AI Is reviving Chinese Marxist economics
ATHENS — As China embraced capitalism, its leading universities adopted mainstream Western textbooks to mold their students’ thinking about the economy. “Most of my colleagues pay only lip service to Marxism,” an economics professor in one of China’s top economics departments confessed to me. “Only a tiny minority take Marx seriously.” That was two years ago. Today, the artificial intelligence…
Athens — As China transitioned to a capitalist economy, its top universities incorporated mainstream Western economic theories into their curricula. A professor from one of China's leading economics departments expressed skepticism, stating that only a small fraction of his colleagues truly adhere to Marxist principles. This sentiment prevailed two years ago. However, the recent AI revolution is breathing new life into Chinese Marxist economics.
Chinese Marxists have been wary of the potential pitfalls that could arise from the country's shift towards capitalism. They foresee a "rent trap," a phenomenon observed in North Atlantic economies, where asset-price inflation, rapid economic slowdown, stagnation, deindustrialization, and social discord become rampant. When competition in productive sectors drives down profit rates, investors are lured towards rent-yielding properties, which offer the highest risk-weighted returns.
The more wealth accumulates in the form of rents, the higher the asset prices soar, and the faster the wealth shifts from industry to the rentier sector. This relentless cycle threatens to hollow out the industrial base and transform once-prosperous industrial powerhouses.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- AI Is reviving Chinese Marxist economics koreatimes.co.kr
