mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

Communists More Efficient Than Capitalists, says Freescale’s Beyer

Interesting to hear an American CEO saying that the workings of a communist dictatorship are more efficient than the workings of liberal democratic capitalism, but that’s what Freescale CEO Rich Beyer reckons.

 

“It’s the beauty of a centralised economy”, says Beyer, “all they have to do is decide to do something and next week you get the money flowing. With the China stimulus package, it’s the speed of execution which makes the difference.”

 

Since China announced its stimulus, the effects have been remarkable. Bank lending grew 30% in Q109, the Shanghai stock exchange is up 35% this year, the property market is up 30% and Q1 car sales grew 4%.

 

“We don’t do it that efficiently in the USA, nor, I suspect are you that efficient in Europe either, but in China, within a couple of weeks of their stimulus package being announced, people had started ordering product,” says Beyer, “in the US the stimulus has been approved but it’s taking time to spend the money in a way that that’s bringing it into companies and into job creation.”

 

So that’s it. All we have to do is parade a few bank CEOs around Wembley football stadium, shoot them, and the money should start flowing pronto.

Tags: capitalists, china, europe, football stadium, taking time

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16 Comments

  1. David Manners
    August 05, 2009 12:33

    You’re right, Cyberman, a Tory would have licked it then put it in his pocket.

  2. Cyberman
    August 05, 2009 12:31

    Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back? This would never have happened under the Tories.

  3. David Manners
    August 05, 2009 12:25

    An excellent point, Simon, Maybe the question never was Communism or Capitalism? But what’s the best mix?

  4. August 05, 2009 12:03

    What people seem to be forgetting is that China’s development has happened largely as a result of western money, technology and expertise. Just compare the former East and West German systems to get an idea of how communism really ‘works’ when it comes to progress. Without the West, chinese technology would look more like a Trabant than an Audi or a BMW.
    Now, where did I put my shotgun?…

  5. David Manners
    August 04, 2009 16:28

    Yes, John, as in China, they could have signs hanging round their necks explaining their sins as they’re paraded round Wembley Stadium: e.g. ‘I took £1 million bonus while my bank took £10 billion off the taxpayer’ etc. Then they could swallow a £50 note, apologise profusely to the crowd, and get shot.

  6. John Scrivens
    August 04, 2009 16:18

    I like the idea of publicly executing a few bankers, that is definitely worth a try.

  7. David Manners
    August 04, 2009 12:02

    Tom, that is a really great analysis that we have a feudal system where we all pay tax to bankers. Did you see at the weekend that 9 US banks whiuch received $125 billion of US government bail-out money paid $32 billion to 4,700 staff? Who supplied the money? The PBT (Poor Bloody Taxpayer). What could be better evidence that we’ve gone back to feudalism?

  8. Tom
    August 04, 2009 11:50

    Its not about communists and capitalists. The Chinese are repressive but they are rampantly capitalist and mercantilist in economic terms.
    What is worse is the UK and US are not capitalist. What we have is a neo-feudalist system where all economic activity pays rent to a legally privileged overclass. Instead of aristocrats we have bankers.
    The difference between China and the UK is the difference between a government whose focus is on modernisation and development of industry and technology and one which has a ‘post modern’ viewpoint where technology is passe and what matters is banking, lawyers, civil servants and doctors.
    It is the difference between an economy funded by selling useful things that people want at a profit and an economy funded by borrowing money against property and quantitative easing.

  9. David Manners
    August 03, 2009 10:36

    Spot on, Ron, anyone who’d rather be employed as a Chinese worker needs their head examined

  10. Ron
    August 03, 2009 02:44

    Communist governments makes more money, too. I think in Cuba, the average income is $25/month, and in China, an airline pilot makes about the same as a burger flipper. So work hard for the party, comrades. Our civil war got rid of slavery. Theirs restored it. Workers paradise? Right!

  11. David Manners
    August 02, 2009 18:19

    Ben. I’d say a $787 billion US goverrnment stimulus package for US industry suggests that the US government wants US industry to do well

  12. Ben
    August 01, 2009 22:57

    I think the main difference is that the government of China wants Chinese businesses to succeed and earn profits and expand and the government wants Chinese people to become wealthier and better off.
    The US government hates our companies and wants them to be brought to heel, to obey the diktats of elites, and to financially reward select political allies. The US government views corporate profits as evil. The US government wants US citizens to live worse lives because our standard of living isn’t fair to the third-world, wilderness animals, or The Earth.
    It seems clear that both governments have acted to achieve their particular goals.

  13. David Manners
    July 31, 2009 16:46

    I think Communist Dictatorship is the right description, Daniel, because Communism is China’s officially declared political system and, in a political system where voters have no choice of party, then Dictatorship accurately describes the status of the leadership.

  14. Daniel Watt
    July 31, 2009 16:35

    Fundamentally, it’s a communist political system, but with a capatalist economy. This unique combination is what makes it work over other failed communist regimes. It is more efficient than our current western systems. Just look at how much political bickering and argument goes on (in the U.S. in particular) before anything gets done – economic stimulus, automotive bailout, healthcare reform – the Chinese make a decision and go with it.
    Whether you call it a communist dictatorship or a single party democracy (they do vote, after all), it is working for them and there are lessons in there that the west can learn. Lets stop complaining and calling them dictators and instead focus on strengthening our own economy.

  15. David Manners
    July 31, 2009 11:20

    Yes Ozzy, you’re right about China not turning out to be so brilliant for Western companies, but for Chinese companies, judging by the 8% GDP increase every year for a decade or so, it’s a good environment so long as you are quids in with the Communist dictators who run the place and if you don’t give much of a stuff for your employees.

  16. Ozzy Fulcanelli
    July 31, 2009 09:10

    Interesting that Beyer said that.
    In the last 25 years we have seen quite some communist countries go out of business. Due to too much success? I doubt it.
    China has shown good growth rates in the last 20 years but let’s not forget that they came from very far behind. So yes, good growth percentages per year but still low GDP per capita. And, no, I do not expect China to overtake us any time soon.
    My perception is that too many companies rushed into China, expecting a quick and easy fix for their problems, only to be surprised by the challenges of doing business there. Look at Intel closing down their Shanghai factory so soon.
    I agree with Beyer that western governments could have done much better to keep businesses in the US or Europe.
    Maybe fallen asleep after the commies collapsed in the early 90′s?

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