State capitalism fosters corruption, allowing smaller circles of state-connected elites to control more wealth. In China, state dominance has meant that "princelings," relatives of leading Communist Party members, have gained control of some of the nation's most powerful companies. Even one Chinese government study of 3,000 of the nation's richest businesspeople admitted that a significant majority are related to top officials.
Now let's compare this to market capitalism. Don't get me wrong, I don't support China in their quest to become...Well...Whatever the hell it is they feel they're becoming, but the division of wealth in North America is growing as well.
The US Government recently demonstrated they are not concerned with people losing their homes, but are willing to jump in and approve a merger that would have bankrupted the 5th largest financial institution in America. Regulators (the FED) made it clear when doing this, that they do not feel they are responsible for the bad decisions of citizens, but are on the hook for helping out corporations. How in the hell is that a democracy?
My point is, if democratic Governments like the US are going to criticize the way the Chinese go about business, they'd better take a look in the mirror. Why was bailing out a large bank more important than people losing their homes? Were they worried about CEO's losing their jobs?
Authoritarian Governments are more worried about obtaining personal wealth, that's for sure. My concern is that I don't see how that's any different than the past eight years in the US. Tax breaks for the rich, widening gaps between rich and poor, the US's top 1% of the population now controls 27% of the wealth.
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