October 18, 2026

When Ignorant Ideologues Take Control Of Major Economic Decisions

October 18, 2026/ Francis Menton

As previously mentioned, I have been reading Frank Dikötter’s trilogy on the history of China during its years under the rule of Mao Zedong (1949-76). Of the three books, the one covering the middle years of 1958-62 is titled “Mao’s Great Famine.” The name given by Mao and his gang to these years was “The Great Leap Forward.”
The story told in this book is the sort of critically important and easily-available information about how the real world works that all our newly-minted elite college graduates have somehow missed. The short version is that a clique of political ideologues with zero knowledge of how things are actually produced takes control of making the major economic decisions. They have what they think are brilliant ideas about how to transform the economy and do everything better. In short order, output collapses and people are starving.
It is impossible not to notice the close analogy between the events that led to China’s catastrophe and the ongoing energy disaster being imposed on various U.S. states and other Western countries by an equally ignorant clique of political ideologues.

September 22, 2026

Mao Zedong Was A Monster

September 22, 2026/ Francis Menton

The 50th anniversary of the death of Mao Zedong has just passed. (He died on September 9, 1976.).
I did not see large amounts of commentary about Mao on the occasion of the anniversary, but everything that I did see was either neutral or positive, with the majority being praise. And as I looked around for any commentary I could find from around the date of the anniversary, most of what I found is again praise.
How could that be? This man was a monster.
Certainly, the death toll for which Mao was responsible was a large multiple of anything ever attributed to Hitler, and also a multiple (although a smaller one) of the carnage committed by Stalin. Does any self-respecting person give effusive praise of either of those two? And if not to them, then why to Mao?

May 06, 2026

May 06, 2026/ Francis Menton

Two articles from the New York Times in the past couple of days describe the widening divergence between the approaches taken by the U.S. and China on the subject of wind energy. I apologize that these pieces are behind the Times’s paywall, but remember that I subscribe there so that you don’t have to.
On Monday (May 4) the article was about the status of wind energy development in the U.S., with the headline “More Than 150 Wind Projects Stall as Pentagon Delays Reviews.”‍ ‍Tuesday’s (May 5) piece covered the same subject in China, headline “China’s Big Bet on Wind Power Is Paying Off.”‍ ‍
These articles once again illustrate the extent to which the U.S. and its people are uniquely blessed in the world.

April 04, 2026

April 04, 2026/ Francis Menton

Back in May 2024, I had a post titled “So How Are Things Going In China?” The post was inspired by a New York Times article of April 15 of that year that had reported that China’s economy had grown “more than expected” in the first three months of 2024; and by a just-issued IMF prediction that China’s economy would grow by 5% in 2024.
To believe the New York Times and the IMF, in 2024 the Chinese economy was growing at an annual rate of 5% or more. For 2025, China again reported a GDP growth rate of about 5%.
Meanwhile, the reported rates for U.S. GDP growth were 2.8% for 2024 and 2.1% for 2025. It looks like China is beating the pants off us. Surely, it can only be a few more years before China’s economy overtakes ours as the largest in the world.
Well, maybe things aren’t quite that simple.

September 28, 2025

September 28, 2025/ Francis Menton

The first eight months of the second Trump administration have seen a sea change in energy policy.
Previously, under Biden, the federal government had undertaken a blowout of hundreds of billions of dollars of subsidies and incentives for so-called “renewable” energy sources, while simultaneously implementing dozens of regulations and restrictions to suppress the production and use of fossil fuels. President Trump has now reversed all of that.
However, please take note of an important distinction: although Trump and Congress have zeroed out nearly all subsidies and tax credits for wind and solar generation and for grid-scale batteries, they have not enacted comparable subsidies and incentives for fossil fuels. Instead, all sources of energy production now must stand or fall without subsidies, based on their ability to fulfill customer demand and to generate profit. All sources of energy are now on equal footing, and without subsidies.
Meanwhile, over in China, billions of dollars in subsidies have flowed for many years into developing the ability to produce the infrastructure for a wind/solar/storage energy system — things like polysilicon, solar panels, solar cells, wind turbine blades, wind turbine nacelles, and battery cells. As a result, China has become completely dominant in the world in manufacturing these and many related items.
So who is making the better energy bet?

September 18, 2024

September 18, 2024/ Francis Menton

China has proudly proclaimed itself to be a Communist country ever since Mao Zedong came to power in the late 1940s. I understand the term “Communism” in the context of a country like China to mean a socialist (state-directed and controlled) economic system with the additional element of political repression allowing no dissent from official orthodoxy.
China’s economic history is a bit more complex than just 75 years of tightly-controlled socialism. Its economy languished (including the usual mass deaths and starvation) for the first 40 or so years of Communist rule.
Next, under party leader Deng Xiaoping and successors from the mid-1980s for about 30+ years, China allowed a substantial private economy to emerge and flourish. During those years it experienced rapid economic growth, and in that very short period of time its economy became the second largest in the world after the U.S. (however, more like 70th place if ranked by per capita GDP).
Then in 2013, current strongman Xi Jinping came to power. In the most recent decade under Xi’s rule, the political repression has been greatly ramped up, the central planners have reasserted their pre-eminence, and the private economy has been gradually strangled.
So how is China faring under its most recent regimen of tightly-controlled socialism, central planning, and state-directed investment?