Tuesday, March 17, 2009

Where is the most government control - Communist China or the USA?

An interesting - and hilarious - take on China/U.S. relations Tuesday, March 17, 2009 from the S&A Digest:

Today the federal budget accounts for nearly 30% of GDP - the most since WWII. Add in the highly regulated and highly subsidized health care industry and you've got the government in control of nearly half the economy. Now add in the banking system - which couldn't exist without the FDIC, which would already be insolvent without the backing of Congress. Now add in the insurance industry, which will surely collapse next. Now add in all the state governments' spending and employees.
Most Americans don't understand: The government is now running most of the economy, by a wide margin. And who keeps the government afloat? The Chinese.
Think about that for a little while... The so-called "Communist" Chinese, whose government makes up about 10% of China's GDP and who control the No. 1 freest city in the world (Hong Kong), are now paying for the most government-controlled economy in the world - the so-called "land of the free."

Central planning did not work in the USSR- the top down management and funding from the central committee model was flawed because it did not provide products and services to diverse market segments or the grassroots effectively. Competition, and more de-centralized market choice improved conditions in Russia. Is there a lesson here for the entrenched Ministry of Health and Long Term planning -an organization that dictates market conditions and is a protected public health service monopoly? QJ

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