• TrudeauCastroson [he/him]
    ·
    1 year ago

    In an economy as tightly controlled as China, how much does deflation even matter?

    Also I wonder how everywhere else having inflation will interact with this. Is China just getting affected because the rest of the world can't afford basic necessities anymore? The article kinda touches on reduced demand from countries with inflation abroad causing this, but also doesn't really explain anything other than going "lower number is uh bad"

    • HobbitFoot @thelemmy.club
      ·
      1 year ago

      China has built out enough infrastructure where it really needs consumer demand to take over as a major economic engine.

      • RuthlessCriticism [comrade/them]
        ·
        edit-2
        1 year ago

        Nah, that is liberalism. https://thenextrecession.wordpress.com/2023/08/02/china-consumption-or-investment/