What Type of Government does China have?

February 15, 2017

By definition, as you will learn from this post, 21st century China is not a socialist and/or Communist country, even though it is still labeled as one. It is also not a capitalist country.

Socialism is a system where there is no private property and the means of production are owned and controlled by the state. But in 2014 Bloomberg reported that private companies are driving China’s growth. Only 25-percent of China’s industrial output came from state-owned enterprises in 2014.

Communism is a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs. When Mao died in 1976, China moved away from this political theory by ending Mao’s Cultural Revolution and arresting the Gang of Four, who planned to lead China and continue the Cultural Revolution’s class war forever.

Then there is capitalism that is an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Since about 25-percent of China’s industry is still state-owned, China clearly isn’t a capitalist system like the United States is.  The evidence for this was on display soon after the 2007–08 global financial crises created by U.S. Banks and Wall Street greed that caused millions of Chinese to lose their jobs in private sector manufacturing.

That’s when China’s government stepped in.

The Global Economic Crises and Unemployment in China reports, “The state provided subsidies and basic entitlements to urban workers and their families in an effort to maintain social and political stability within the subsystem … the government has poured billions of dollars into public works designated for road and rail transportation improvements. These projects have created many jobs for migrant labor.”

What else do we know about today’s China?

China has one political party with 85-million voting members; it’s one of the largest political parties in the world. — Britannica.com

More than 600-million rural Chinese vote in village elections. New Politics reports, “Elections of Village Committees and Village Leaders in China’s approximately 950,000 villages began in 1989 as part of a wider village self-government movement.”

China has its own Constitution from 1982 that includes Amendments.  For instance, the president of China is limited to two 5-year terms and can be impeached.

There is also a mandatory retirement age that comes with a pension.

However, every year, China’s president is listed as one of the world’s dictators by elements of the U.S. media, but under China’s Constitution, the presidency is a largely ceremonial office with limited powers. This doesn’t fit the definition of a dictator who holds absolute, imperious, or overbearing power or control and who is not responsible to the people or their elected representatives.

How are China’s representatives elected?  About.com reports, “China’s representative elections begin with a direct vote of the people in local and village elections operated by local election committees. In cities, the local elections are broken down by residential area or work units. Citizens 18 and older vote for their village and local people’s congresses, and those congresses, in turn, elect the representatives to provincial people’s congresses.

“The provincial congresses in China’s 23 provinces, five autonomous regions, and four municipalities directly ruled by the Central Government, special administrative regions of Hong Kong and Macao, and armed forces then elect the roughly 3,000 delegates to the National People’s Congress (NPC).

“The National People’s Congress is empowered to elect China’s president, premier, vice president, and Chair of the Central Military Commission as well as the president of the Supreme People’s Court and the procurator-general of the Supreme People’s Procuratorate.”

Let’s look at how the United States elects its president.  Political Parties that are private sector organizations allow party members to vote in state primaries. These primaries are not public elections because most of them only allow registered party members to vote.

Donald Trump, for instance, only won a little more than 14-million votes from registered Republicans to end up representing the Republican Party as its presidential candidate in 2016, and this is in a country that has more than 200-million registered voters. Hillary Clinton had more than 16.8 million votes from the Democratic primaries.

The winners (Trump and Clinton) moved on to campaign in the national election that is held and monitored by the public sector in each state.  In the 2016 election, Donald Trump won the Electoral College vote 303 to 235, but he lost the popular vote 62,979,879 votes to Hillary Clinton’s 65,844,954.

Does this seem strange?  Is there any other republic in the world where the winner loses the popular vote?

Last, a republic is a state in which supreme power is held by the people and their elected representatives, and which has an elected or nominated president rather than a monarch.

After reading this post, what type of government do you think China has?

  1. a dictatorship
  2. a socialist state
  3. a communist state
  4. a capitalist state
  5. a republic
  6. A hybrid capitalist-socialist republic
  7. None of the above

 

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What happens when any Form of Government becomes destructive and many people suffer?

March 1, 2016

I was recently asked, “What can China learn from the US political model? American government is looking more and more like ‘of the 1% by the 1% and for the 1%’!”

My answer follows: If China learns anything from what is happening in the U.S., it’s to keep a balance between socialism and capitalism and not let socialism dominate capitalism and capitalism dominate socialism.

Capitalism benefits the 1% – everyone cannot be a winner even though many of the wealthy think everyone can make it like they did and they look down on and discriminate against everyone who doesn’t make it. After all, everyone has the right to work harder to make it, right, even on poverty wages with no benefits?

Socialist programs benefits the other 99% where many can end up suffering horribly without a safety net.

I’m not talking about pure socialism where the state—representing the people—own everything: the land and everything built on and under it, the means of production and the retail sector that sells what’s produced. I’m talking about social safety-net programs like affordable and/or free universal health care for every citizen no matter how much they earn, a livable wage, Social Security for when people are old and retire, unemployment insurance for people who have lost their jobs, labor unions that represent the workers, and disability insurance for workers injured on the job and even from accidents outside of work, who can no longer work because of the injury.

The capitalists, the 1%, will moan and groan because of these social programs that protect 99% of the people—the workers that helped make the 1% wealthy and powerful. The 1% will moan and groan because enough is never enough and the social programs that protect the 99% cut into the profits and the growth of their wealth and power. Angry, the 1% will bribe as many leaders in the country as possible to get rid of the socialist programs that protect the 99%. The corruption and lies will be rampant, because money buys power and power corrupts and absolute power corrupts absolutely. Wealth and power is similar to cancer and to contain that disease and protect the 99%, the government must walk a fine line to keep the balance.  The 99% must be stopped from destroying the 1% and the 1% must be stopped from causing the 99% from suffering due to the greed of the 1%.

The 99% can cause tyranny and suffering too because the mob is dangerous and powerful when united against tyranny, and the 1% can quickly become the tyranny behind the suffering caused to the 99%. That is what is happening in the United States today. The 1% is systematically attacking every public sector socialist program that protects the quality of life for the 99%.

The U.S. Declaration of Independence, that is not the law of the United States—the U.S. Constitution and Bill of Rights is the law that guides America—says it best:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.”

A government’s struggle to keep that balance between capitalism and socialism never ends because the temptations to lean toward capitalism’s 1% are many, and it has been said through the ages that every person has a price and can be bought one way or the other. Government also must resist the cry of the mob, loud and organized factions of the 99%, that demand more from the social safety net. In the end, it is up to knowledgeable, honest voters to help keep that balance in place.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

#1 - Joanna Daneman review posted June 19 2014

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Will the U.S. Cultural Revolution, based on Greed and Power, rival Mao’s in Suffering and Loss?

February 9, 2016

The difference between the current Cultural Revolution in the United States and Mao’s in China (1950 – 1976) is that this unique American Revolution is from the top down instead of the bottom up. In China the majority of the people supported the Chinese Communist Party against the Nationalist Party in a Civil War that raged for decades (1927 – 1950).

But in the United States, the revolution is being led by the wealthiest 0.1% of Americans: for instance, Bill Gates, two of the four Koch brothers, the Walton Walmart family, Rupert Murdock, Wall Street, Corporate America, Hedge Funds, recently Mark Zuckerberg of Facebook, who was recruited into the Gates Cabal, and a few other poorer billionaires, for instance Eli Broad in California, a billionaire who made his money in real estate and who is currently funding a campaign to take half the children in the public schools in Los Angeles and move them into private sector, autocratic, opaque, often fraudulent, for-profit corporate charter schools that are often worse than the public schools they replace, according to more than one study out of Stanford. “75 percent of charter schools showed either no significant difference or were significantly weaker than traditional schools.” – Desert News

During Mao’s Cultural Revolution, the end goal was to end capitalism and support socialism to reduce the suffering of the majority of China’s people who lived in extreme poverty. In America’s current Cultural Revolution launched by President Ronald Reagan with his failed trickle-down economic theory, the goal has been to privatize and/or weaken the government by eliminating the public sector: public education, health care,  public police, health care for veterans through the Veterans Administration (VA), the U.S. Postal Service, the U.S. Military, Social Security, Medicare, Obamacare, etc.

The most recent incident of crimes against humanity in this U.S. Cultural Revolution that has been slowly gaining steam since Reagan are 10 Things They Won’t Tell You About the Flint Water Tragedy, but I Will by Michael Moore.

Moore starts with, “While the Children in Flint Were Given Poisoned Water to Drink, General Motors Was Given a Special Hookup to the Clean Water.” Click the link in the previous paragraph to read the details and to discover the other nine crimes.

The Washington Post reports, how do states support their public schools? Badly, a new 50-state report card shows. The highest grade was a C average (2.5 GPA), and only three states earned it: Iowa, Nebraska and Vermont.

Mother Jones says, It’s the Inequality, Stupid, and then explains what’s wrong with America in eleven charts. “A huge share of the nation’s economic growth over the past 30 years has gone to the top one-hundredth of one percent, who now makes an average of $27 million per household. The average income for the bottom 90 percent of us? $31,244.” Click the link in this paragraph to discover the horrid but true details.

Global Research asks, The Prison Industry in the United States: Big Business or a New Form of Slavery? “Human rights organizations, as well as political and social ones, are condemning what they are calling a new form of inhumane exploitation in the United States, where they say a prison population of up to 2 million – mostly Black and Hispanic – are working for various industries for a pittance. For the tycoons who have invested in the prison industry, it has been like finding a pot of gold. They don’t have to worry about strikes or paying unemployment insurance, vacations or comp time. All of their workers are full-time, and never arrive late or are absent because of family problems; moreover, if they don’t like the pay of 25 cents an hour and refuse to work, they are locked up in isolation cells.”

What has happened over the last 10 years? Why are there so many prisoners?

“The private contracting of prisoners for work fosters incentives to lock people up. Prisons depend on this income. Corporate stockholders who make money off prisoners’ work lobby for longer sentences, in order to expand their workforce. The system feeds itself,” says a study by the Progressive Labor Party, which accuses the prison industry of being “an imitation of Nazi Germany with respect to forced slave labor and concentration camps.”

The prison industry complex is one of the fastest-growing industries in the United States and its investors are on Wall Street.

When President Richard Nixon declared his war on drugs, the average prison population in the United States averaged for decades about 250,000 or less. Today that number is approaching 2.5 million, the largest prison population on the planet, and China is #2 with almost five times the total population.

This American Cultural Revolution that is being led by the wealthiest and most powerful Americans has also waged war against labor unions since the 1960s and as union membership rates declined, middle class incomes shrunk.

Union Membership shrinks along with middle class incomes

The Military Times reports that veterans are against “plans to replace VA health care with a voucher system, an idea backed by some Republican lawmakers and presidential candidates.”

The United States was once proud to have an all-volunteer army but that isn’t true anymore. Foreign Policy.com reveals The New Unknown Soldiers of Afghanistan and Iraq and asks, “Did you know that private contractors in Afghanistan outnumber U.S. troops three to one?”

“Indeed, since 9/11, private contractors have been deployed at roughly the same — or even higher — rates as U.S. troops in support of the wars in Iraq and Afghanistan. This is hard to detail, because the U.S. military has never adequately tracked contractor personnel deployed in support of overseas operations, according to various Government Accountability Office (GAO) reports. (To give one highly disturbing anecdote demonstrating this, while in September 2011 the GAO found that the military could not reliably determine the number of contractor personnel that had been killed or wounded in Iraq or Afghanistan, over the same time period, the Pentagon had accurately been tracking the number of combat dogs killed in both countries.)”

What happens when for-profit corporations take over fighting America’s wars, and who do you think will end up doing the fighting?

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

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The CIA-KMT Heroin-Cocaine Pipeline to the United States

August 18, 2015

The CIA, in an alliance with the Nationalist Chinese (KMT), addicted millions of Americans on drugs such as heroin and cocaine to finance a covert war against the spread of Communism.

The KMT’s leader was the brutal, authoritarian dictator Chiang Kai-shek of Taiwan that the US still supports, and Chiang Kai-shek ruled Taiwan with an iron fist until his death in 1976.

However, it wouldn’t be until the 2000 presidential election in Taiwan that the KMT’s dictatorial hold on power ended.

I first learned of the KMT-CIA drug pipeline into the US in the early 1980s when I read of Congressional hearings leading to the closing of Air America, a covert airline owned by the CIA that was one of the methods used to move illegal drugs out of Southeast Asia and into the hands of US citizens.

After the Chinese Communists under Mao won China’s long Civil War (1927-1949), a large force of KMT troops in southern China fled to the Golden Triangle of Southeast Asia, which is located in Laos, Thailand and Burma. That’s when the KMT became involved in the drug trade with the CIA, and former KMT Chinese generals operating out of Southeast Asia’s Golden Triangle cooperated with the CIA during the Vietnam War to supply American troops in Vietnam and drug addicts in the US with heroin and cocaine in trade for weapons. The drugs were sold to U.S. troops and citizens back home and that money paid for the weapons that were traded for the drugs.

For reminding me of this dark chapter of America’s history (which evidence says is still an open book), I thank 21st Century Marco Polo, a committed and experienced human rights and legal education professional with a history of working internationally throughout the Asia-Pacific region.

In addition, Kevin Ryan writing for 911 Blogger.com reviewed American War Machine written by Peter Dale Scott.

Ryan writes, “This book examines a wide-ranging number of covert US operations since World War II, and, among other things, demonstrates that many of these operations were intimately connected with, and dependent on, illicit drug trafficking …”

The Senophobic, American capitalist obsession with everything Communist led the US down this dark path that introduced an expressway of  heroin and cocaine into the US in what may contribute to the eventual failure of the most successful and powerful democracy in the history of humanity.

The following embedded videos are a four part series of an audio transcript of a 60 Minutes broadcast about the CIA controlled drug trade.


60 Minutes on CIA Drug Smuggling – Part 1


60 Minutes on CIA Drug Smuggling – Part 2


60 Minutes on CIA Drug Smuggling – Part 3


60 Minutes on CIA Drug Smuggling – Part 4

To understand the impact on US society, Drug Rehabs.org says, “The trafficking of illicit drugs burdens various components of domestic financial sectors as individuals and organizations frequently engage in illegal activates to generate income in order to purchase drugs or finance drug trafficking operations. Mortgage fraud (think 2008 financial crises which originated in New York), counterfeiting, shoplifting, insurance fraud, ransom kidnapping, identity theft, home invasion, personal property theft, and many other criminal activates often are undertaken by drug users and distributers to support drug addictions …”

Did you know that Mao, after winning the Chinese Civil War (1926 to 1949) between the Communists and Nationalists, ended drug trafficking and drug use in China in about 24 hours?

Illegal drugs wouldn’t return to China until after Mao’s death when China joined the WTO in 2001, and opened its doors to world trade and capitalism dominated by neoliberal Milton Friedman economics that thinks “Greed is Good!”

Today, there are over 900,000 registered drug addicts in China, but the Government recognizes that the actual number of users is far higher. Some unofficial estimates range as high as 12 million. Of the registered drug addicts, 83.7 percent are male and 73.9 percent are under the age of 35.

But it’s a lot worse in the United States where it is estimated that 23.5-million Americans are addicted to alcohol and drugs. That’s approximately one in every 10 Americans over the age of 12 – roughly equal to the entire population of Texas, and only 11 percent of those with an addiction receive treatment in the U.S.

______________________________

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the lusty love story Sir Robert Hart did not want the world to discover.

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Comparing Cultural Wars: the U.S. versus China

April 4, 2015

In 1965, China’s Mao Zedong launched a cultural war against the excesses of capitalism, and this was led by the people, the workers and their children, and the capitalists in China and anyone who was accused of supporting the lifestyle of the rich and famous was targeted leading to millions of suicides.

For the last few decades, millions of people in the United States have been victims of its own cultural war, but this one is the reverse of the one that was led by Mao in China. America’s cultural war is being led by a handful of billionaire oligarchs who are transforming American into a money making paradise for those who have the most wealth and power.

This morning I read a piece in the Huffington Post that reported Kansas welfare recipients will be unable to get more than $25 per day in benefits under a new law sent this week to Republican Gov. Sam Brownback’s desk by the state legislature. To make life worse for people who live in poverty, the state also issues that welfare in the form of a government-issued debit card and required that they take the money out of debit machines that charge 85 cents for each withdrawal after the first one in a month—a windfall for banks and whoever owns those ATM machines but less money to buy food. The number of Kansans receiving benefits has also declined from 38,000 in 2011 to 15,000 last year, state data show.

It is no secret that Republicans (GOP) have waged war on people who live in poverty for decades—and recently GOP representatives have blamed poverty on the poor. Many in the GOP hate Social Security, Medicare, Obamacare, unemployment insurance, food stamps, abortion, marijuana, women, and even sexual orientation.

In addition, the GOP and the Democrats also have no problem handing out money to private sector corporations. For instance, the U.S. auto industry, banks, and Wall Street firms. In fact, there are elements in both parties who are handing our children to corporate Charters supported by hedge fund billionaires, the Walton family and the Bill and Melinda Gates foundation so those few individuals grow wealthier off taxes that were originally intended to support the transparent, nonprofit, democratic public schools.

How much does the state and federal government give away to corporations? The answer is more than the country spends on food stamps for people living in poverty, who are far from being lazy, because Recent studies show that 49% of all food stamp participants are children (age 18 or younger), and about 50% of the adults have jobs that pay mostly poverty wages, and, in 2013, for instance, the average SNAP client received a monthly benefit of $133.07, and the average household received $274.98 monthly—compare that number with the money corporations are getting from their state and federal welfare programs.

The New York Times spent 10 months investigating business incentives awarded by hundreds of cities, counties and states. Since there is no nationwide accounting of these incentives, The Times put together a database and found that local governments give up $80.4 billion in incentives given away each year compared to about $75 billion in food stamps to people who live in poverty, so they have enough money to eat and not starve.

Don’t forget, when the GOP blames the poor for their poverty and cuts food stamps to families, as Arkansas is doing, the GOP is waging a war against almost 20 million children living in poverty who can’t work to feed themselves.

However, according to The Times, the number of corporate welfare programs is 1,874. Have you heard Republicans or Democrats call for cuts to corporate welfare?

You might want to click on this link from the New York Times that leads to an interactive map and discover how much corporations are earning off federal and state welfare programs that tax payers are financing.

The New York Times identified 48 companies that have received more than $100 million in state grants since 2007. Some 5,000 other companies have received more than $1 million in recent years.

In fact, Politifact.com reports that it’s mostly true that 9 of the 10 poorest states are ruled by the GOP. PolitiFact.com also reports that it is mostly true that 97 of the country’s 100 poorest counties are in GOP ruled states.

The Washington Post reports, “Republican states have pursued economic and fiscal strategies built around lower taxes, deeper spending cuts and less regulation. They have declined to set up state health-insurance exchanges to implement President Obama’s Affordable Care Act. They have clashed with labor unions. On social issues, they have moved to restrict abortion rights or to enact voter-identification laws, in the name of ballot integrity, that critics say hamper access to voting for the poor and minorities.”

The cultural revolution in China that took place between 1965–1976, and the one being waged in the United States today have one thing in common: the public schools and the teachers who taught in them were attacked in China back then (but not today—after Mao died in 1976, China, under new leadership, started rebuilding its public schools and supporting its teachers) as they are being attacked in the United States today, because a transparent, non-profit, public education system where teachers have the freedom to express without fear what they think about current issues to the children they teach, who then talk to their parents, is a threat to the few who want to control the destructive cultural changes taking place, and it doesn’t matter if the cultural war is being led, for instance, by America’s Bill Gates, the Walton family, the Koch brothers or Mao Zedong in China. To drastically alter a culture, the few in power who are behind the changes must silence their critics and create an environment of punishment and fear, and this means silencing the teachers.

______________________________

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

2015 Promotion Image for My Splendid Concubine

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Barry Ritholtz and his “China The Black Box”

April 1, 2015

In China The Black Box, Barry Ritholtz demonstrates a better understanding of China than most U.S. talking heads I’ve read—at least in this piece. If you are willing to sit for a long read, I suggest clicking on the link. He does a good job explaining how China’s economy works and why it might survive for some time without an economic collapse like we saw during the 2007-08 global financial meltdown that started in the United States.

In summary, Ritholtz mentions how several prominent hedge fund managers in the United States have said China is making mistakes economically. Ritholtz says there is no way these hedge fund managers know what’s going on in the Middle Kingdom since China is half capitalist and half socialist and doesn’t fit any Western economic norms.

In addition to what Ritholtz says, I don’t know why anyone who is sane and intelligent would listen to the opinions of hedge fund managers about China. For instance, investopedia.com reports that “Hedge funds have always had a significant failure rate.”

Ritholtz continues: China is a unique civilization state, which gives it a tremendous advantage at this stage of its economic development, because China’s citizens have a singular desire to work hard and improve their material lot. It helps that the Chinese prefer to pay cash for things instead of using credit cards as many do in the United States.

Chinese civilization has periods of order followed by periods of disorder and since China recently emerged from two centuries of disorder, China’s Communist Party has a long way to go before it is their turn to leave the leadership stage.

______________________________

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the lusty love story Sir Robert Hart did not want the world to discover.

Finalist in Fiction & Literature – Historical Fiction
The National “Best Books 2010” Awards

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Honorable Mentions in General Fiction
2012 San Francisco Book Festival
2012 New York Book Festival
2012 London Book Festival
2009 Los Angeles Book Festival
2009 Hollywood Book Festival

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A few China versus U.S. questions I have been thinking about for some time

February 17, 2015

In this post there will be a few questions I’m going to answer, but leave others for you—if you want to leave a comment.

First, the dictionary definition for Communism: a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state.

What about the definition of socialism—after all, capitalists hate both communism and socialism? Socialism means a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

How many of the 1.3+ billion people in China belong to the Chinese Communist Party (CCP)? There are 86.7 million members in the CCP and most if not all of the millionaires and billionaires in China are invited to join the CCP after they get rich and are screened, and many of the members who are not millionaires or billionaires have secure jobs, responsibility, power and earn money legally or illegally, but taking money illegally might be dangerous. The CCP aggressively prosecutes white collar crooks if they catch them and sends some to prison and executes a few—white collar crime is not a safe  profession in China. In fact, CBS reported that “82,533 Communist Party members had been investigated. Some lost their jobs; others kicked out of the Communist Party … And no one, no matter how high-ranking, appears safe.”

With 6.7% of the population belonging to the CCP that means 93.3% are not Communists—they just live in a country where actual ownership of everything belongs to the collective and/or the state. You don’t buy property in China. In urban China, you lease it and you can sell the lease to someone else, but in most of rural China the land is owned jointly by the people and the state. There is no rent, no mortgage and no property tax. You also can’t sell the house you live or the land you farm. Rural Chinese might not earn much money, but they also don’t get evicted by the bank for missing mortgage payments.

There are essentially two kinds of land ownership in China, state ownership and collective ownership. Rural land, or housing land and the household contract farmland, is collectively owned. Farmers are part of the collective community and have property rights to their land, but with restrictions. – China.org.cn

In addition, in the last 30 years, China is responsible for 90% of global poverty reduction. Since the start of the far-reaching economic reforms in the late 1970s, growth has fueled a remarkable increase in per capita income and a decline in the poverty rate from 85% in 1981 to 6.1% below the poverty line in 2014.

At no stage over the past 30 years has the CCP relinquished control of the “commanding heights” or “levers” of the Chinese economy: agricultural pricing, heavy industry, power and energy, transport, communications, foreign trade, and finance (state banks). – Marxism-Leninism Today

China now boasts 350 million middle-class citizens (more than the entire U.S. population). In addition, China has 2 million millionaires and ranks second only to the U.S. in terms of billionaires. Some 100 million Chinese traveled outside their country this year, and spent an astounding $7,500 per person, per trip, the highest in the world. – The Middle Class: China’s Game-Changing Demographics

For the United States, keep in mind that capitalism does not equal democracy. Capitalism is an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state. But a democracy is a system of government by the whole population or all the eligible members of a state, typically through elected representatives—but these days it sure doesn’t feel like it is working that way.

It is possible for a democracy and socialism to exist in the same country.Those countries are called social democracies. In fact, three of the happiest countries in the world are social democracies: Denmark, Finland and the Netherlands. The 10 most socialist countries in the world are: China, Denmark, Finland, Netherlands, Canada, Sweden, Norway, Ireland, New Zealand and Belgium.

There are more than 316.1 million Americans, and how many are successful capitalists? CNN reports that there are 9.63 million millionaires (3% of the population), and 492 billionaires (0.00015% of the population).

Is it possible that in the U.S. the 3.00015% or the 0.00015% want to rule over the remaining 96.99% like the 6.7% does in China for the 93.3%—something to think about? Are some of these U.S. millionaires and billionaires envious of the CCP’s power?

The U.S. has a poverty rate of almost 15%, and poverty has been increasing in recent years. There is also a 2nd poverty rate in the US, and it’s called Extreme Poverty. In fact, in 1900, before the Progressive era launched by President Teddy Roosevelt to make life better for most Americans, 40% of Americans lived in poverty and less than 7% graduated from high school.

Using a World Bank definition, “extreme poverty” is surviving on less than $2 per day, per person, each month. The National Poverty Center finds that 1.65 million American households (not people but families) live in “extreme poverty,” and these households include 3.55 million children.

America has protection for freedom of speech, but China doesn’t. However, the U.S.—even with freedom of speech—has the largest prison population on the planet (2.2+ million), more than China (1.7+ million) that has the second largest prison population, but more than four times the population of the United States.

To compare it another way—the United States has 707 prisoners per 100,000 versus China with 124 per 100,000 behind bars—think about it.

What about cracking down on white collar crime in the United States like China is doing? The New York Times reports, “In Financial Crises, No Prosecutions of Top Figures.” And The New York Times asks, “It is a question asked repeatedly across America: why, in the aftermath of a financial mess that generated hundreds of billions in losses, have no high-profile participants in the disaster been prosecuted?”

For all the problems the U.S. has, I don’t plan to move to China, because the air is cleaner where I live in the United States—but if the Koch brothers and Standard Oil have their way that could change. I also prefer shopping at Costco, Trader Joes, Whole Foods and farmers’ markets for organic fruits and vegetables—although a few U.S. corporations are lobbying to ruin that too.

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Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the lusty love story Sir Robert Hart did not want the world to discover.

Finalist in Fiction & Literature – Historical Fiction
The National “Best Books 2010” Awards

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Honorable Mentions in General Fiction
2012 San Francisco Book Festival
2012 New York Book Festival
2012 London Book Festival
2009 Los Angeles Book Festival
2009 Hollywood Book Festival

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China’s Holistic Historical Timeline