Connect with us

Economics

The flaws that China’s chief ideologue found in America

Published

on

Listen to this story.
Enjoy more audio and podcasts on iOS or Android.

Your browser does not support the <audio> element.

In August 1988 an inquisitive young Chinese political scientist named Wang Huning came to America for a six-month visit. He admired the Gateway Arch in St Louis, Missouri, and analysed the town government of Belmont, Massachusetts, watched a football game at the Naval Academy in Annapolis, Maryland, and toured a detergent factory in Iowa City, Iowa. He was shocked by the many people begging in the streets and amazed by the softness of the waterbeds in the furniture stores. One question preoccupied him: how had such a young country raced so far ahead of his homeland, with its history of more than 2,000 years? He found a lot to respect in the dynamism of America, but he also identified contradictions that could tear it apart.

China-watchers debate the extent to which Mr Wang’s American sojourn influenced the course of China’s modernisation. What is known is that he left academia just a few years later, cutting off his torrent of published work, to help define the Communist Party’s message and maybe its policies for three successive presidents. Now Xi Jinping’s chief of ideology and propaganda, he is one of seven members of the Communist Party’s ruling body.

Americans should have learned from him, too. They still can. His book about his inquiry, “America against America”, is a time capsule from back before the cold war ended and the internet smashed a virtual world into the real one, back when a Chinese visitor might marvel that Americans could sharpen pencils with electric gizmos and order pizza over the phone. Mr Wang’s book reminds the American reader that in those days, too, Americans were anxious about big problems, from racism to homelessness.

America was an alien land to Mr Wang, and he saw important, enduring patterns in what the natives might overlook as the wallpaper of their lives. He spotted subtle controls everywhere. The police did not have to mandate identity cards because the government persuaded each citizen to volunteer to have one by calling it a driver’s licence and issuing it through a motor-vehicle agency. Big corporations such as Coca-Cola relieved the government of management over the lives of millions.

Because just about everything could be denominated in dollars, the voluntary pursuit of financial wherewithal, rather than any ideology or political system of coercion, was the ultimate source of stability. “People manage money, and at the same time they use money to manage people,” he wrote. Technological superiority had become the source of Americans’ sense of national superiority: “If you want to overwhelm the Americans, you must do one thing: surpass them in science and technology.”

Mr Wang was astonished by the public libraries. Ancient Chinese thought was unique, he argued, but failed to influence the world because of a lack of means to share it. By contrast American libraries gave everyone access to the knowledge of generations. “The purpose of building a reservoir is not to store water, but to irrigate,” he wrote. Knowledge was the source of social progress, but also social conflict. How to get the former without the latter?

Visiting Plymouth plantation and the Liberty Bell, Mr Wang admired how Americans put their thin history to work inculcating a shared political tradition. In light of recent events, his book’s most poignant passage describes the inauguration of President George H.W. Bush. Mr Wang was impressed by the pageantry, by the creation of a tradition strong enough to guarantee the transfer of authority. The important result, he wrote, “is not that the new president has power, but that the old president thus loses power”.

But Mr Wang did not think America’s unifying forces and traditions could withstand its centrifugal forces. He has been called the Chinese Tocqueville, but he disdained one of Tocqueville’s key conclusions. Mr Wang wrote that only someone such as Tocqueville, from an even more unequal society, could look at America and perceive a country achieving equality of conditions. Americans might claim to value both liberty and equality, but these values inevitably conflicted, and Americans prioritised freedom. They resented paying taxes that might yield greater equality, and the result was a destabilising divide between rich and poor.

Americans also claimed to treat the family as the basic unit of society, “but in spirit, the family is being hollowed out” because Americans actually emphasised the individual. Mr Wang was unsettled that parents put children younger than one to bed in separate rooms and encouraged their children to leave home starting at 18, to enter society “like entering a battlefield”. These children would have no time to take care of their parents as they aged, and yet because of the resistance to taxes the government would not be able to care for them, either, or for others left behind.

Who lost America?

Mr Wang was taken with Allan Bloom’s “The Closing of the American Mind”, published in 1987, which lamented a shift to cultural relativism in higher education. Mr Wang believed an abandonment of shared values was precipitating an American “spiritual crisis”. He thought the American system—“based on individualism, hedonism and democracy”—was losing out to the Japanese system “of collectivism, self-forgetfulness and authoritarianism”.

Mr Wang got that one wrong. And the Chinese model does not look so hot these days, either. But many Americans have come to share a version of his conclusion, that America’s contradictions are creating “an unstoppable undercurrent of crisis”. A record low of 28% say they are satisfied with “the way democracy is working in this country”, according to a recent Gallup poll. Sensible Americans still think that if only supporters of Donald Trump would wake up to the threat he represents to American institutions, they would reject him. The chilling reality is that that is what they like about him. Mr Wang may not have anticipated Mr Trump, but he did identify the corrosion of civic virtue that is letting the once and possibly future president tear so much to pieces.

Read more from Lexington, our columnist on American politics:
Donald Trump’s tremendous love (Feb 16th)
This is not a story about Taylor Swift and the Super Bowl (Feb 8th)
How to overcome the biggest obstacle to electric vehicles (Feb 1st)

Also: How the Lexington column got its name

Accounting

Business Transaction Recording For Financial Success

Published

on

Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

Continue Reading

Economics

A protest against America’s TikTok ban is mired in contradiction

Published

on

AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

Continue Reading

Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

Published

on

Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

Continue Reading

Trending