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The Mystery of Capital - Assignment Example

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A capitalist economy cannot simply produce wealth by its existence in a country but needs to take further steps to empower people to generate the wealth. According to De Soto, a capitalist economy needs a well-established structure of property ownership in order to produce wealth. …
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The Mystery of Capital
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The Mystery of Capital

Download file to see previous pages... In Communist China, property ownership and rights extend only as far as the Communist Chinese Party goes. The structure of The Party illustrates not only how communist the nation’s political system is, but also how Leninist it remains. It is true that China is not only communist in name. It is true that the nation shifted from its core communist economic system long ago and replaced it with a strict central planning that facilitated the coexistence of commercial state enterprises alongside a vigorous private sector. However, according to McGregor, it is also true that the tension existing within the political structure and the level to which capitalism may benefit the country is inextricably intertwined with how the political structure is permitted to develop the economy. This is in light of the Chinese dictators being keen to maintain a grip on politics by commanding the People’s Liberation Army, propaganda and personnel. All aspects of life, including owning property or conducting for-profit business, are controlled by The Party. Individuals cannot own private property exclusively in a manner that can afford them to use it as collateral and release capital. To be able to run a business and earn a sort of immunity from legal procedures or prosecution, one needs to seek membership to The Party. ...Download file to see next pagesRead More
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