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How China Escaped Shock Therapy w/ Isabella Weber

The Dig

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What Can the State Do?

The state can basically force them to stick with the prices that had proven to be profitable enough, since they were profitable before the war. But not to let them reap winfol profits by not letting them hake up prices in light of this sudden increase of demand. Now why did this make economically sense? It made sense because the expansion of production would not have been able to catch up demand in any case. In contrast to the american situation, china was on the one hand, a much more agricultural economy and a much more fragmentod economy.

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