"Many in Washington fear that China is already eating America’s lunch. Yet China cannot be a true competitor to the US until it allows merit and innovation to allocate capital and rewards. An economy built on wage suppression and state investment can be large, but it cannot be competitive in the long-term." #QotD

"Many in Washington fear that China is already eating America’s lunch. Yet China cannot be a true competitor to the US until it allows merit and innovation to allocate capital and rewards. An economy built on wage suppression and state investment can be large, but it cannot be competitive in the long-term.
    "Imagine if 80% of the bank loans in America went to politicians. Putting resources into the hands of officials reduces returns. The more the Chinese state spends, the lower returns are and the higher the debt burden rises. The rule of the factions continues. Unless the state retreats, it may yet bankrupt the country."

~ Leo Austin, from his article 'China’s economy runs on corruption – and the state is scared'
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