Don’t confuse correlation with causation. Chinas current apparent success is based on those sections of Chinese economy that are free to adopt emergent behavior free market capitalism. The CCP has delusions of grandeur whenever they try to claim credit. The smart members know it and are terrified of the implications.
Mercantilism is not free market capitalism. Mercantilism fails over time due to its quasi-central planning and syndicate nature. Those sections of US economy subject to mercantilism forces are currently imploding along with all centrally planned sections.
Economies arise as a consequence of trust. High trust groups need no transaction enforcement. Low trust groups require high level security to protect transactions. The goal should never be high security, as that is fundamentally inefficient and adds an unnecessary premium on transactions. The goal should be to develop high trust groups and maximize transaction efficiency.
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