In Urban China, Cash Is Rapidly Becoming Obsolete
I think this is a good illustration of the different approach in how China and America approach the consumer economics space. In America, there is a very heavy reliance on &quot;trickle down&quot;. We create a &quot;best-in-class&quot;, &quot;top-of-the-line&quot; product that only the elite and wealthy can buy into. These people then set the tone of how it will develop in the future. The first mover also tries to do everything in their power to lock you into the ecosystem. Examples of these are iPhones (and the app ecosystem), Tesla, etc.<p>In China however, they throw away that pride of creating the greatest and shiniest. Instead, they start off with an &quot;inferior&quot; product but use the scale of their population to bring down costs and they try to ensure everyone has access. The top example is smartphones. In the article itself, &quot;Even the buskers were apparently ahead of me. Enterprising musicians playing on the streets of a number of Chinese cities have put up boards with QR codes so that passers-by can simply transfer them tips directly.&quot; China starts off with a product that gives every citizen a chance to get in on, not just the wealthy, and they build up their economy from the bottom up, rung by rung.<p>The way I see it, we have democracy in politics but in products, its authoritarian because its guided by the billionaires and wealthy. In China, they have an authoritarian political system, but democratic economy space because they can actually vote with their wallets.