Chicago Boys

[OddTrader]

Capitalism and communism are the same thing? Fascinating cap'n!

Interestingly, Friedman endorsed "a negative income tax to help low-income persons, a taxation of the prosperous to transfer income to the poor." - Capitalism and Freedom by Friedman, 1962

Perhaps that is a thing some voters and politicians nowadays do not quite understand well.

 

[OddTrader]

Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, Revised Edition

Carl Walter, Fraser Howie

ISBN: 978-1-118-25510-0
260 pages
February 2012


http://au.wiley.com/WileyCDA/WileyTitle/productCd-1118255100.html

Named A Best Book Of The Year By The Economist

Authors Carl Walter and Fraser Howie tell the story of China’s incredible ascension, how it got to where it is now, and what the future holds in the second edition of ‘Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, Revised Edition’.

‘Red Capitalism, Revised Edition’ explores how China's financial institutions—from banks to corporations—with emphasis on the national Communist Party, shape the country's economic choices, development, and reform. With new and expanded coverage of China's "Big 4" banks; why assigning credit ratings is still a problem; the rapid growth of Chinese national debt; and more, it examines whether or not the twenty-first century will belong to China, calling into question the sustainability of the current system. The authors go deep inside the Chinese financial system to illuminate the social and political consequences of the unique business model that has transformed the country into an economic powerhouse and investigate whether the incredible gains of the last thirty-plus years really live up to their reputation.

In contrast to the common view of China as an unstoppable freight train of growth, ‘Red Capitalism, Revised Edition’ shows how the country's decades of development have been marked not by steady ascension but rather an ongoing series of booms and busts that many corporations would not have been able to weather without large-scale government intervention.

The authors argue that we should take comfort that China’s economic system is no worse than the West’s. While they have analyzed aspects of the balance sheet quality of China’s major banks, this book is not meant to be a substitute for the work of a good bank analyst. Their objective is to show how China’s banks, all majority-owned and controlled by the Party, are part of a larger system. ‘Red Capitalism, Revised Edition’ is indispensable reading for anyone looking to understand the limits that China's past development decisions have imposed on its promising future.

 

[SunTrader]

Yet another loser trader socialist rant topic.

 

[OddTrader]

Income Growth

Over previous 34 yearst (1980 vs 2014)

<-----------------Higher Income ---------- Income PERCENTILE ------------ Lower Income---------------->

Note: Inflation-adjusted annual average growth using post-tax income.

Our Broken Economy, in One Simple Chart

By DAVID LEONHARDT
AUG. 7, 2017

https://www.nytimes.com/interactive/2017/08/07/opinion/leonhardt-income-inequality.html?ref=opinion



Remarkably, President Trump and the Republican leaders in Congress are trying to go in the other direction. They spent months trying to take away health insurance from millions of middle-class and poor families. Their initial tax-reform plans would reduce taxes for the rich much more than for everyone else. And they want to cut spending on schools, even though education is the single best way to improve middle-class living standards over the long term.

Most Americans would look at these charts and conclude that inequality is out of control. The president, on the other hand, seems to think that inequality isn’t big enough.

 

[SunTrader]

Where is the chart showing more government control over the economy at the same time.

Doing the same thing over and over but expecting different results.