State Capitalism (Socialist Capitalism) versus Free Capitalism (Raw Capitalism)
23 Nov 2019

(1) China State Capitalism (Socialist Capitalism) comprising of State Enterprises (CCP), Private Enterpreneurship and foreign MNCs - are modeled after Singapore Economic model.
It started with Deng Xiao Peng that learn from LKY.

(2) The State Capitalism has successfully uplifted 800 million Chinese from poverty and build a strong middle and upper income group in China.

(3) The trade negotiation by US want China to adopt "Free Capitalism" - that make US without State Enterprises and State intervention.
This is the crux of the deadlock.

(4) Free capitalism is the main source of income and social inequality that has trigger worldwide global unrest - and give rise to populism and protectionism - phenomenon such as Trumpism and Brexit.
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(1) State Capitalism - State get rich and help individual to get rich.
State redistribute wealth to every individual eg. housing, healthcare, education, social welfare etc.

(2) Free capitalism - State are poor or even bankrupt and need to borrow from banks and private individuals eg USA that are US$23 trillion in debt.

Few individuals are super rich eg microsoft, facebook, amazon, boeing etc.
Many individuals are middle income or poor.
Very wide income gap.
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(1) State Capitalism - State has money and incentive to build public infrastructure like roads, mrt, airport, industrial park, training for individuals to build and maintain the public infrastructure etc - as long term investment to make the County competitive and make the living condition better for the people.

(2) Free Capitalism - State is poor and don't have the money to invest and build public infrastructure - and hence lead to crumbling public infrastructure where roads, bridges, buildings, park etc deteriorate.
It rely on rich private enterprise to provide for public infrastructure - where most of the time, there are no incentive for private enterprise to do so - as there are no return of investment or profit for them.
Thus most of the time, we see many ghetto or slum areas - in free capitalist countries.

(3) Thus State Capitalism (Socialist Capitalism) - has succeeded in uplifting people enmass - whereas Free Capitalism (Raw Capitalism) only succeeded in making few individual super rich at the expense of the mass.
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