this doesn't mean that china has no economic issues at all. real estate, for example, must be properly managed without wiping out everyone's investments.
I don't think preserving investments is going to be the priority there, rather the focus will likely be on preserving jobs. What I think is most likely to happen is that large chunks of the real estate industry become nationalized.
It's a pretty good solution that worked many times in the past. Rich investors are going to lose some money on this, but that's about it and frankly that's not even a negative. Ultimately, the goal should be to remove all aspects of capitalism and move towards a true socialist economy that's a mix of state and cooperative ownership. Doing these kinds of nationalization projects helps with the transition.
this doesn't mean that china has no economic issues at all. real estate, for example, must be properly managed without wiping out everyone's investments.
I don't think preserving investments is going to be the priority there, rather the focus will likely be on preserving jobs. What I think is most likely to happen is that large chunks of the real estate industry become nationalized.
Don't many failed businesses in China become nationalized?
yup
nationalization isn't a miracle solution.
It's a pretty good solution that worked many times in the past. Rich investors are going to lose some money on this, but that's about it and frankly that's not even a negative. Ultimately, the goal should be to remove all aspects of capitalism and move towards a true socialist economy that's a mix of state and cooperative ownership. Doing these kinds of nationalization projects helps with the transition.
i would agree, but 30% or so of the gdp is in real estate. china cannot just lose a third of its economy.
It wouldn't lose 30% of its economy when these companies become nationalized.
I think the biggest thing for them to work out is the Hokuo system (and relatedly rural development in general).