China and Ludwig Von Mises

Ludwig von Mises

No very deep knowledge of economics is usually needed for grasping the immediate effects of a measure. But the real task of economics is to foretell the remoter effects, and so to allow us to avoid such acts as attempt to remedy a present ill by sowing the seeds of a much greater ill for the future.– Ludwig von Mises

Baron (von) Mises is an oft-quoted godfather of modern economics. Though US economists and politicians quote him frequently they usually ignore his advice in practice. Electoral cycles and quarterly profits outweigh future consequences.

In China the reverse is true. Government officials have all been required to study Von Mises at the Central Party School and, being typically long-sighted Chinese, they employ their staff economists as Mises suggests: foretelling the remoter effects of their proposed policies.

Which is why today, 35 years after beginning their experiment with Capitalism, they are still on target. And why the West is not.

Capitalism makes a good servant but a cruel and improvident master...