Flaws in the Western (Capitalist) System
1. The Fundamental Flaw of the Capitalist System Is That It Cannot Handle the Profound Contradictions in Social Development
The foundation of the capitalist system is the protection of capital. That is the basic characteristic of the capitalist system. Thus, when designing their system and value ideology, capitalist countries stress the “free market,” multiple parties taking turns ruling the country, the supremacy of personal values, and so on. This system was important and positive in advancing the forces of production and social development from feudalistic to modern times. However, the fundamental problem of capitalism is the over-protection of capital’s interests, private interests, and individual interests, even at the cost of the public’s interest, overall interests, and long-term interests. Because capital is greedy and not restricted, the private ownership of the means of production does not suit socialized mass production. It thus causes recessions in the capitalist world. Marx’s theory on capitalism’s basic contradiction (the contradiction between the socialization of production and private ownership) in his book Das Kapital still holds true. The 2008 financial crisis that started in the U.S. and expanded to the whole world just proves this point.
2. The Inability to Balance Social Interests Is Another Major Flaw in the Western System
Because of the private ownership of capital and capital’s pursuit of maximum profits, there are severely diversified interests in the Western capitalist countries. The most distinctive characteristic is the existence of different interest groups and the conflicts among personal interests, group interests, and party interests. The political structure and the value placed on protecting private interests make it hard to get people to agree on major social, political, or economic policies. The two parties in the U.S. fight over the debt ceiling, which costs the country and the people dearly. The government’s decision-making process struggles under multiple constraints and is therefore inefficient. The conflict between the two parties that represent different interest groups will, for sure, tear society apart politically.
3. The System Used by Countries in the West Makes Their Policies Short-Term and Unstable
Under the two-party or multi-party political system, every major decision is a battle. The seemingly “democratic” multi-party election is actually a process of selecting policy to “get ballots” by pleasing certain voters. The politicians will put into place whatever policies please their voters and benefit their party in the election. The vacillating, incoherent, short-lived, and unstable policies create a lot of “friction.” Every change of policy harms society and the economy.
The Basic Characteristics of the Socialist System with Chinese Characteristics
1. The goal of the socialist system with Chinese characteristics is mutual prosperity, which is the social consensus and which promises a fundamental guarantee and continued momentum for national development
The socialist system with Chinese characteristics is based on the idea that “development is for the people.” Its ultimate goal is mutual prosperity. The main characteristic of this system is its focus on the public interest and protecting the rights and wishes of the public, while not serving any particular interest group. Fundamentally, this characteristic enables the socialist system to unify the social consensus and unite society’s members, thus providing advantages over the capitalist system. Also, the socialist system with Chinese characteristics protects not only the public interest, but also reasonable personal interests. It can offer the unity of group interests and personal interests, as well as current interests and long-term interests.
2. The Socialist System with Chinese Characteristics Offers Unparalleled Performance in Social Mobilization and Resource Integration
The socialist system with Chinese characteristics stresses both democracy and centralization. It can consolidate all the country’s forces to meet major goals and bring about great social integration. In terms of economic and social development, the Party (the Chinese Communist Party, or CCP) and government can always remain the guide and organizer of social mobilization. The organizational principle of the socialist system is democratic centralism. Its inherent mechanism and mode of operation enable it to form strong, unified societal determination and organized force to fully utilize each and every economic, political, and social resource; create unified actions; and respond to all social development conflicts speedily and effectively.
3. The Socialist System with Chinese Characteristics Provides Reliability and Stability, Offering a Viable, Steady, and Non-chaotic Institutional Guarantee for Long-Term Stable Development
After several dozen years of practice, the socialist system with Chinese characteristics clearly excludes the “Five Not-to-haves,” which are that China will not have multi-party rule, will not have multiple ideologies, will not have “three powers” and a bicameral system, will not have a federal system, and will not have privatization. We have established guidelines for every aspect of national and social development and formed an interrelated and interconnected complete system. This political system is critical to China, which has a population of 1.3 billion. It is the viable, steady, and non-chaotic institutional guarantee for the successful development of China.
 Qiushi Journal, “The Inherent and Historical Reasons for China to Have Its Current Social System,” September 5, 2011.