Comment by gruez
14 days ago
>They keep posting graphs of market capitalisation claiming that Europe must be failing because doesn't have speculative public trading stocks.
Say all you want about "speculative public trading stocks", but I trust public markets' pricing more than private markets[1] or the government[2].
[1] https://www.bloomberg.com/opinion/articles/2024-02-26/what-h...
[2] https://www.economist.com/finance-and-economics/2023/05/25/c...
Obsession with pricing the stock is not healthy.
According to western reports, China is at least 15 years ahead of US in Nuclear for example: https://www.reuters.com/business/energy/us-many-15-years-beh...
Or public infrastructure, or transportation, or electric cars etc.
US is stil ahead in some stuff but the list is getting smaller as the market caps getting bigger and people "richer".
>Obsession with pricing the stock is not healthy.
I'm not claiming it is, just that it's far more objective and far less fudgeable than the alternatives.
>According to western reports, China is at least 15 years ahead of US in Nuclear for example: https://www.reuters.com/business/energy/us-many-15-years-beh...
>Or public infrastructure, or transportation, or electric cars etc.
Arguably all of those is more due to government intervention than the companies themselves. Nuclear is impossible to build in the US due to overburdensome regulations, infrastructure/transportation is impossible to build due to NIMBY-friendly planning rules, electric cars are massively subsidized by the Chinese government.
The economic case for nuclear is mostly what keeps it from being built in the USA. The USA built a lot of nuclear power plants in the 70s/80s, and they didn't really pay off even with the government providing free insurance coverage. Likewise, today it is even harder to make the case for a new nuclear power plant since renewables are much cheaper on a kW basis.
Chinese regulation is neither too high nor too low. It would be impossible to build a nuclear plant if the government didn't firmly back it, otherwise there are no barriers that it can't ignore.
> it's far more objective and far less fudgeable than the alternatives.
It's not objective in the least. Stock markets are pure speculation.
Right, China achieve all this thanks to its libertarian low touch low regulation small government and only if the stock prices of the American companies go a bit higher and the government is a tad less regulated they will do even better than the Chinese.
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