I read a quote today that was quite striking, in regards to an argument that the consumer focus stimulus was ill-advised (it was focused on Big ticket purchases like appliances, which will arguably pull forward demand and then leave a long period of reduced demand).
The air conditioning seller said that "the entire city is poor, and nobody can buy things when they don't have money."
You would think China would be a fertile ground for policies that could address this, but the party continues to essentially run a live experiment of how far a hyper-export driven economy can be pushed.
They do have initiative to address it (such as the perhaps ill-advised appliance purchase credits), but it's quite obviously nowhere near enough, and it's blind and we obvious from both boots-on-the-ground accounts and the dangerous flirting with things like factory gate deflation and involution.
Fade_Dance•6h ago
The air conditioning seller said that "the entire city is poor, and nobody can buy things when they don't have money."
You would think China would be a fertile ground for policies that could address this, but the party continues to essentially run a live experiment of how far a hyper-export driven economy can be pushed.
They do have initiative to address it (such as the perhaps ill-advised appliance purchase credits), but it's quite obviously nowhere near enough, and it's blind and we obvious from both boots-on-the-ground accounts and the dangerous flirting with things like factory gate deflation and involution.