Written and Published by Han Institute, January 6, 2013

Analysis of Three Political and Economical Models of Running the State with Art

Comparative thesis and structure among ROC, PRC, and USA

First of all, we need to remind you that the ROC constitution includes mainland China because Japan surrendered unconditionally to the ROC in 1945.

How did the Nationalists defeat the advanced Japan?

KMT had a peerless sprit of sacrifice and achieved the most work with the least resources. They have served brilliantly in mainland China and Taiwan.

PRC's Prime Minister in waiting, Mr. Lee Keqiang, welcomes the distant remote doctors to the Zhongnanhai state offices, Forbidden City, as he understands he needs to control the cost of medicine, and encourages serving the most people with a fair price.

My recent trip to the east coast of Taiwan gave me insights and great appreciation for the older-generation Nationalist government's humane and strategic work. Do you know the Taiwan government, with a humane structure founded by my KMT grandfather's generation, funds a military mental hospital and gives to mental patients, the disadvantaged, 500 Yuan=$18, every month? They have good doctors and nurses and social workers, paid much less than US medical personnel, but still perform humane work. They have good communications with family members including the latest technology such as Skype. Their low-paid workers can take the patients out once a month so they have some mobility. All of this would not be possible if the services were too expensive, as they are in the U.S., where Medicare and Medicaid are out of control.

The name of the game is affordable healthcare and government with cheaper cost, but achieving the most functions, with humanity.

The Chinese Nationalist government founded Academia Sinica in order to drive industry. In the 1950's and 1960's, they gave the staff researchers 30 Yuan a month (40 Yuan=$1 at that time) from the fund for their transportation allowance.

The Nationalists supported educational research with minimum cost, in order to raise a country's competiveness in science and technology, and sprouting industry.

Why doesn't the US build up the big consolidated data centers first, and then speak, rather than boasting in advance how well you can reorganize the current systems and still do the work? Currently the government is behaving like Emperor Qin Shihuang, who after completing his tomb killed all the workers.

US businesses like GE have completed phase 1 in assisting China to start up, like nuclear power plants in Henan, now they enter a different, competitive phase.

New Momentum in PRC's Controlled China

In the Chinese Communist Party's 18th Congress it defines "movement to modernize cities" as the engine for national growth. This will entail construction of over 10,000 cities and will trigger investment of 40 trillion RMB.

Apple and GE are leaving China and Mexico to open up newer lines of production in the USA. This is a good thing, as the US will have manufacturing edges.

The PRC policy is to administer a neo-colonial economic policy system to use established rich coastal capitalists to come to the inner lands to pillage the yet-to-be-developed regions. So the Communists will have more regions to exploit, while they are chiming harmony to ask local regions to submit their land robbed from the Nationalists and given to them by Mao, now given to the newly-anointed rich Communist status tycoons at the order of the Fa Gai committee (Developing Prosper Reform Committee).

But once farm laborers relinquish their land and move to the city, will it be a utopian world with enjoyment of all promised myriads of insurance categories, and rights to attend school? With what social cost and revenues? By robbing their land, now the government can pay for their social security and health insurance?

Again, unlike the Nationalist basic 500 Yuan to keep a mental patient monthly stipend allowance, we do not have statistics to tell just yet.

Downfall of KMT government in Mainland

When they refused to pay for employees who served the country, they cut the ratio of 4:2 to 2:2 of Nationalist troops to Communist troops. They compromised with a bad strategy, and lost out to the Communists in the civil war.

In the US, the government will collapse if low-paid government tech workers start to defect for higher pay in private industry, the Government will end up paying a lot more to contract Google engineers' work.

If you fire government employees who are working under a modulated, controlled pay system, or if you continue to let debates about the debt ceiling disrupt the morale and normal government operations by constantly threatening government shutdowns, you will unravel systems and agencies that have been built up over many generations, you may not have a layer of government to count on, like the KMT.


The KMT is able to use least amount of available resources to achieve the most. Their approach has been proven to work. With eight years of hard work in the resistance war against Japan, the KMT government recovered mainland China. After recovering Taiwan back from Japan in 1945, the KMT built it up. I have not found a historical parallel.

Taiwan has a very proud national health insurance system, this would not be possible without the infrastructure built up by the Nationalists over the years, such as education, and political structures like the legislative house.

However, when faced with a very bleak situation with insufficient food, supplies, and basic amenities, and attacks and infiltration from all sides, China failed to Communist beckoning. So be careful with cuts to government resources, you have to allow a reasonable level.

Taiwan is competetive because it can do work cheap, with quality medical services using the KMT-founded structures that originated with minimum survival expenditures. A person told me an ambulance ride in the US costs $3000, in Taiwan this would only cost $100. We need to maintain the basic humane functions of the Nationalist government, while keeping an eye out for corrupt schemes such as salvaging public land to serve private land developers' interests.

The US trouble is private industry cost is way over the norm for a modern economy to function. The only structure still standing is the government, which has evolved and proven to work over 236 years. We don't want the US economy to bubble.

A KMT norm is to run the state humanely and cheaply. The biggest challenge for the US government is to run things more efficiently and cheaply while still being humane. Mandating consolidation of all computer centers will not save costs, and will defeat the free-thinking work ethic. Government is not for profit, it is for the benefit of the people. There is a commitment to excel in the public sector for public benefit with the least resources, thus, running the government using a for-profit thesis will be self-defeating, and this would be diverging from the founding fathers' values of creating the US.

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