Government announces change to assist the development of a socialist matket economy

Government announces change to assist the development of a socialist matket economy
Jun 1, 2007 10:06
APAULT Points: Join Date: Mar 11, 2006 Status: offline	On CCTV9 tonight the govt was reported to be changing laws on bankruptcy. In he future creditors will get all the money owed befo workers get what they are owed. This is supposed to enhance the move to a socialist market economy. Can someone please explain how paying out other businesses before the workers is an any sense socialist? Then a very capitalist American banker said this is a good move because it is a move towards recognising that 'there is no shame in bankruptcy'. WHAT??? A business gets credit from bank, suppliers and investors, it does not manage its affairs properly and becomes bankrupt. Then it says 'Oh sorry' you have lost your money, but we are not ashamed. I thought China was trying to create a specifically Chinese socialist spciety utilising the market economy. In this case it appears to be following the worst of the American system. Again, can someone explaon what I am not understanding in why the government has done this??

Jun 1, 2007 10:06

APAULT
Points:
Join Date: Mar 11, 2006
Status: offline

On CCTV9 tonight the govt was reported to be changing laws on bankruptcy. In he future creditors will get all the money owed befo workers get what they are owed. This is supposed to enhance the move to a socialist market economy. Can someone please explain how paying out other businesses before the workers is an any sense socialist?

Then a very capitalist American banker said this is a good move because it is a move towards recognising that 'there is no shame in bankruptcy'. WHAT??? A business gets credit from bank, suppliers and investors, it does not manage its affairs properly and becomes bankrupt. Then it says 'Oh sorry' you have lost your money, but we are not ashamed.

I thought China was trying to create a specifically Chinese socialist spciety utilising the market economy. In this case it appears to be following the worst of the American system. Again, can someone explaon what I am not understanding in why the government has done this??

Jun 3, 2007 04:54

EVENING
Points:
Join Date: Dec 5, 2006
Status: Offline

Paul, I don't think it is to follow the American system.

The new law says workers will get what they are owed after the creditors get theirs. This is to stop enterpises from delaying or not giving salaries and other welfares to their workers.

I think this is to protect the workers' benifts from the further consideration. It is in accordance with China's solicalist situaton, rather than that of America. : )

Jun 3, 2007 07:01	#2
TRAVELLERMIKE Points: Join Date: Mar 15, 2007 Status: Offline	Creditors are liable to be business with workers of their own to pay

Jun 3, 2007 09:23	#3
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	Evening, yes the workers get their money after the other creditors - but there won't be any!!! The other creditors never get 100%, so there is never any for the workers. If I was the leader of a socialist system, the workers would always come first!

Post a Reply to: Government announces change to assist the development of a socialist matket economy