61. Mainstream media….. fucking sucks…..

    Never heard ANY of this…. not a peep. But I keep hearing they steal our intellectual property….. NON STOP!

    Thank you Mr Wolff.

  62. The Soviet Union was the main liberator of China from Japanese occupation. One of the largest the largest and most successful (from the Red Army perspective) series of battles few people (outside of China and Mongolia) know about. It's why there are Red Army monuments all over China, not just in the north where the fighting occurred.

  63. Great analysis. This explains why Joss Whedon's short-lived futuristic space-cowboy TV series FIREFLY showed the multi-world society to be an amalgam of different cultures with an underlying base of Chinese influence.

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