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2012/01/30

China's Socialist Past, Private Incentive and American Thanksgiving -American Thinker

-Great companion to the NPR: Money story "SECRET DOCUMENT THAT CHANGED CHINA" and the author James E. Miller educates Americans about how the Pilgrims used the same socialist idea when they first came to America.  They failed just like millions in China failed.

"The message here is crystal clear: private ownership necessitates prudence.  If there is a choice between hard work or less work, and the subsequent amount of consumption enjoyed by either remains the same, man tends toward the latter.  Risk and investment aren't considered in an environment where high time preferences (consumption rates higher than saving rates) are necessary for survival.  Without capital investment, economies don't progress above a level of minimal subsistence.  Increases in productive capacity, which can occur only by tapping already saved capital, cease to occur.  It's a deadly and impoverishing cycle."





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