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Duane McMullen's avatar

Western democracies tend to restrict supply and subsidize demand. This is Arnold Kling's formulation.

In China, it is the opposite. Subsidize supply and restrict demand.

Democracies want stuff, so individual demand is subsidized (rent control, health care), but democracies dislike the trade-offs, so NIMBY and webs of rules that seriously inhibit the larger scale coordinated activity needed to create supply. Anything that doesn't come from China is expensive and in short supply - housing where people want to live, medical care, electricity generation.

Autocracies like China want control, so effort is forced into areas more easily controlled - like large scale coordinated activity needed to produce supply. Big projects like factories, high speed rail lines, apartment complexes with gates and control points. Actual consumption is the total of innumerable hard to control acts of individual agency. This is a risk, so restricted. This system naturally produces more than it dares allow itself to consume, so cheap exports abroad, vast empty apartment complexes and major projects that will never return the resources consumed to produce them.

Neither approach is sustainable, each leans on the other for support.

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Jordan Schneider's avatar

agree with this critique! I think the leninism does get underplayed in the book. for the bigger, more ambitious version of this line of argument do check out jon sine's take here https://www.cogitations.co/p/litigation-nation-engineering-empire

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