Tendencies Toward Entropy

It’s pretty clear to see that, for better or worse, governments are more than willing to expand their power, but are generally uncomfortable dismantling any pieces of themselves.  Even politicians elected on their promise to reduce the size of government ultimately expanded their powers when faced with such a decision.

This is the obstacle to the Chinese movement from market forces as a “basic” influence in the economy to a “deciding” influence. If you’re someone with a life-long confidence in your own ability to solve problems as the brilliant technocrats managing the Chinese economy certainly are, its pretty  difficult to rely on anyone else, let alone “market forces” to solve what is a fairly urgent dilemma for the Chinese economy. On the other hand, the retarding lead isn’t a factor in China the way it is in the US.

Reuters‘ has a decent barometer for the success of this year’s plenum over the next few years. Each point in that article involves the government reacting to adverse economic conditions by relinquishing control of the market. Difficult to imagine.