China is not on track to catch up with the wealthy West. The Chinese state's commitment to highly interventionist mercantilist policies is leading to debt, malinvestment, and stagnation.
The high cost of living in California — fueled by government regulations and taxes on the middle class — means the state now has some of the worst poverty and homelessness of any state.
The theory goes like this: capitalism combines with consumerism and advertising to make us sad, lonely, and forever chasing after material goods. So we consume endlessly and the Machiavellian capitalists reap the rewards. It's not a great theory.
Competition for wealth and social status was hardly created by the capitalist system. People have always competed for these things. Thanks to capitalism, though, this competition is now less violent, and true poverty is easier to avoid.
