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?


Iโ€™m going to go with the โ€œif anythingโ€ option in the question and suggest that China doesnโ€™t 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.

Iโ€™ll concede thereโ€™s 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 โ€œthose 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 hasnโ€™t so frayed yet that it can still keep the losers in Chinaโ€™s 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.

Itโ€™s easier to keep your balance on a fast-moving bicycle. But โ€œgrow really fastโ€ isnโ€™t 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 guyโ€™s, was still bigger than it was last year. That doesnโ€™t look like itโ€™s going to be the case for all that much longer.

Which leaves the other tools in Beijingโ€™s toolbox. Thereโ€™s coercion, but thatโ€™s hardly something most Americans would see as a best practice worth adopting. Thereโ€™s distraction, but thatโ€™s something at which weโ€™re already much, much better than the Chinese. Thereโ€™s media and narrative controls, but thatโ€™s just goddamn un-American, and besides, itโ€™s probably too late โ€” that ship has sailed, captained most recently by our โ€œFAKE 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 heโ€™s leading them, pitchforks in hand, against the rich even as heโ€™s 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 thatโ€™s 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 Jinpingโ€™s vague and undefined โ€œChinese Dreamโ€ idea. That vagueness may be one of its chief strengths. Trumpโ€™s version of it โ€” โ€œMake 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, itโ€™s exclusionary, deliberately parochial, inward-facing, rooted in fear, and just plain mean. So perhaps if thereโ€™s anything to borrow from China right now, itโ€™s that countryโ€™s 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.