Quote:
Originally Posted by HansTWN
You must have read about the milk powder shortages everywhere. Problems like that exist because even Chinese consumers don't trust Chinese brands. This is just one example. And, given my long experience in China, neither do I.
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Funny, I thought problems like that exist because they don't have a truly free market. In a free market, a shortage would lead to a massive increase in price, which would serve as a signal to producers to make more to scoop up as much profit as they could. As production ramped up, the demand would decrease and the price would eventually settle down. In a centrally-controlled economy, the price would be mandated and the signal to make more would never make it to the producers, who in fact wouldn't be permitted to make more than their required quota.
This is basic, classical economics, as taught by Ludwig von Mises in his 1922 work "Socialism" that explained exactly why socialism could not succeed, long before the Berlin wall toppled or the USSR dissolved.