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Streeck's Argument Analysis

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Finally, Streeck argues that economic stagnation, a long-term period of lackluster economic growth, will lead to the fall of capitalism. Growth will continue to decline, while risk goes up, and ultimately, “the struggle for survival will become more intense” (Streeck 58). This stagnation is not confined solely to purely capitalistic countries however, wrinkling Streeck’s argument. China, for example, which practices state capitalism, still has a very interventionist economy with significant central planning. In the Heritage Foundation’s 2017 Index of Economic Freedom, China was ranked 111th in the world, fitting in the “mostly unfree” cohort (2017). According to the American Enterprise Institute, or AEI, “the most likely economic scenario over the course of the next decade [for China] is not high growth or an economic collapse, but stagnation” (Blumenthal). …show more content…

The AEI argues that “more state action—such as credit provision or infrastructure spending—cannot reverse it. A return to a healthy economic trajectory will require resuming pro-market reform” (Blumenthal). It is not capitalism that leads to stagnation, but rather poor economic policy. This line of thinking is further endorsed by Fred Hu, a former Greater China chairman for Goldman Sachs, who has previously advised the Chinese government on economic policy. Hu argues that without reform away from central planning, China will face “loss of growth momentum, [and] a slow descent into economic stagnation” (Hamlin). Stagnation, while an important issue, is not a sign of self-destruction from capitalism. China is evidence that stagnation can, and will occur in a variety of economic systems, thus rebutting Streeck’s

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