In communist China, parent-led 'matchmaking corners' in public parks have emerged to combat low marriage rates. With many buyers and sellers, no barriers to entry, and zero transaction costs, these markets ironically serve as a real-world example of a perfectly efficient market, a core capitalist theory.
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The current surrogacy market is inefficient, with agencies acting as siloed gatekeepers. The opportunity is to create a centralized marketplace—like a dating app—that matches intended parents with surrogates based on complex preferences. This solves the discovery problem and creates a more efficient, transparent system than the current fragmented model.
The concept of a vast 'mating marketplace' driven by immediate value signals is a recent phenomenon. Evolutionarily, humans formed bonds based on long-term compatibility within small, familiar tribes, suggesting that today's dating apps create an unnatural and potentially detrimental dynamic.
Women's rising socioeconomic status has led to "hyperandry," where men marry "up" economically. This is now the norm for the bottom 40% of male earners and the top 20% of female earners, creating a new social landscape with unresolved cultural tensions and mismatched preferences.
The rise of a precarious gig workforce of over 200 million people directly contradicts the Communist Party's founding promise of a "dictatorship of the proletariat." This growing underclass, living with minimal security and rights, represents a societal shift towards a capitalist-style structure that the party was originally formed to overthrow, creating a deep ideological crisis.
Deng Xiaoping’s reforms, which ignited China’s growth, were based on adopting American free-market principles like private enterprise and foreign capital. China’s success stemmed from decentralizing its economy, the very system the U.S. is now tempted to abandon for a more centralized model.
China's economic structure, which funnels state-backed capital into sectors like EVs, inherently creates overinvestment and excess capacity. This distorted cost of capital leads to hyper-competitive industries, making it difficult for even successful companies to generate predictable, growing returns for shareholders.
Marriage is no longer a universal institution but a strong indicator of economic status. Three-quarters of men in the top income quintile will marry, compared to only one-quarter in the lowest quintile, making stable partnership a modern Veblen good.
Despite emotional rhetoric, human behavior is fundamentally driven by incentives. Even the most ardent socialists will act as capitalists when presented with direct personal gain, revealing that incentive-based economics is a core part of human nature.
In a clear signal of its pro-natalist policy, the Chinese government is ending a 33-year tax exemption on contraceptives while simultaneously making matchmaking services tax-free. This carrot-and-stick approach aims to socially engineer a higher birth rate to combat its demographic crisis.
Contrary to the Western perception of a monolithic state-run system, China fosters intense competition among its provinces. Provincial leaders are incentivized to outperform each other, leading to massive, parallel innovation in industries like EVs and solar, creating a brutally efficient ecosystem.
