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Econ160 - Essay Example

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Both of my parents work and I can say that we live a relatively comfortable life. We own our house, our cars and goes to vacation once or twice a year. My parents were also able to afford to send me in college where…
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My parents belongs to several generation of Guanxi where I am expected to inherit his position.
If I will be living in China, I better be sure with the place that I will live. It is because the Chinese government prohibits the reselling of houses as their policy response to avoid speculation in the housing industry. I will be stuck in the house that I will choose for a very long period of time so I better take my time before buying a house. Unlike in the US where the housing market is determined by market forces as enunciated by Friedman in the book Capitalism and Freedom where price and availability is determined by the law of supply and demand where I can resell my house anytime I want it subject to the same law (supply and demand), Chinese government will just not allow the resell and even pegged the price.
China may now allows private ownership of houses only with restrictions. With my present economic stature, I believe I would be able to afford a house and not in a crampy apartment or shoebox as what Hedrick Smith had described in his book The Russians. Only that my house will not form part of my estate where I can resell for profit or I will go to jail.
If I will be in China, choosing my occupation will be partly determined with how the “opportunities” present to me. Unlike in the US where choosing an occupation is determined by personal preference and applying on it base on merit, it will be different in China. The cliche its whom you know more than what you know applies. If my father belongs to a Guanxi or the network of power elites, he may recommend me to some of his associates in the network as expounded by McGregor in his book The Party and will accept whatever occupation that will be given to me. From there, my future will be secured because I will be under the patronage and care of my father’s Guanxi and I will later develop my own network. I will first learn the rope of the business until I ... Read More
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