The Equilibrium of Parking Violation and China’s Economic Reform / Sheng Hong

罚款均衡

Abstract: Assuming that political decision makers are an economic person, we can explain China’s decision-making process of reform and opening up and now contradictory political terms. When implementing a fully planned economy, liberalizing the market will benefit everyone, including political decision makers. When wealth flows in with opening of market, increasing the proportion of political groups in national wealth will benefit the political group and not the people. But when this ratio is higher than the margin that the people can afford, the market will decline, no longer create wealth, political groups will have no wealth base to divide, and the entire social and economic system will collapse. The traits of political groups determine that it does not know where this margin is, nor does it prevent the distribution share from becoming larger, so it is possible that this situation will occur.

Published in Man and the Economy, Volume 6, Issue 1, 20190002, ISSN (Online) 2196-9647, DOI: https://doi.org/10.1515/me-2019-0002.

 

 

Author: flourishflood

Economist, Confucianist

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