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2012-08-24

Alternatives provide room for competition and betterness

Comment onJohm Keane “How Not to Think about China”, 24/08/2012, https://theconversation.edu.au/how-not-to-think-about-china-8933

While many in the West may be concerned about the appearance of a different style from the West democracy, I think it may be beneficial to the world and all human beings if there are some alternatives and competition available.

China is still reforming and evolving and its current form may or may not necessarily be an eventual alternative style of democracy, but it has the potential to become one.

One may speculate that some sort of authoritarian social capitalism might be emerging from China that would differ from the current West style democracy. Main differences might include

that it may be a combination of western democracy with eastern stronger states (with a stronger emphasis on more effective collective governing through government, and a market system that would rely more on redistribution for equality purpose to balance the main focus of the current capitalism on capitalists' profits.

Just as competition by market forces is generally good for efficient resources allocation, competition in social and democratic systems can be expected to be constructive and have a positive effect to human beings.

But there is no guarantee that China will develop into a real alternative.

Let’s hope China’s current experience or attempt of an alternate will be positive and constructive to all human beings.

2012-08-14

Relativity in creating fictions

Comments on John Lee "Knock down this great wall of lies" 14/08/2012, http://www.theaustralian.com.au/national-affairs/opinion/knock-down-this-great-wall-of-lies/comments-e6frgd0x-1226449575760
Though John has a point, he has unfortunately stretched the facts, argument and logic too far.

While it is true that there were many wars throughout China's history, is there any country in the world with a very long history that has not seen/experienced many wars?
If leaving ideologies, human rights and other things aside for the moment, in terms of China's strengths and weaknesses in the past 200 years or so, the period China under CCP has been arguably the strongest. Does John disagree with that?
In terms expansionism or not, has China conquered any other country even under the CCP rule? Or has it invaded and occupied any other countries for a long period over the past 200 years or so, including under the CCP rule?
Further, again leaving the ideologies aside, does what the CCP say in terms of China's history over the last 200 years or so facts or fiction?
On the other hand, John seems to create his own fictions here. He seems very good at practicing what Mao's saying - oppose whatever the enemies support and support whatever the enemies oppose, even though he criticise Mao a lot.
As a result, his view is too much distorted and has become fictions itself in terms of China.
In that he is misleading his readers.

2012-08-02

Understand why and how productivity has slowed in recent years


Comments on John Freebairn "Evolution of the productivity pariahs", 2/08/2012 https://theconversation.edu.au/australias-productivity-problem-why-it-matters-8584 and
http://www.businessspectator.com.au/bs.nsf/Article/productivity-australian-economy-private-sector-pub-pd20120802-WS2RU?OpenDocument

I think governments, businesses and economists probably need to have more realistic expectations and understand where the most important constraints to productivity improvements are and how to go about them to help raise productivity.

It probably means quite a number of new points or more creative thinking.

For example, the improvement in the terms of trade, as a luck gift to many Australians including Australian businesses, may mean they don't want to work that hard to raise productivity in the comparative sense, so they are happy to enjoy the life with better living standards. Alternatively, they need to be given greater incentives to work as hard as they did in the of no improvements in the terms of trade to produce the same improvement in productivity.

So this kind of work/leisure choice must be taken into account in analysing our productivity to really understand the true underlying factors on productivity in Australia.

However, I do share Professor Freebairn's view that government has important roles in raising productivity. Freebairn mentioned two of them: government policies such as taxation and government supply of services, like education, law and order.

Another important area the government has an important role is to ensure consumers get the maximum benefits from adequate competition, including from competition from overseas through trade policy.

It has been reported that Australians are charges much higher prices for many products or services than their overseas counterparts. This is not only detrimental to the welfare of Australians, but also is unconducive to competition and productivity.

The government must examine why that has been the case and develop the most appropriate policies to change it.

It is a mystery why the government hasn't done such work for so long.

A better alternative to the NDIS


Comments on Gary Johns "Middle-class welfare must be squeezed to help the disabled" 2/08/2012 http://www.theaustralian.com.au/news/opinion/middle-class-welfare-must-be-squeezed-to-help-the-disabled/story-fn8v83qk-1226440702411

While the NDIS has its merits, I think it would be even better to introduce a national, voluntary and tiered scheme similar in spirit to the proposed NDIS.

Such a scheme should have a standard contribution rates similar to a levy, but whether a person pays or not is voluntary. Besides the standard rates, one can also be allowed to choose a lower rate for a lower level insurance. If a person pays, then he/she and his/her family are covered by such an insurance.

With this voluntary scheme, there is a national register which shows the records of people's "insurance" that will be used for "claims". Low/no income people are also covered, as their taxation records can be matched with to show whether they have paid their voluntary premier or not.

Such a scheme should be better than the current proposed NDIS. It would be a real insurance as opposed to a general taxation/levy, which blurs incentives and responsibilities at may levels including politicians and bureaucrats.

2012-08-01

New application of comparative advantage trade theories


Comments on Christopher Findlay and Dean Parham "
Blurred borders: ‘offshoring’ Australian business", 31/07/2012  http://www.eastasiaforum.org/2012/07/31/blurred-borders/

It seems the new model is a development of the comparative advantage trade theories albeit at the production/value chain as compared to the whole production process.

It also implies that new comparative advantages may have a strong focus on fast innovation and rapid response, as compared to the past simple capital/labor type.

It is a more complex model with fine distinction of elements of sources of comparative advantage.

Economists must also be innovative and creative in theorising new practice and economic reality.

Businesses must also be highly adaptive to globalisation trends and regional and global economic integration.