American Huilin Institute
Ionocovalency can be extended to the social economy. I is the ionic function of liberalization Iz，. C is the covalent function of nationalization rc, and IC is economic efficiency, i.e. covalented liberalization:
IC = I(Iz )C(n*,rc-1) = n*( Iz /R)½ rc-1
The liberalization is an ionic function of energy. No liberalization, there would be no the social production force. However, the pursuit of liberalization cannot be unlimited, but should be subject to covalency of nationalization rc，that is, a fixed domain of socially sharing of a common value to reach a stable and viable harmoniously optimized state.
When we develop the economic efficiency IC we can raise the liberalization Iz , or but we must relatively raise its nationalization rc. Too high liberalization Iz or too low nationalization rcwill result in "non-interventionism". However, too low liberalization or when nationalization of certain reform measures (covalency) exceeds certain intensity, such as the central over-concentration of power, too to monopolize the market, making the loss of necessary competition, they tend to backfire. If the covalent of nationalization rc is too large, financing efficiency of IC will shrink.
The historical facts have strongly proved the interdependence between the ionic free economy and the covalent nationalization:
1929, U.S. President Hoover promised during his election campaign speech "make poverty disappear from this country." However, he stubbornly pursued the classical theory of free capitalism I(Iz ), then came largest in the history an economic crisis on October 24, 1929.
When Roosevelt took office in 1933 to adopted the covalency of "nationalization" C(n*,rc-1) reform line, and through the implementing of the central allocation of resources to more effectively alleviate the economic crisis. The economy improved rapidly from 1933 to 1937.
1980 Reagan administration of neoliberal cowboy financial policy I(Iz) developed into deep-rooted "non-interventionism" system. Results of the last 20 years the two swept through the global financial crisis.
Since President Obama came to power in 2009 and adopted a series of nationalization measures C(n*, rc-1), the U.S. economy began to recover from the long-term damage by the free capitalism I(,Iz ) policy. The stock market rebounded from the bottom.
30 years ago, China's "bird cage economy" and the Soviet Union's planned economy are due to not only the too large covalent nationalization C(n*,rc-1), but also the extremely small ionic production power I(Iz ) that led to the economic efficiency IC tended to be zero and the national economy was close to crash, leading to the disintegration of the Soviet Union, and the collapse of the political power of the “gang of four”.
Since then, China’ economic has gotten a surprising change. Based on the IC-model, China’s economic boom is due to the liberalization of its massive state capitalism harmonized with its enough strong nationalization.
So we would predict that China could continue developing for a long term. There are two main reasons: 1) The China's economic liberalization mainly comes from foreign capital, the liberalization of China's own state capitalism is just the beginning, especially, in the non-trade enterprise, such as, finance, transport and communications have been controlled by government, have not yet been in ionocovalency, i.e. not in nationalized liberalization. 2) China has a strong covalent function C(rc-1, n*rc-1) of nationalization to act as a guarantor, that is, China already has a maturity of nationalization mechanisms and experiences for the relative adjustment (covalency) of state capitalism liberalization and has a broad nationalized market of 5 times more than the United States to run the nationalized economic cycle wheel. Therefore, China has a huge development space. In the light of ionocovalent considerations, China catches up the U. S. economy just in the near future.
However, China faces increasingly sharp huge contradictions that the ionic capitalist economic opening does not adapted to the covalent imprisonment of politics and culture. Especially, the today’s social aftermath of the economic corruption and moral bankruptcy caused by Marxist "social Relations" will not only impede the future’s economic development, but also lead to the social unrest.
[*] Zhang, Y. Ionocovalency, J. Am. huilin. Ins. 2011, 5, 1-11
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[*] Zhang, Y. 离子共价性, J. Am. huilin. Ins. 2011, 5 (B), 1-9