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    Analysis - The Clash of Capitalisms-The Real Fight For The Global Economy's Future - Stone Center On Socio-Economic Inequality

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    The document discusses the competing models of capitalism in the US and China and their implications for inequality globally. It analyzes whether China's capitalists will gain more influence over the state and if representative democracy could develop in China. It also considers whether liberal capitalist societies will adopt policies to address growing inequality and broaden capital ownership.

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    Analysis - The Clash of Capitalisms-The Real Fight For The Global Economy's Future - Stone Center On Socio-Economic Inequality

    Uploaded by

    Elitur Eli
    201 views3 pages
    The document discusses the competing models of capitalism in the US and China and their implications for inequality globally. It analyzes whether China's capitalists will gain more influence over the state and if representative democracy could develop in China. It also considers whether liberal capitalist societies will adopt policies to address growing inequality and broaden capital ownership.

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    Análisis - Capitalismo

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    Analysis_ The Clash of Capitalisms—The Real Fight for the Global Economy’s Future _ Stone Center on Socio-Economic Inequality

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    The document discusses the competing models of capitalism in the US and China and their implications for inequality globally. It analyzes whether China's capitalists will gain more influence over the state and if representative democracy could develop in China. It also considers whether liberal capitalist societies will adopt policies to address growing inequality and broaden capital ownership.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    201 views3 pages

    Analysis - The Clash of Capitalisms-The Real Fight For The Global Economy's Future - Stone Center On Socio-Economic Inequality

    Uploaded by

    Elitur Eli
    The document discusses the competing models of capitalism in the US and China and their implications for inequality globally. It analyzes whether China's capitalists will gain more influence over the state and if representative democracy could develop in China. It also considers whether liberal capitalist societies will adopt policies to address growing inequality and broaden capital ownership.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The article discusses the U.S. and China's competing models of capitalism - liberal capitalism versus political capitalism - and what this means for future inequality.

    The article discusses liberal capitalism in Western countries versus political capitalism in China, where the state has more control over the economy.

    The author suggests Western societies could move towards a model of 'people's capitalism' with more equal distribution of wealth or risk converging with political capitalism if inequality grows.

    About Focus Areas Research Events News 

    Analysis: The Clash of Capitalisms—The Home / News and Commentary

    Real Fight for the Global Economy’s Future

    December 10, 2019


    By Category

    In Foreign Affairs, Branko Milanovic discusses the U.S. and Outside


    China’s competing brands of capitalism and what it means for Commentary
    future inequality.
    By Tag
    Excerpt:
    Branko Milanovic

    Macroeconomy
    Political capitalism needs to sell itself on the
    Political
    grounds of providing better societal
    Beliefs/Public
    management, higher rates of growth, and more
    Opinion
    e cient administration (including the
    Global
    administration of justice). Unlike liberal
    capitalism, which can take a more relaxed
    attitude toward temporary problems, political
    capitalism must be permanently on its toes. This
    may, however, be seen as an advantage from a
    social Darwinist point of view: because of the
    constant pressure to deliver more to its
    constituents, political capitalism might hone its
    ability to manage the economic sphere and to
    keep on delivering, year in, year out, more goods
    and services than its liberal counterpart. What
    appears at rst as a defect may prove to be an
    advantage.

    But will China’s new capitalists forever acquiesce


    to a status quo in which their formal rights can be
    limited or revoked at any moment and in which
    they are under the constant tutelage of the state?
    Or, as they become stronger and more numerous,
    will they organize, in uence the state, and, nally,
    take it over, as happened in the United States and
    Europe? The Western path as sketched by Karl
    Marx seems to have an ironclad logic: economic
    power tends to emancipate itself and to look
    after, or impose, its own interests. But the track
    record of nearly 2,000 years of an unequal
    partnership between the Chinese state and
    Chinese business presents a major obstacle to
    China’s following the same path as the West.

    The key question is whether China’s capitalists


    will come to control the state and if, in order to do
    so, they will use representative democracy. In the
    United States and Europe, capitalists used that
    cure very carefully, administering it in
    homeopathic doses as the franchise slowly
    expanded and withholding it whenever there was
    a potential threat to the property-owning classes
    (as in Great Britain after the French Revolution,
    when the right to vote became even more tightly
    restricted). Chinese democracy, if it comes, will
    likely resemble democracy in the rest of the world
    today, in the legal sense of mandating one vote
    per person. Yet given the weight of history and
    the precarious nature and still limited size of
    China’s propertied classes, it is not certain that
    rule by the middle class could be maintained in
    China. It failed in the rst part of the twentieth
    century under the Republic of China (which held
    sway over much of the mainland from 1912 to
    1949); only with great di culty will it be
    reestablished with greater success 100 years
    later.

    PLUTOCRATIC CONVERGENCE?
    What does the future hold for Western capitalist
    societies? The answer hinges on whether liberal
    meritocratic capitalism will be able to move
    toward a more advanced stage, what might be
    called “people’s capitalism,” in which income
    from both factors of production, capital and labor,
    would be more equally distributed. This would
    require broadening meaningful capital ownership
    way beyond the current top ten percent of the
    population and making access to the top schools
    and the best-paying jobs independent of one’s
    family background.

    To achieve greater equality, countries should


    develop tax incentives to encourage the middle
    class to hold more nancial assets, implement
    higher inheritance taxes for the very rich, improve
    free public education, and establish publicly
    funded electoral campaigns. The cumulative
    effect of these measures would be to make more
    diffuse the ownership of capital and skills in
    society. People’s capitalism would be similar to
    social democratic capitalism in its concern with
    inequality, but it would aspire to a different kind
    of equality; instead of focusing on redistributing
    income, this model would seek greater equality in
    assets, both nancial and in terms of skills.
    Unlike social democratic capitalism, it would
    require only modest redistributive policies (such
    as food stamps and housing bene ts) because it
    would have already achieved a greater baseline
    of equality.

    If they fail to address the problem of growing


    inequality, liberal meritocratic capitalist systems
    risk journeying down another path—not toward
    socialism but toward a convergence with political
    capitalism.

    Read the entire article by Branko Milanovic in Foreign Affairs.

    Related Research: Capitalism, Alone: The Future of the System


    That Rules the World
     

    FOCUS AREAS FACULTY

    Income & Wealth Miles Corak


    Support the Stone
    Culture & Society Janet C. Gornick
    Center
    Policy & Institutions Paul Krugman
    Contact Us
    The GC Wealth Project Leslie McCall
    Branko Milanovic
    Salvatore Morelli 
    © 2019 The Graduate Center, CUNY

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