The inevitable result of the centrally planned Asian Miracle Model is credit bubbles and the crippling misallocation of capital in Building Bridges to Nowhere.
Japan’s extraordinary rise from the ashes of World War II created an “Asian Miracle” template that other Asian nations have followed, and continue to follow.The outlines of the model are straightforward.
The growth engine is export-dependent mercantilism: organize the economy to prioritize exports at the expense of domestic income and consumption. The central government manages the mercantilist project in conjunction with favored cartels or state-owned enterprises (SOEs). In other words, The Asian Miracle Model is central planning plus credit expansion plus export-based cartel-capitalism.
The Asian Miracle form of centrally planned capitalism depends on these four pillars:
…click on the above link to read the rest of the article…
