China's economic struggles become more apparent. For a few years the idea in the west that China has "structural imbalances" that need to be corrected has become common. Structural imbalances I take to mean that the Chinese economy's growth has been driven by an ultimately unsustainable dependence on investment. The investment, in turn, is not supported by consumption high enough to employ the new productive capacity resulting from the investment.
Western observers prescribe more consumption by the Chinese workers. That would require higher pay -- a larger share of GDP going to workers and less to profits. But the rhetorical question that occurs is "why don't the same observers prescribe the same remedy for the USA"? And, why don't journalists ask that question of the pundits addressing China? Gene _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
