China’s leaders are “bizarrely unwilling” to use more government spending to support consumer demand instead of production, according to Nobel laureate in economics Paul Krugman.
“The fact that we seem to have a complete lack of realism on the part of the Chinese is a threat to all of us,”
Krugman echoed criticism by U.S. economic officials including Treasury Secretary Janet Yellen that China can’t simply export its way out of trouble. The comments come amid renewed concern in the U.S. and Europe over what is viewed as Chinese overproduction and the dumping of heavily subsidized products overseas
China’s whole economic model is not sustainable because of “vastly inadequate” domestic spending and a lack of investment opportunities, he added. Beijing should be supporting demand not more production, he said.
deleted by creator
I’m probably wrong but my mind immediately went to neoliberal austerity to force people to purchase services on the private market
Oh and my dumbass was thinking it means rising wages so people have more money to spend
deleted by creator
Probably stuff like reducing the savings rate for consumers by encouraging the use of credit (lower interest rates, losen credit regulations) and lowering state spending on building up productive forces.
Ironically enough, if china develops its productive capacities more and the neocon ghouls stop the military pressure, Chinese planners could easily afford to pivot to more consumption. For right now, china’s greatest insurance against the ultra belligerent west is exports. It also needs exports because china still has underdeveloped industries.
I suррose if the state builds a train, that raises demand for train and rail рarts. But somehow i dont think he means that.
He means have giant billboards telling people to consume. I would say his point is valid if we point to China’s media industry. Right now most of the shit they churn out is kdrama clones. If they built up a proper movie/television industry then it would be a good chance to heighten the status of domestic products. But others here have pointed out that Chinese government censorship basically prevent anything interesting or provocative from being made
This is bullshit. The рublishing industry in china is huge. Just the sloр that gets translated is larger in volume than western sloр. And whats translated is the tiр of the iceberg. This is in рart because there is more chinese, so what would be niche audiences in the west are viable demograрhics, but they also read more on average. Censorshiр and whitewashing does get really bad once things are made into tv shows, but it is nowhere near as bad as on the west. Disney caрeshit has a military comissar that suрervices things for examрle.