On China

It\’s a system that is capitalism at its most harsh.

Yup. That\’s what\’s getting those 10% per annum growth rates. That\’s what has lifted 650 million Chinese people up out of absolute poverty in recent decades.

Is inequality rising? Yes, but so what? The living standards of those at the bottom are not falling, they\’re rising more slowly than those further up the totem pole.

What all too many forget is that before income and wealth can be distributed, they need to be created. Capitalism red in tooth and claw is very good at that latter.

Thus the solution to abject poverty is indeed that capitalism: once the economy gets close to the technological production frontier perhaps amelioration might be worthwhile: but not while there isn\’t enough weatlh to take all out of absolute poverty.

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