Democratic nations like the United States rarely politicize their economic statistics — although ask me again if Donald Trump returns to office — but authoritarian regimes often do.
President Xi Jinping is starting to look like a poor economic manager, whose propensity for arbitrary interventions — which is something autocrats tend to do — has stifled private initiative.
Well, international economists are fond of citing Dornbusch’s Law: “The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” What happened in China’s case was that the government was able to mask the problem of inadequate consumer spending for a number of years by promoting a gigantic real estate bubble.
To outside observers, what China must do seems straightforward: end financial repression and allow more of the economy’s income to flow through to households, and strengthen the social safety net so that consumers don’t feel the need to hoard cash.
And when it comes to strengthening the safety net, the leader of this supposedly communist regime sounds a bit like the governor of Mississippi, denouncing “welfarism” that creates “lazy people.”
Will it try to prop up its economy with an export surge that will run headlong into Western efforts to promote green technologies?
The original article contains 877 words, the summary contains 213 words. Saved 76%. I’m a bot and I’m open source!
I’m actually going to go a step further and say regulated, non-crony capitalism would also be better than what they have. The party has no incentive to bring either in as they are the cronies, though.
This is the best summary I could come up with:
Democratic nations like the United States rarely politicize their economic statistics — although ask me again if Donald Trump returns to office — but authoritarian regimes often do.
President Xi Jinping is starting to look like a poor economic manager, whose propensity for arbitrary interventions — which is something autocrats tend to do — has stifled private initiative.
Well, international economists are fond of citing Dornbusch’s Law: “The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” What happened in China’s case was that the government was able to mask the problem of inadequate consumer spending for a number of years by promoting a gigantic real estate bubble.
To outside observers, what China must do seems straightforward: end financial repression and allow more of the economy’s income to flow through to households, and strengthen the social safety net so that consumers don’t feel the need to hoard cash.
And when it comes to strengthening the safety net, the leader of this supposedly communist regime sounds a bit like the governor of Mississippi, denouncing “welfarism” that creates “lazy people.”
Will it try to prop up its economy with an export surge that will run headlong into Western efforts to promote green technologies?
The original article contains 877 words, the summary contains 213 words. Saved 76%. I’m a bot and I’m open source!
So basically they are saying China should become capitalist and it will fix their problems 🤣
Um, no, that’s not at all what it’s saying. It is saying China should ease off the cronie capitalism and try a little socialism for ordinary people.
When they suggest “freeing the market” they mean neoliberal capitalism. There aint a universe where opening markets means “more socialism”.
Also crony capitalism isnt a thing, its just regular capitalism.
I’m actually going to go a step further and say regulated, non-crony capitalism would also be better than what they have. The party has no incentive to bring either in as they are the cronies, though.