FAST FIVE: China At The Crossroads

Published by on

The productivity of that capital and talent.

It turns out capital and talent both want what the average citizen / participant in the economy wants: stability and predictability.

If everything you've worked for can be taken from you or you're no longer able to sell and deploy your capital and talent elsewhere, then why gamble your capital and talent in such an unstable, unpredictable economy at all.

Every economy in which capital and talent can no longer count on predictability is an economy at the crossroads. As Luttwak explained, force is not the same as power, though many confuse the two. Power attracts capital and talent because they're being offered stability and predictability. Force tries to shove instability and unpredictability down everyone's throat and compels then to declare their undying loyalty for instability and unpredictability.

But capital and talent vote with their feet.

Categories: ZH