"However, even the most long-standing bearish commentators like Michael Pettis don't think a full-blown crisis in the cards, even in the unlikely event growth tumbles precipitously from its current 7.5% level. Pettis recently estimated that GDP need only grow by 3-4%, implying zero investment growth, in order for median Chinese income to continue growing robustly, ensuring social stability while the economy is weaned away from export-led growth...."
Does "social stability" depend on such growth? Can't falling incomes _also_ maintain social stability. Even in Greece the political response to Austerity has not really threatened such stability. Scattered riots and miscellaneous actions on the left are hardly that serious. Misery itself can be a bulwark of stability, generating passivity rather than serious resistance. Carrol _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
