Honestly I am really drained after spend more than eight months blogging on U.S.- China Trade Wars hoping to provide more perspective to the pubic to mitigate the situations we are in. We are disappointed to see the drag of trade war morph into currency and technology war and conflicts into many more other arenas. There is no denial that over the decades the baggage/problems have accumulated to a point that they are very hard to go around anymore. We can avoid the problem, but we can not avoid the consequence of problem. I do not have better ideas to get out of the dilemma, but we can have an last summary of the latest development.
========THE PROBLEMS WE STUCK IN =========
From United States’ point of view, we have skyrocket national debt and increasing yearly budget deficit. The education system can not provide enough talents to keep up with its developmental need of science and technology. Its manufacturing outsource has dramatically reduce the income of middle class. The wealth and income gap increased drastically. But some of the issues are caused by globalization, which limited the impact of United States governments to ameliorate its domestic problem. China’s power expansion in the Pacific Rim has posted threat to U.S interest in the area. Trump administration is requesting China to have structural changes: stop forced intellectual property transfer, remove trade restriction in China market, stop unfair practice of government supplement to its industries; open up Chinese financial market, purchase American agriculture products. U.S perceive that China’s political system prevent its optimal economic performance.
From China’s point of view, China has a vast market (that was what attract U.S corporations), which gave it upper hand to bargain in trade. China has invested enormously into transportation (highway, rail road, ports), urbanization, manufacturing facilities, education and labor market which give it competitive advantage to become world factory. China’s huge trade surplus have been put to purchase U.S government bond to support U.S dollar’s position which is one of the important pillars that sustain US economy. U.S should focus on fixing its own problem rather than point fingers to China. U.S’ abuse of its power (economic, military has long causing resentment from many other countries).
Capitalism, Globalization and Democracy/sovereign interest are three conflicting elements in current social political situation. We can have the combination of any two but will inevitably run in problems with all three together.
• Capitalism run OK within each country’s sovereign boundary, democracy can rebalance by enable government policy to adjust domestically.
• Globalization and sovereign can made to work by negotiating trading agreements and tariff policies.
• Capitalism and Globalization can work if there is a worldwide governing/regulatory body like WTO and get buy-off from participating countries in actual practice.
But sovereign needs/democracy does not reconcile well amid capital’s global outflow. Capitalism since its beginning in the 18th century, has turned into its most destructive phrase of financialisation in pursuit of return. From all aspects – humanity has stretch to maximum the Earth resources, pollution allowance, capitalism development cycle and economic capacity for its endless desire to have more. Everything has nature beginning and ending, just as ocean has ebb and flow we can not control. If we can accept impermanence nature of things in this world, we can avoid many frustrations and use our energy more constructively. As my earlier researches had showed:
- Ten Issues To Address On the Path of Inclusive Economic Recovery 1
- Ten Issues To Address On the Path of Inclusive Economic Recovery 2.1
- Ten Issues To Address On the Path of Inclusive Economic Recovery 2.2
- Ten Issues To Address On the Path of Inclusive Economic Recovery 2.3
- Ten Issues To Address On the Path of Inclusive Economic Recovery 3
- Address the Ten Big Global Economic/Financial Challenges 1
- Address the Ten Big Global Economic/Financial Challenges 2
- Address the Ten Big Global Economic/Financial Challenges 3
So at this point, unless both side compromise to some degree, or we retreat back to solve each’s own problem. Mixing up definitely tangles and complicated the solutions as each country try transferring their problems to the other country instead of take its own responsibility to fix them on their own.
==============CAPITALISM VS. SOCIALISM===========
Buddhism believes that we are born not as a blank slate, but each brings millions of incarnations of work and retribution. Spiritual leader Paramhansa Yogananda, who came to U.S. on mission to disseminate Eastern philosophy, wrote in his book, Autobiography of a Yogi, that he recognize milions and millions of his past incarnations in his meditation state. Each individual’s evolutionary path is different, and so is talent. Classical text told of story that a King reallocated the wealth several times throughout this Kingdom to make it more equally among this people, each time only to end up having wealth gaps reemerged over time. Each of us born to this world coming with certain attributes of opportunities and challenges in different areas based on our evolutionary past.
On the other hand, Mahayana Buddhism advocates six perfections (paramitas) as paths to obtain enlightenment: generosity, morality, patience, energy, meditation, and wisdom. In generosity, we can give out our wealth, knowledge, time, support to others instead of greedily pursuit to selfish gain. But Buddhism also teach people first to sustain themselves and help others when they are able to.
When we argue about socialism and capitalism as better societal organization system, I truly believe both have their places and neither is adequate without the backing of spiritual teaching and practice. For that there need to have much more research.