Tapping into China Sage David Goldman

In the excerpt below, Goldman is entirely on target.

It is suicidal to believe that we can win by crippling Chinese technology rather than collaborating with it. Our Universities simply educated a generation or more to oppose manufacturing expansion and even human population growth.

Many conservatives want to blame big business or globalism or unfair trade, or tech monopoly leftism or elite corporate treachery.

But the cause of our decline is not “globalism” or “outsourcing” or big tech leftism. It is absurd to blame US companies or globalists for outsourcing.

The cause is the US government and tort-law gangreen that destroyed our chemical and manufacturing industries. More so, it’s SEC “insider trading” overreach that decimated our IPO market, a government money monopoly that nationalized and denatured our banks and our money, and a sleepy-time US Supreme Court that indulged an administrative state of predatory lawyers and environmentalists.

The notion that the US loses from “globalism” is true only to the degree that globalists are defined as supporters of the UN left and its anti-capitalist animus.

The only economy, as Goldman’s mentor Jude Wanniski has said, is the global economy. If we don’t participate in it we will simply slip and slide into a zero-sum maelstrom of socialist decline and fall.

An old Cold War joke reports an international poll that asks the same question in every country: “Excuse me, what’s your opinion of the meat shortage?”

The Poles say, “What’s meat?”

The Chinese say, “What’s opinion?”

The Americans say, “What’s shortage?”

The Israelis say, “What’s excuse me?”

No Chinese has ever run a community school board, a Little League association, or a volunteer fire brigade.

For the past 2,500 years, and probably the past 5,000, orders in China have flowed downward from the top, through a vertical hierarchy. Everyone in the US has an opinion about politics — we have to choose our leaders and spend a lot of time thinking about it. Our opinion matters. Political opinions don’t have any practical value in China, so the practical Chinese don’t bother having them.

China is run by a self-selecting committee of bureaucrats cherry picked from the top 1/10th of 1% of university entrance exam scores. I won’t live in such a system. If someone tried to replace our Constitution with that sort of elitist arrangement, I would take up arms against it.

But it is a catastrophic error to underestimate the Chinese, and it is merely petulant to complain about how nasty the ChiComs are.

China’s economy will grow this year while ours will shrink. China crushed the COVID-19 pandemic (no, it’s not fake news) while we’re still trying to figure out what to do about it. China well may dominate Artificial Intelligence, the driver of the Fourth Industrial Revolution.

Its government will spend $1.2 trillion on tech investments during the next five years, dwarfing what we spend. We aren’t dealing with a bunch of Marxist ideologues, but with a 5,000-year-old civilization that now wants to turn outward and assimilate most of the world.

Catch the full update here.

Regards,

George Gilder
Editor, Gilder’s Daily Prophecy

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George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology — and its impact on our lives.

He’s an established investor, writer, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

And he’s certainly no stranger to the financial newsletter...

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