Feudalism, Mercantilism, Capitalism… Pendulism?

3 min read

Just now

Could China’s swinging economy be a model for the future?

What if the next economic system isn’t capitalism or socialism but a deliberate back-and-forth approach that balances growth and fairness?

Photo by Dulana Kodithuwakku on Unsplash

I’ve been thinking about inequality. History is full of economic systems feudalism, mercantilism, capitalism, socialism, yet all struggle with the same problem: wealth concentrates at the top.

China might be showing a different path. In “The New China Playbook” economist Keyu Jin describes how China’s government balances rapid growth with social stability through a deliberate “push-and-pull” approach. Sometimes the state steps back to let entrepreneurs flourish. Other times, it steps in to curb excess and restore fairness.

This inspired me to coin a term: Pendulism an economic system where policy swings between freedom and control to prevent extremes.

So what is Pendulism?

Pendulism is simple in concept:

Encourage growth:

Let businesses innovate, hire,and expand.

Correct excesses:

Intervene when inequality or monopolies rise too high.

It’s a dynamic approach, not a fixed ideology. Think of it as a pendulum that constantly swings to maintain balance.

“China acts early, sometimes suddenly, to prevent instability,” writes Branko Milanović, noting that the country can allow inequality to rise while still enforcing strong corrections.

Examples from China

Tech crackdown:

Alibaba, Tencent, and Didi faced fines, restructuring, and canceled IPOs to reduce monopolistic influence.

Education reform:

Private tutoring, which fueled inequality, was sharply restricted.

Common Prosperity campaign:

Billionaires were encouraged to give back to society, focus on social goals, and reduce ostentatious displays of wealth.

These swings are controversial, but they illustrate the pendulum in action balancing growth and equity.

Why Pendulism Could Work.

Limits extreme inequality – Prevents wealth from spiraling out of control.

Promotes stability – Early intervention avoids social crises.

Encourages flexibility – Combines the best of markets and state oversight.

Balances innovation and fairness – Entrepreneurs thrive without leaving society behind.

“Markets alone cannot prevent harmful levels of inequality,” says Nobel laureate Joseph Stiglitz. Pendulism is one way to address that challenge.

Potential Risk

Creates uncertainty – Sudden policy shifts may scare investors.

Risk of overreach – Too much control could stifle innovation.

Hard to replicate elsewhere – Democracies may struggle with fast, decisive action.

Perception risk – Critics may label it “authoritarian economics,” even if the goal is fairness.

The Big Question

Could pendulism be the economic system the world needs?

China’s approach challenges the binary idea that economies must be fully free or fully controlled. It suggests that growth and fairness don’t have to be opposing goals – that a carefully timed swing between the two could keep both innovation and social stability alive.

Whether or not other nations can implement a pendulum-like system, the idea sparks an important question for the 21st century:

Can we build economies that grow, innovate, and still keep society equitable?