Friday, February 17, 2012

the east is red .... capitalism

Ben Daniels said...
Here's my take (excerpted from page 5):
The partial privatization creates appropriate incentives for free exchange and demands efficiency gains from all enterprises, even government-owned ones, because of the impacts on share price and market capitalization that would result from mismanagement. The dual-track system of marginal privatization is utilized inthis context to create a robust market without eroding the core tenet of socialist public ownership.
http://www.scribd.com/doc/47752272/China%E2%80%99s-Social-Capitalism
paine said in reply to Ben Daniels...
too much non precision
though capitalist at the margin has a nic set of
"possible "..."possible " meanings
---------------------
"the impacts on share price and market capitalization that would result from mismanagement"
no one has yet demonstrated equity markets provide a superior guidance system for corporate enterprise
particularly where funds can flow in by other means
law of corporate funding:
funds will be gotten if they can be gotten
by what ever means necessary
if both operate in a market system
the comparative dynamics of equity centered operations versus
flat out "state enterprise "
is at best ambiguous
----------------
the private margin of a state enterprise
can be as focused
as an efficient incentive plan
for top state enterprise
exceutive agents
on ownership forms
multi level state
and mixed state/public autonomous investment funds
strikes me as quite possibly superior
in many respects
including social welfare as broadly construed...
at least ab novo
then straight out at the extensive margin
private stock holding
paine said in reply to paine...

"Chinese economic actors had their hands tied by the liberal expectations of massive multinationals"
true and maybe sufficient reason
not to bother with private domestic equity markets

let the foreigners equity markets
scrutinize joint venture firm operations
" To seek the wealth of the world, China was forced to play by its rules"
in product quality i agree
in market adaptability providing the world's supply
might be vulnerable if itsa toys in ways
wheat wouldn't be
domestic market absorption capacity
is key to long run full output adjustments
to tradeable output
".. had to be a good global citizen "
that meant help MNCs profit max
a very qualified notion of good citizen
given the forex fiddles and other sources
of foreign de industrialization
" domestic master "
good citizen ?
are you teasing ??
"in order to continue receiving
the rewards of economic success"
- in exporet markets - exploitation max was practiced and is still practiced
relying on foreign consumers in foreign markets to regulate domestic production norms
unrelated to product quality is a joke
anti sweat shop agit prop
is finessed not substantively countered
only union action and community struggle inside china by the han majority itself
can effect real substantial job site improvements and cleaner greener production