Socialism ! Capitalism!

1. Socialism

Cold wars between systems of Capitalist and Socialist have been continued for almost one century. In the very beginning, deriving by the concept of equality the communist regime deprived individual’s properties and eliminated private businesses. They turned to their communist dream to dictatorship that controlled people thought and resulted into alot of unjust imprisonment. They believed that their socialist system was the best system and tried to promote it to the whole world. For that reason they were considered evil and being resisted by capitalist society. We had Korean War and Vietnam War related to that. We developed nuclear weapon also for that.

In 1980s, Soviet’s former president ended its socialist system by just making a declaration. More than 50% of socialist countries in the world disappeared in one night. Today, only a few countries still admit that they are socialist countries and China is one of them. However, the Chinese claimed that their socialist system will have its own characters. For example Chinese government allows the existence of private properties and business. They encourage foreigners to invest in China. It actually means that they are not against capitalists any more. They meanwhile practice capitalist principle to make profit. They let private people run government’s business that had big deficit all the years. They allow them to take the earning or lost and pay tax meanwhile. During that time large number of Chinese workers were laid off which allowed government owned enterprises to gain profit immediately. For the last twenty years those businesses have no competitors in Chinese market. It is said the tax they paid is five times of the private business. However, salary of government employees took was ten times higher than regular people. I discussed this with my friend in Biijing. She told me that before government allowed those businesses kept their profit to make reinvestment. That is why those companies develop so fast. Starting from 2010, all those profit are considered as Government’s income and have to be distributed in a fair way. Bringing down the difference between people’s income will be the major goal for Chinese government in the next five years.

Up to now Chinese government have tight control over businesses as below: military industry; electricity supplies; oil and productions relate to oil; communication system that provide phone service, all the resources such as oil, coal and natural gas; public transportation shippin industry such as airline, railroad and ships in long voyages; financial institutions such as banks. That is why they are able to make big investment such as buy up mines in oversea and build high speed rail road to Europe.

In 2010, Chineses government’s income increase 22% compare with 2009. That allows they spend 1.72 trillion RMB on health care that cover 1.2 billion populations. ( it was such a big deal for us to cover 33 million people’s health insurance) They are thinking about set up social security system for 800 million peasants. Chinese are entitle to collect retirement fund monthly at the age of 55 to 60 years old as long as they pay social security payment for fifteen years. Those funds are not allowed to be used in any other purpose. (We used people’s social security fund to paid welfare fund and post pond American’s retire age) They also provide 9 years free education for children. In the past 10 years they helped 200 million people leave the rank of poverty. Their population is 20% of the world and the poverty people they helped was 75% of the thousand year plan that was promoted by United Unions for eliminating poverty in this world.

I don’t mean that socialism is better than Capitalism. Today Chineser government leaders are not elected by people. They put their opponents in jails. In last year their cadres spent 900 billion RMBs on travels. In the year of 1999 this figure was bigger than the sum of their health care and education budget. Corruption is serious and there is no social watchdog. Now they mentioned about changing their political system for the needs of developing their economics. Mr. Hu talked about maintaining harmony for their society and tell people learn how to accept each others. Mr. Wen told America channel CNN that he would insist improving their political system till he died. It is said today Hu and Wen actually are being attacked by three different powers: People who still believe in Mao’s socialist theory; people inside the party whoare corrupt and those who are victims of the Tiananmen event in June, 4th, 1989. Under that kind of situation Hu and Wen still try to improve their political system. What have we change our system all these years? Nothing! We always believe that our system is the best system and we are alway right. Except creating wars in the other countries to protect our home land we did nothing.

In the US election of 2010, many candidates raise slogans to attack China. They said the Chinese take jobs from Americans. According to data disclosed by Mr. Hu, all together American business have 60 thousand projects invest in China and 75% of them are making profit. In 2008, 146.7 billion dollars worth of their products were sold in the Chinese market directly but were not considered as their imports to China. They sent 72.2 billion dollars products back home and those products were considered China’s exports to the United States.

There were three American scholars researched the cost and profit about Ipod. It disclosed that Ipod’s price is $ 299 in the market. $ 163 was earning of American company. $80 belongs to Apple Company, $75 belongs to the retail companies and $8 goes to the U.S manufactures that provide parts. In oversea, Japan gain $26 for the materials supply and China only get $4 for the installation jobs they did. However $150 was counted as Chinese exports to the United State.

We also accuse the Chinese for controlling there currency rate. From 1994, RMB has already increased 55.2% that actually cancel out profit that the Chinese made all these years. In solving our financial problem we keep printing dollars. A German leader openly commented American’s policy, saying that we control currency rate indirectly by printing dollars. We attack others but do not examine our own behavior . Blaming on the Chinese doesn’t lead us anywhere. It just proofs that our politicians refuse to find out the real reasons that cause our problems. They are still playing games to fool us.

One Response to “Socialism ! Capitalism!”


  1. Kayla Pratka says:

    There are some interesting points in this article but I don’t know if I see all of them eye to center . There is some validity but I will take hold legal opinion until I look into it further. Good clause, thanks and we want more! Added to FeedBurner too.

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