1. Without Ownership, there is no Exchange
If the state forbids you from owning anything then you have nothing to exchange.
2. Without Exchange, there are no Prices
If nobody has anything to exchange then there is no point having a price.
3. Without Prices there is no Economic Calculation
If you don’t have a pricing structure then there is no real market. You can’t have a market without prices.
4. Without Economic Calculation, Production Decisions are made in the Dark
Without knowing the economics of making and doing things they are literally done in the dark.
5. When that happens, Basic Needs go Unmet
Guess what, eventually it fails and every one suffers and it happens fast.
Communism always fails or does it?
The scary part is that now China is going to attempt some reformed new ideological version of it!
How so?
Three technological advances are going to be too desirable to not utilise and attempt centralised control for the CCP (Chinese Communist Party)
Central Bank Digital Currency
AI big data control
Robotics
Central Bank Digital Currency
This will allow the government and the controlling party the ability to utilise the smart contract technology (programmable money) to mass affect. They will have god like power over the every day money that citizens utilise in China. They can individually control, target, retract, add, interest push and behaviourally manipulate everyone in that system. Want to buy your food this week? Did CCTV with its facial recognition tech catch you in the act…? Sorry no food this week until you learn!
AI Big Data
Many of the failures that led to the downfall of the last largest communism experiment ever, the USSR, were due to the unimaginable task of controlling production and supply/demand from centralised control centres. China will see AI and Big data as the magic pill to this problem. AI will not need humans to plan the production and supply requirements of its nation.
Robotics
All the internal communism revolutions of unhappy people (worker slaves) would be a thing of the past if you can replace all the menial and labour based jobs with evolved technology, robotics and drones. This will come faster than many think (look at Amazon). Logistics is already doomed from a “driver” job perspective. The majority of repeatable and manual jobs will disappear rapidly in the coming years.
So now the CCP has solutions to the main issues that caused all the previous communist states to fail…
The only issue they have now is what to do with all the humans that are now surplus to requirements. What will a nation of 1.2 billion people do with its citizens…
We will leave that to your imaginations. Here at The Wealth Gap we don’t like the thought of a small elite having absolute power over the lives of 1.2 billion people.
Till next Time
The Wealth Gap Team