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incomes are very high, as is the prove to be an importanttransfer rates. But, more significantly,
incase,thenit is fairlyclearthateither payment.
creasingovertimerates in some inin income dustrieswill lead to more automahoardingor personal consumption Whetherthe transfers
expenditures,with low multipliers, occur throughthe vehicle of budg- tion if the final demand for the
is taking place. Foreign travel by et deficits,differential
decreasesin productsis sufficient
to justifyhigher
the wealthy, purchases of goods taxes,subsidiesor other fiscaltech- costs.Or, more likely,high (differfromabroad, investmentsin what niques is mainlya questionof fiscal ential) overtimepenalties will reVeblencalled conspicuousconsump- technologyand does not affectthe duce productionand employment
in
tion on the whole tend to have a central economic argument. The manyindustries.At worst,the high
lower multiplierthan investmentssuggestedovertimewage penaltiesto labor costsmightpush up prices.
in industrye.g., the passivecapital induceemployersto hiremorework- The properpolicy,it seemsto me,
of ski lodges,summerhomes,yachts ers are, in my view,a short-sightedis to create favorableconditionsto
and expensiveapartmenthouses is and improperpolicy.One can doubt operate in, rather than dictating
less economicallyeffective
than the the equity of differential
overtime marketoperationsby fiat.
active capital of mines, mills, factories.Therefore,a modesttransfer
of incomefromthe verywealthyto
theless wealthyis not likelyto have Red China's
population and ideology
an adverseeffecton nationalinvestmentand income.On the contrary,
it maywell have a highlybeneficial
effect.
By bringingmanylow incomepeoof theeconple into themainstream
omy, the demand for housing,
schools,consumergoods of all sorts,
moremodestluxurygoods, medical
care and a varietyof serviceswill
increase.This increasewill not only
to be used
cause existinginvestment
more fully,but an accelerationef- by ALAN R. PLOTNICK
fectwill occur-that is, the increase
in consumerdemand may lead to
ofvarioussortsand Caughtbetweenthe harshrealityof a vastpopulation
new investments
at a faster
increasing
and Karl Marxs dogmathat"overpopulation*
thus reactivatethe private invest- ratethanproductivity
can exist
mentmarket.
have sevonlyunderan exploitative
capitalist
society,the ChineseCommunists
will, eral timesreversedtheirpositionon population
planning.At one time,during
Manyof theincometransfers
leadersevenproclaimed
of course,go throughgovernment- theGreatLeap Forward,the Communist
thata spiralwas a greateconomicasset.In morerecentyearsof famineand
will provide ingpopulation
thatis, thegovernment
industrial
and farmproduction,
theChineseleadershavereversed
services through its own budget. stagnant
themto lowerthenationalbirthrate
will be thesame selves.Now theyare trying
but are encountering
However,the effect
resistance
What stubborn
as any otherincometransfer..
tradition-bound
masses.Alan R. Plotfromtheuneducated,
nick
well
Assistant
if
transfers
are
is
Political
the
at
the
Professor
of
Economy
University
of Alberta.
mayhappen
plannedis that,as a resultof increasing the incomestatusof the lower
most discussions concerning government
have invariablyvacillatquarterof society,certainsocial side
will occurwhichwill be highChina's population, we are re- ed betweeneitheractingtoo late or
effects
ly beneficial.For example,the prob- mindedof the Malthusiandilemma not at all withrespectto thecrucial
lem of the social integrationof the of too many people relativeto the population problem which affects
Negro and the Puerto Rican will existingfood supply. Nobody dis- China's economic progress.In still
tend to be more readily solved in agreeswiththissocial and economic other ways, the tortuousroute of
the marketplaceif the income of truism.What is perhapsless clearly China's demographicideologyshows
such people is improved.
understoodis how the Chinese re- much less than completededication
One of themajorattackson segre- gime, over the past 15 years,has to Marxist-Leninist
doctrinewithin
gationis to improvetheeducational modifiedits populationviewsin re- the Chinese Politburo.
qualityof the depressedfractionof sponseto changinginternaleconomBy focusingon China'spopulation
the society,which will make them ic conditions.
problemswe can gain valuable inmore sociallyacceptable,as well as
The shiftingcurrentsof Chinese sightinto the country'srecentdiffieligibleforfuturehighearningsdue populationideologyreveala strange culties in raising the level of ecoto theirimprovedproductivity.
This and inconsistentpattern that par- nomic welfare. Also revealed are
and certainblind spots in the thinking
might imply subsidizingeducation allels China's past uncertainties
fora periodof timeforlow income achievementsin domesticeconomic of the ChinesePolitburoas it wresa stagnant,tradipeople,but the subsidyitselfwould planning.The leadersof theChinese tles to transform
MALTHUS,
MARX AND MAO
Challenge
June, 1964
tionalsocietyinto a dynamicindus- The Sovietsapparentlybelieve that It is now growingat about two per
trializedpowerplayinga dominant theycan adopt any population hy- cent annually, which means that
rolein worldaffairs.
pothesistheywishwithoutbreaking everyyearthereare about 14 million
To understandthe relationship the umbilicalcord that binds them or 15 million more people to feed.
In a countrywhereonly 11 per cent
betweenChina'spopulationideology to theirideologicalancestors.
and her philosophyof economic
Furthermore,Soviet economists of the land is arable, the constant
growth,we must review the back- apparently disagree among them- threatof famine,malnutritionand
groundof currentChinese thinking selves regardingthe desirabilityof death hangs heavilyover the counon the population question. Com- a populationcontrolprogram.They tryside,where 90 per cent of the
munist demographicideology was know that a rapid birthratecould people live.
Before the leaders of China ingreatlyinfluencedby Karl Marx's
Malthus.
Thomas
augurated their firstnational ecopolemicagainst
nomicplan, theycentralizedthe adWe mayrecall thatthe Malthusiministrationof governmentand
an theoryof populationwas actually
fastened their political control
a critique of the hypothesisthat
mankindwas makingreal progress.
throughoutthe nation. Concerning
the
in
was
that
population problem, Chinese
By emphasizing
poverty
leaders were uncertain.Sometimes
large measurethe resultof human
theyargued in supportof Marxian
fertility,Malthus created an antithesisbetweenthe social ills that
orthodoxy,and then they would
contradictthemselvesby accepting
originatein man's biological drives
Westernneo-Malthusianism.
No efand thosethat resultfromsociety's
fort
was
until
to
wealth
to
sufficient
made,
1962,
perinability produce
suade the people to reduce the size
and distributeit fairly.
of theirfamilies.The completestate
On the otherhand, Marx refused
of indecisionregardingthiskeyissue
to viewthe overpopulationproblem
not only reflecteda lack of underin termsof the Malthusianconcept
of man vs. resources.Marx thought
standing of the economic foundationsof Chinesepoliticalpower,but
that overpopulation,insofar as it
also
discloseda peculiar unwillinga
was
existed,
peculiarlycapitalist
ness to recognizethe presenceof a
labormarketproblemin whichthere
Malthus
werealwaysmoremen seekingjobs
dangerouseconomicundertowwithlabor
thantherewereemployment
create
shortagesby in theeconomy.
oppor- actually
The Communistslaunched their
tunities.From this "surpluslabor" removingwomen from the labor
first
Five-YearPlan in 1953. The
when
Marx's
force.
This
be
desirable
exceptional
might
premise, plus
was
to transform
China froman
acrofull
in
the
semantic
automation
takes
in
effect
to
goal
ability engage
batics, there emergeda "scientific SovietUnion,but fortheimmediate agriculturalinto an industrialnapopulationtheory"thathas become futurelabor is still an asset rather tion. Prioritieswere given to detheaccepteddoctrinein thepresent- than a liability.On the otherhand, veloping heavy industry with a
a slowerbirthratemightcause the minimal emphasis on agricultural
day Communistworld.
The Chinese Communists,who loss of certain planned economies expansion. Measured against prothe plan was
seized power in theirown country of scale as well as endangerthe de- ductionachievements,
severaldecades afterthe Bolsheviks velopmentof the easternregionsof a materialsuccess:steeloutputgrew
from 1.35 million to 5.35 million
establishedtheirrule in Russia, ex- theSovietUnion.
metrictonsbetween1952 and 1957;
hibited a strong devotion to the
Marxistpopulationphilosophyand
pig iron increasedfrom1.9 to 5.94
naivelydenied the applicabilityof When the Chinese Communists million tons; coal productionfrom
socioeconomicdoctrine seizedpowerin 1949,theywerecon- 63.5 to 130 million tons; electric
19th-century
to a world which, in their case, frontedby a demographicsituation powerfrom7.26 to 19.3millionkiloseemscloserto the one depictedby that hardlyseemed favorableto a watt-hours.
Malthus. Had the Chinese leaders long-run economic program. The
"regressed"and accepted classical country'spopulation was not only
population theoryas a guide to impoverishedbut also steeped in In terms of human welfare,howpopulation planning, they might archaicwaysof economicexistence; ever,the plan was a failure.Accordhave had a firmer
intellectualfoun- to Chinese planners the vast pool ing to Prof.AlexanderEcksteinof
of Michigan,the per
dation on which to build policies. of humanitymusthave appeared as the University
The Soviet Union, on the other an amorphous,undevelopedand, on capita supply of food did not inhand,has had moretimeto examine the whole, unproductiveresource. creaseat all in the yearsfrom1953
Marxistpopulationtheory,
Allowingfora netdecreaseduring to 1957. Moreover,the population
adapting
it to meet her own circumstances.the lean yearsof 1959-62,expertsin grewfroman estimatedtotalof 602
As a result,Marxist demographic Hong Kong estimatethat China's million in 1953 to more than 656
dogma has exerted much less in- population is presentlysomewhere millionin 1957.
A reviewof the firstChineseFivefluenceon officialSoviet ideology. between715 millionand 720 million.
10
Challenge
June, 1964
June, 1964
11
sharplywiththe 1950s.Duringthose cropsgrownon small plotsset aside capital were available,whichis the
yearsnationalproblemswereexam- forprivateuse. The communeshave main handicap,China's arable land
ined froman almostparanoieview- been brokenup into much smaller could be doubled. Anotherchoice,
point; feudallandlordsand bureau- units, called "production teams," fraughtwith danger,would be for
to shift
its efforts
craticcapitalistswere held responsi- each consistingof 20 to 30 families. China to intensify
Birthcontroland agriculturalre- part of its population into Southble for the nation's woes. Foreign
visitorsweretoldthata "population organizationare a double-barreled eastAsia.
PresidentKennedyregardedChiproblem"did not exist and that it answerto the Malthusianproblem
was only an inventionof "the for- that has harrassedMao Tse-tung na as America'sgreatestforeignpoleign capitaliststryingto shift the since he came to power. But the icy problem in the decade of the
blame for their oppressionof the synthesisof a completepopulation 1960s.His fearswerebased not only
Chinese people onto the backs of controlprogramwill also dependon on the likelihood that Communist
measuresthatraiseproductivity
and China would soon acquire nuclear
the people themselves."
withThese and similar fantasieswill morale in Chinese industry.Earlier weapons,but also on pressures
no longerbe so easilydispensedto mistakeshave taught the Chinese in China formorespace as itspopufarm and city workerswho have leadership to give top priorityto lation approached the one billion
beforethe end of
lived throughtheharshyearsof two agriculturerather than industry, mark,a certainty
economicplans.The Chi- but the emphasiswill probablybe this century.Though China is a
ineffectual
nese people are also becomingin- changedonce again whenthecrucial serious threat to the countriesof
creasinglyaware that the govern- equilibriumbetweenman and avail- Southeast Asia, it is perhaps an
even greatermenaceto the U.S.S.R.
ment'sown economicplanningcan able food is re-established.
We must considerhow valuable
lead to disasterquite independently A successfulprogramof population controlin China would offer Cambodia or Thailand appear to
of foreigncapitalistdevils.
thelong-runpossibility
of a substan- the Chinese in comparison with
tial decline in the level of human southernSiberiaor OuterMongolia.
Ihe present demographiccontrol fertility.
Ironicallyenough,thistend- These latterareas wereonce partof
programin Red China consistsof ency contradictsMalthus, who be- theManchuempire,and thecurrent
remains Chinese regimemaintainsthat it is
fourmajor parts: (1) familyplan- lieved that human fertility
that
recommendation
the rightfulheir to all territories
ning; (2)
underManchu
whichwereformerly
sterilizationof husband or wife be
rule.The currentSino-Soviet
undertakenwherelarge familiesaldispute
providesthe Chinesewithan added
readyexist; (3) tolerationof aborof marexcuse to press their claim to the
tion;and (4) postponement
not
who
have
lands lostbyChina in pastcenturies.
students
riage among
The failureto resolvetheinternal
yetcompletedtheireducation.
The birth controlcampaignhas
populationproblemencouragesChiin foreignaffairs.
nese aggressiveness
apparentlybeen widelyacceptedin
Yet we are told by the Chinesethat
the cities,but therehas been little
domesticconditionshave now improgressin the rural areas, where
A recentissue
90 per cent of China's people live.
provedconsiderably.
of the PekingReview,forinstance,
Reportsindicatethat the traditionassertedthat "since 1961 the ecobound peasants,as well as the unare opnomic situationhas improvedyear
educatedindustrialworkers,
and
use
the
to
late
marriages
by year,and thisyear (1963) there
posed
of birthcontrolmeasures.Since the
has been a generalturnforthe better.The situationis changingfaster
by and largestillclingsto
peasantry
than anyoneexpected."
the old notionthatearlymarriages
These reportsmust be accepted
and large numbersof childrenare
Mao
withcaution,in viewof China'spast
the best securityagainstold age, it
is unlikelythatChina's leaderswill moireor less constant.If Chinese practiceof dressingup failuresas
solve their immediate population familycontrolefforts
are successful, statisticalsuccesses.In any case, the
could
furnish
a
entirely
through
growthproblems
they
demographic China of today is still less indusAsian trializedthan Russia was in 1917,
propagandaprogramsaimed at lim- modelforotheroverpopulated
size.
countries
to
emulate
as
iting family
theytryto and theChineseeconomyhas probaSlowingdown populationgrowth attaineconomicmaturity.
bly not fullyrecoveredfromthe reverses of past years. China may
throughbirthcontrolprovidesonly
half the answerto China's problem.
appear to be a terriblemenace to
While limitingpopulation growth, I here are other alternativesopen her underdevelopedAsiatic neighleadersare endeavor- to the Chineseas theyreach foran bors. But in relationto the Soviet
theCommunist
ing to increasefood productionby optimumpopulation. Besides birth Union and the UnitedStates,China
the remainssomethingof a "paper tigiving farmersgreater incentives. controland farmreorganization,
Once again the peasant is being Chinesecould extendthe cultivated ger." It is about the futurestrength
allowed to sell,on the open market, surfacein theircountry.If enough of China thatwe mustbe wary.
12
Challenge
June, 1964