Monday, January 13, 2014

China's Great Inflation Helped Bring Communists to Power

Richard Ebeling emails:
Dear Bob,

I have a new article on the news and commentary website, "EpicTimes," on "China's Great Inflation Helped Bring Communists to Power."

Inflation is one of the most destructive and destabilizing economic policies that any government can follow. It destroys wealth, undermines savings, disrupts the capacity for rational business decision-making, and threatens social chaos.

An example of this was the Great Chinese Inflation of the 1930s and 1940s, during which the Nationalist government of China under Chiang Kai-Shek created a hyperinflation of paper money to fund its war against Japan and then against Mao Zedong's communist forces.

The inflation ended up undermining those sections of Chinese society most likely to oppose communism by financially ruining large segments of China's urban and rural communities.

It therefore opened the door for Mao to claim that he would bring "order" and "stability" to China after years of war and civil war. Instead, it succeeded in ushering in decades of communist tyranny that historians estimate cost the lives of at least 80 million innocent people in the name of building the "bright socialist future."

1 comment:

  1. What brought the communists to power in China was not inflation but the communists in the U.S. government who flipped from Chaing Kai Chek to Mao Tse Dung with both military and financial support. support. Under Roosevelt, the Cabinet, including Alger Hiss actively undermined the freedom movement in China and the death of millions followed shortly after that. Gee, ain't communism wonderful?. Looks like we're going back to it again. Thanks, WASHDC.