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Wednesday, January 03, 2007

Billionaire Chinese

Interesting:

Company executives in China were the big winners of last year’s soaring stock market, with the top 50 executives worth nearly 40 billion yuan (5.1 billion dollars), according to state media.

None of the top 50 was worth less than 200 million yuan and half of the top 50 saw their stock portfolios break the 500 million yuan mark, the official Xinhua news agency reported.

The take off in executive fortunes has been set off by shareholder reforms which allow previously non-tradable state-owned shares to be converted into ordinary stock and turned into cash, the report said.

Meanwhile the Chinese people themselves are becoming more prosperous.  I would think that this is a good thing, except for the fact that these people are billionaires because the Chinese Government picks winners and losers.

Maybe some of these guys started managing small state owned factories and built them up.  So they deserve some of the profits.  But was the market in China free for the competition.  Or did they become rich because of connections?

The one thing to remember is that economics is not a zero sum game.  We are better off with economic progress by whomever and wherever it takes place.

Comments

The one thing to remember is that economics is not a zero sum game.

This is true of a demand system, but not true for a command system, especially one based on Marxism.

I wonder why the lefties in this country aren’t bellyaching about the “bloated” or “excessive” executive compensation in China?  Maybe it’s like the environmental extremists don’t seem to care about the “fragile deserts” in the ME.  Maybe it’s more about politics than principles.


"Give the lefties a pile of money, and they’ll spend it buying votes.” - Rush Limbaugh on the “bailout”.

robert108 on January 3, 2007 at 09:30 am

The one thing to remember is that economics is not a zero sum game.

Whistler,

In deference to the economics-challenged Lefties who periodically post comments here, perhaps you might want to explain the term “zero sum game.” Folks who cannot fathom supply and demand and the various functions of pricing aren’t very likely to understand this concept either.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 3, 2007 at 11:22 am

I dunno Bat.  I kind of like keeping them in the dark.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on January 3, 2007 at 11:32 am

Whistler,

Okay by me.  From now, instead of labeling them “socialists” or dimwits, or intellectually illiterate twits, we can simply call them mushrooms… scientifically regarded as a type of fungus, I believe.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 3, 2007 at 12:21 pm
Avatar for Mickey

lol

As China becomes more capitalist and economically sound, sooner or later the liberal disease will infest them, and then we can get the last laugh.

Mickey on January 3, 2007 at 05:53 pm

One might think that the poop will hit the fan when the Chinese people think the government can afford to rhetoric the commies have been spewing since the revolution.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on January 3, 2007 at 05:56 pm

Not agreeing or disagreeing with anything said here, just making a book reccomendation:

China Inc.

It’s an eye-opener, for sure.


[Feet make good soup!]

Marty on January 3, 2007 at 07:59 pm

Can you just read it aloud and email it to me in MP3 format?


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on January 3, 2007 at 08:19 pm

Reminds me of an old chat-room buddy from #html, who kidded newbies:

“I write HTML by hand.  With a pencil and paper, and then scan it in with OCR”.  rasberry

One of the advantages of taking public transportation to work everyday:  I finished 54 books in 2006.

China Inc was one of the top 5 from 2005.  Read it, you’ll be glad you did.


[Feet make good soup!]

Marty on January 3, 2007 at 08:32 pm

Well I did get a Barnes and Nobles Gift Card for Christmas.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on January 3, 2007 at 08:52 pm

Whislter, buy something pretty for your wife with that, and get yourself a library card.  Best bargain in town—besides, you’ve already paid for it with your taxes.


[Feet make good soup!]

Marty on January 3, 2007 at 10:10 pm
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