5 here5 here7 here7 herehereChapter 6: The Big Cycle of China and Its Currency2020-10-09Journal7 here5 here\[15\] Though I’m no expert on Marxism the dialectical materialism process sounds similar to the process that I discovered works well for me by struggling with conflicts, reflecting on them, writing down the principles, and improving—and doing that over and over again in a never-ending evolutionary “looping” way.  Also, for reasons previously explained, it is my opinion that capitalism—an incentive system that rewards people who are the most inventive and productive and that has capital markets that allocate resources in ways in which people are rewarded for good capital allocation decisions and penalized for bad ones—will lead to a) more productivity over the long run (hence a bigger total pie), b) big wealth differences, and c) capital markets (especially debt markets) that become overextended and then break down and, when there is a capital market/economic breakdown at the same time, there are big wealth and values differences, which will lead to some form of revolution (i.e., there can be harmonious productive ones, though most have great conflict and are destructive before they are productive).  So, thus far the way Marx appeared to see things and the way I see things isn’t radically different, though what we would choose and what we would think should be done is probably radically different.  If you asked me a) whether I’d rather have what capitalism has delivered or what communism had delivered, and b) if I think the capitalist path we have seen is more logical than the communist path we have seen, I’d say yes to both questions.  On the other hand if you asked me a) if both the capitalist and the communist systems need to be reformed to make the pie grow better and to have it distributed better, and b) if Marx’s dialectical materialism approach to evolving and my 5-Step Process to evolving are broadly similar and the best ways of evolving well, I would also say yes to both questions (without getting hung up on how exactly these two approaches are different).  In other words I believe, and it sounds like Marx believed, that evolving from conflicts, mistakes, and the learning from having these is the best approach.  Also, as far as the wealth gap goes, we both see that it has been a big issue throughout history that can threaten all systems.  Lenin built on what Marx said to create a two-step process of building the state in which there is at first dictatorship by workers through “democratic centralism” in which there is a voting process of members of the party which would eventually lead to a higher communist state in which greater prosperity would exist, which is the second stage.  Mao liked the Marxist-Leninist approach in which the party represents the working people who rule over a socialist state that will achieve higher levels of development and eventually achieve communism in which there is common ownership of the means of production and social and economic equality.  In other words they believe that achieving the ideal of communism of “the distribution of wealth from each according to their abilities to each according their needs” comes at the end of a very long evolutionary process.  Deng Xiaoping reiterated this view that communism and the capitalism he was employing were not at odds in an interview with an American TV journalist when he said, “According to Marxism, communist society is based on material abundance…Only when there is material abundance can the principle of a communist society—that is, ‘from each according to his ability to each according to his needs’—be applied.  Socialism is the first stage of communism…We permit some people and some regions to become prosperous first for the purpose of achieving common prosperity faster...The first stage of socialism takes a long time…Despite the rich/poor divide, wealth in China is more evenly distributed than in any time in history…The CPC can see the gap widening and is taking action…”  Maybe that’s true and maybe it’s not.  Time will tell.  To me thus far capitalism—in China or anywhere else—is winning the competition.  However, nobody can argue that the Chinese mix of communism and capitalism has not produced remarkable economic results over the last 40 years. Continue reading…