What is a harmonious society, anyway?

What is a harmonious society, anyway?

1. What is a “harmonious society”

Below is an excerpt from Wikipedia – Harmonious Society

The Harmonious Society is a socioeconomic concept in China that is recognized as a response to the increasing alleged social injustice and inequality emerging in mainland Chinese society as a result of unchecked economic growth, which has led to social conflict. The governing philosophy has therefore shifted around economic growth to overall societal balance and harmony.[1] Along with a moderately prosperous society, it was set to be one of the national goals for the ruling Chinese Communist Party (CCP).

The concept of social harmony dates back to ancient China, to the time of Confucius. As a result, the philosophy has also been characterized as a form of New Confucianism. In modern times, it developed into a key feature of CCP general secretary Hu Jintao‘s signature ideology of the Scientific Outlook on Development developed in the mid-2000s, being re-introduced by the Hu–Wen Administration during the 10th National People’s Congress.

Economics and Hoarding

Since the Great Financial Crisis of 2008, there have been headlines such as Europe banks hoarding ECB cash, threatening credit crunch (2012), Banks across Europe are considering taking a drastic step to avoid negative rates (2016), and Bank of America Clients Hoard Cash at Highest Level in Two Decades (2022).  This first became a problem in the US during the Dot.com Crash (2001) and the GFC – and then shifted to Europe. After all this time, we in America might have a more dispassionate view of the issue.  But the third reference above shows the problem of hoarding money persists.

 Where is economic theory about hoarding? Hoarding is nowhere to be seen in mainstream economics. Herein we discuss why.


Image credit: Pixabay, Public Domain.