Wednesday , November 13 2019
Home / Mike Norman Economics / Capitalism–not so alone — Michael Roberts

Capitalism–not so alone — Michael Roberts

Summary:
Marxian economist Michael Roberts reviews Branco Milanovic's Global Inequality. And finds it wanting. It's the assumptions, stupid.In my view, the problem is the same as it is with almost economists with whom I am familiar. They don't read widely out of their field in relevant fields like sociology, political science, and history and anthropology. They look through an economic lens that is colored by their ill-informed assumptions regarding context. Used to mathematical modeling, they are either uncomfortable with "the messy stuff," or they have an ideological bias that influences their point of view.I would characterize my difficulties with Milanovic's work as resulting from lack of nuance. But I think he is drastically wrong in lumping China together with Western developed countries as

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Mike Norman writes The New Anti-Capitalism — Harold James

Mike Norman writes Shoring up capitalism — Chris Dillow

Edgardo Sepulveda writes Behind Chile’s political crisis

Mike Norman writes How to Rethink Capitalism — Simon Johnson


Marxian economist Michael Roberts reviews Branco Milanovic's Global Inequality. And finds it wanting. It's the assumptions, stupid.

In my view, the problem is the same as it is with almost economists with whom I am familiar. They don't read widely out of their field in relevant fields like sociology, political science, and history and anthropology. They look through an economic lens that is colored by their ill-informed assumptions regarding context. Used to mathematical modeling, they are either uncomfortable with "the messy stuff," or they have an ideological bias that influences their point of view.

I would characterize my difficulties with Milanovic's work as resulting from lack of nuance. But I think he is drastically wrong in lumping China together with Western developed countries as "capitalist." China is Exhibit A of market socialism in the while markets underpin the Chinese economy giving it the appearance of being capitalistic.

The Chinese system is essentially a command system controlled by the CCP, and the CCP controls the commanding heights of the Chinese economy and Chinese society, either directly or indirectly. This is a curious melding of the ancient Chinese imperial system based on meritocracy (Mandarinism), Confucian culture, and Western ideology (Marxism-Leninism).

The goal of US policy with respect to China to turn it into a capitalist country that international capital, centered in the US and UK, can control. The eyes of the Western elite, China is Communist in spite of its market trappings. It has now become clear that the market trappings are never going to lead China to convert to Western liberalism without being subjugated first. So now subjugation is on the table, and the object of the trade war is aimed at forcing China to submit.

In the view of many political and military leaders, geopolitics is a game of king of the mountain. There is always a jockeying for dominance, which means submission of the rest. This is about global domination with trillions upon trillions on the table. The stakes have never been higher. Go figure.

Michael Roberts Blog — blogging from a marxist economist
Capitalism – not so alone
Michael Roberts

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *