Kuora: One simple lesson the U.S. can learn from China
Today’s column comes from one of Kaiser’s answersย originally posted to Quora on November 10, 2017:
What if anything can American policymakers learn from China about how to maintain social cohesion amidst high socioeconomic inequality?
Iโm going to go with the โif anythingโ option in the question and suggest that China doesnโt offer anything by way of viable solutions. What looks like social cohesion in China despite a high Gini coefficient is mostly a product of sufficient forward motion โ along with coercion, frivolous distractions, fairly effective controls not just on media but on the basic historical narrative, and occasional (and โ touch wood โ thus far fairly mild and controlled) appeals to nationalism.
Iโll concede thereโs probably something cultural in there โ a certain acceptance of inequality as natural, with roots in the Confucian myth of meritocracy and the Mencian idea that โthose who labor with their heads should rule those who labor with their hands,โ and I would further concede that the once tight-woven social fabric hasnโt so frayed yet that it can still keep the losers in Chinaโs increasingly cutthroat economic game from falling too far.
But I think these features are not only impossible to really copy and paste onto America, but are on the wane in China and are too weak, ultimately, to counteract the fissiparous forces constantly at work โ forces that, as your question suggests, are made stronger by income and wealth inequality.
Itโs easier to keep your balance on a fast-moving bicycle. But โgrow really fastโ isnโt exactly something that the U.S. can just borrow, either. And while fast growth has propelled Chinese society along for over three decades now, it only worked its magic as long as basically everyone was getting richer โ as long as their slice of this still-fast-growing pie, though not nearly as big as the other guyโs, was still bigger than it was last year. That doesnโt look like itโs going to be the case for all that much longer.
Which leaves the other tools in Beijingโs toolbox. Thereโs coercion, but thatโs hardly something most Americans would see as a best practice worth adopting. Thereโs distraction, but thatโs something at which weโre already much, much better than the Chinese. Thereโs media and narrative controls, but thatโs just goddamn un-American, and besides, itโs probably too late โ that ship has sailed, captained most recently by our โFAKE NEWSโ-barking president, who has led us deeper into the epistemically brackish waters of Post Truth. Trump, though, our Tribune of the Plebs, does seem to have bamboozled the disaffected into believing heโs leading them, pitchforks in hand, against the rich even as heโs doling out massive tax breaks to the rich and shamelessly mortgaging whatever future the plebs might ever have had. Nothing to learn from China there, either.
All then thatโs left โ something that may have worked to delay a reckoning over wealth inequality in China โ is the paean to patriotism. China has Xi Jinpingโs vague and undefined โChinese Dreamโ idea. That vagueness may be one of its chief strengths. Trumpโs version of it โ โMake America Great Againโ โ is distressingly far from the kind of inclusive, expansive, broad-minded, and inspiring idea that, say, a new Great Society might be. Rather, itโs exclusionary, deliberately parochial, inward-facing, rooted in fear, and just plain mean. So perhaps if thereโs anything to borrow from China right now, itโs that countryโs sensible recognition that economic globalization can still continue to bear abundant fruit. Alas, it looks like under this administration, the U.S. will instead reap the bitter harvest of another Smoot-Hawley.
Kuoraย is a weekly column.