Not so long ago, before the shakiness of the Chinese economy started shaking the rest of the world’s stock markets, some reputedly smart people were insisting that China was a model to be emulated. The New York Times’ star columnist and best-selling author Thomas Friedman, for instance, once wrote “Forgive me, Heavenly Father, for I have cast an envious eye on the authoritarian Chinese political system, where leaders can, and do, just order that problems be solved.”
div style=”text-indent:20px;”>It was a damned fool thing to say even at the time, even by the standards of The New York Times’ editorial page, and has since been revealed as such by the full percentage points or more that the Chinese catastrophe seems to be yanking away from the the the DJIA and S&P and the STOXX and Footsie and the NIKKEI and the rest of the acronyms and nicknames of all those panic markets in every nook and cranny of the world. Still, it’s easy to understand the appeal that a system where the reputedly smart people “can, and do, just order than problems be solved” would have to those who think they possess such wisdom and information and elite status that they could and would do exactly that if only the great unwashed masses of the body politic would allow them the power. China was reporting extraordinary growth in its gross national product, which according to some accountings had already overtaken America’s as the world’s largest, and the country was blissfully unbothered by anything resembling the fiscally sober and free-market-loving elements of America’s Republican Party, so a cause-and-effect relationship of course seemed obvious to a certain sort of so-called liberal, and the example of authoritarian rule that momentarily seemed to be working was simply too much for the more authoritarian-inclined yet so-called liberals to resist.
Now that it has become so quantifiably apparent on the stock market boards that the people running the Chinese economy can’t and haven’t solved all its very serious problems, the argument for letting a few reputedly smart people run a country is harder to sustain. The Chinese invested borrowed billions in a variety of bridges and infrastructure projects and entire new gigantic cities, just as the reputedly smart people on the American left would do, but the bridges mostly led to nowhere and the infrastructure projects were largely pointless and the cities remain uninhabited, and there’s nothing resembling the fiscally sober and free market-loving portion of the Republican Party around to be blamed for the obvious mess.
The worst possible outcome for America’s economy might yet be blamed on that same portion of the Republican Party, and some self-described or barely-disguised socialist might persuasively make the argument for letting a few reputedly smart people run the whole economy and the rest of your life, but at least the fiscally sober and free market-loving portion of the Republican Party will be able to make a plausible argument. We’re as alarmed as anyone else about this stock market dive, and well understand where it might lead, but we’re clinging to a faint hope that at least it won’t lead to a Chinese-style authoritarianism.
— Bud Norman