Wednesday, October 17, 2012

Another Argument for China

Even China has produced people who agree with Friedrick Hayek.

found thanks to The Circle Bastiat:

from a Wall Street Journal article:
Zhang Weiying’s warnings that stimulus spending would lead to malinvestment were once ignored. Now official ministries invite the follower of Hayek to speak.
The economic slowdown, he calmly says over tea, is actually good news that “makes the government think we need to change”—toward reform and away from priming the pump. We aren’t all Keynesians now in China, he insists.
In the mid-1980s, under party leader Deng Xiaoping, officials were moving to liberalize the economy. Yet they were sometimes clueless. After decades of a planned economy, says Mr. Zhang, "the price [of everything] was distorted" and the government's solution was to "set up a price research center with a big computer . . . and adjust prices according to this calculation." Of course, "they couldn't get any results."

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