Political systems and the economy

Economy is controlled by political systems at least to some extent. Use China as an example.

Communism is good in principle to solve the class problem. However, it makes folks lazy and managers not taking risk - your extra effort is not rewarded.

Socialism is just in between the communism and capitalism. Laziness is encouraged and leaders are taking easy steps by buying votes. It happens in Greece, Italy and gradually in USA. The current ratios of debt over GNP in most PIIGS do not allow them to compete.

Does democracy lead to socialism?

Mao was a great revolutionist, and he is respected esp. in China.

Do you remember the Peter's Principle? When a successful manager is promoted to another position s/he has no experience and/or is not qualified for, s/he usually screws up big times. Mao is the poster boy of this principle when he was promoted from a revolutionist to a governor.

The last 30 year success in China is due to: 1. US played China hand against Russia and 2. Deng's reform with the economic special zone which is so simple but so genius. So the political system is as good as how it is administered and some luck helps a lot. Another example is how democracy is mis governed in India. Hence, we cannot conclude democracy is always good. I believe democracy needs a educated and developed country to make it useful.

As Deng said, we have to let some to make money and the 1% capitalists are the ones. We need them to invest so they can hire more folks. Hope the world economy would not go to another recession. The rising market yesterday and most likely today (if most market timers use the 200 day moving average as a guideline) does not mean anything as EU's problems have not been resolved.