Rare Warning by Peking University Economist: Heading towards “Common Poverty”

  • Translation and comments: Jenny Ball
  • Editor: JIHO

In late August, the CCP’s senior officials mentioned “common prosperity” and emphasized the “3rd(1) distributions.” Mainland economists rarely issued an article on September 1 stating that if the government intervenes more and more and adopts a planned economy, it will lead to “common poverty.”

An article entitled “Market Economy and Common Prosperity” by Zhang Weiying, professor of economics at Peking University, was published on the “Economic 50 Forum” website.

In his article, he first affirmed the market economy, saying, “It can be seen from history that the greatest force against the market economy is the privileged class and those of the vested interests.” “The facts of historical development prove that only the market economy can promote technological progress, and make the new technology commercialize quickly to benefit the general public.  “

Next, Pro. Zhang discusses entrepreneurial activities extensively. He said: “The best way to increase the income of working-class people is to allow entrepreneurs freer and more competitive in the market, not the other way around! If entrepreneurs are eliminated, most Chinese people will return to abject poverty.”

He also said: “We must understand that the money for poverty alleviation is given by the government or charities in the form, but essentially it was created by entrepreneurs. What the government and charities can do is to transfer wealth from one group of people to another. It is impossible to make things out of nothing. It is the entrepreneurs who create wealth that the government and charities use for poverty alleviation…. If the entrepreneurs are not motivated to create wealth, the government or charity will have no money to carry out the task.”

“If you don’t even accept “distribution according to work”, the economy will not develop and everyone has to live a poor life.” Zhang Weiying said.

Finally he said bluntly: “The planned economy was designed by a small number of intellectuals and then imposed on the society from top to bottom by power. Therefore, someone must defend it and vindicate it. The market economy is different. It was not designed by intellectuals, but spontaneously generated from the bottom up… It is the risk politically and even legally for the people to criticize the planned economy while living in such system…”

“If we lose our faith in the market and introduce more and more government interventions, China can only move towards common poverty. Don’t forget that the original intention of the planned economy back then was to benefit the poor, but as a result, more and more poor people were created and they are made even poorer and more miserable than they were in the past.” He said.

Since the beginning of this year, the CCP has mentioned “common prosperity” repeatedly. The meeting of the Central Committee of Finance and Economics of the CCP on August 17 emphasized the “the 3rd distribution”, that is, “the distribution of social resources and social wealth of high-income groups on a voluntary basis via charitable public welfare such as donations and funding.”

In the following week, Tencent announced that it would invest 50 billion yuan (RMB, the same below) to launch the “Special Project for Common Wealth”; when Pinduoduo announced its second quarter financial report, it announced the investment of 10 billion yuan for the “10 billion Special Agricultural Research Project”.

In addition, in the two weeks ending August 31, the term “common prosperity” appeared in the performance reports of at least 73 listed companies.

Bloomberg quoted analysis as saying that Zhang Weiying’s article conveys a very rare cautious attitude towards the Chinese government’s proposal of “common prosperity”. The outside world is worried about the compulsory supervision that CCP imposed to various industries and speculates whether or not China will go backward.

Note:

(1) the CCP has done twice wealth distributions before:

1946 (CCP occupied Area)-1953:the first is called Land reform Movement-to distribute the lands grasped from the landlords to the poor peasants and then to the state.

On January 10, 1956, Beijing first started the realization of an industry-wide public-private partnership. Subsequently it developed all over the country. And all the industries eventually belong to the state. it is regarded as the second wealth distribution.

Comments: It has been the common consent that Chinese people abusively regard themselves as leeks for the CCP, who can cut leeks whenever they feel like to eat. Now it’s the third time nationwide for leek cutting because the wealth is not for CCP to distribute to the poor but to concentrate to a few top families, same as the previous two movements.

Mind you, CCP’s appetite is not only the Chinese leeks, but the leeks of the world. That is the CCP’s globalization. That is the goal of CCP’s bioweapon war with virus and vaccine to hegemony the word.

Wall Streets, world elites, watch out, you will be the leeks CCP wants to eat most.

Source link: hk.epoches.com

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