Immelt: Communist China 'Works' | The Weekly Standard

Where do these clowns come from?

"China is changing," said CBS host Charlie Rose. "It may be being stabilized as we speak. What does that mean for China and what does it mean for the United States? Should it change expectations?"

"It is good for China," said Immelt. "To a certain extent, Charlie, 11 percent is unsustainable. You end up getting too much stimulus or a misallocation of resources. They are much better off working on a more consumer-based economy, less dependent on exports. The one thing that actually works, state run communism a bit– may not be your cup of tea, but their government works."

Communism never worked. Actually in China, China is doing better since the true communist state was dismantled. Look at Japan, everyone thought tat central planning there worked back in the 1980's. Now that nation is going to go bankrupt.

What the likes of Immelt like is central planning that benefits THEM. GE is one of the biggest beneficiaries of central government intervention through tax, regulatory, fiscal and monetary policy. Of course he likes big government since its easier to have access to government officials than to actually compete in a free market.

The other thing is that their government DOES NOT WORK. Its an authoritarian anachronism that has been the beneficiary of the increase in free market initiatives despite their interventions. However, centrally directed policy will catch up with the nation and the over investment in fixed assets that have been a hallmark of China central planning will not pay off as it should. People will have lower incomes than they otherwise would have had if the market was allowed to function properly.

Immelt: Communist China 'Works' | The Weekly Standard