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.
So he is admitting that China is only able to export because US (for example) is importing and giving them dollars. Neoliberals are acting like China is destroying the world with its export but the problem is that US gave away all its industrial capacity and started importing from China. The only way to build it back up is with Government spending. And with how bad all the infrastructure bills have been its unlikely.
Yea but high speed rail being built on deficit spending is bad because profit
And the idea that Chinese Government isn't shifting to domestic spending is wrong, that's their plan, shift to domestic consumption with increased spending. Export led growth is unreliable.
Also the same thing can be said to a much greater extent about Germany. Their export growth model relies on suppressing domestic wages, benefits and creating unemployment. But of course, since they are "western", no mention of it from Krugman.
You mean communism? Obama? GENDER? Fuck off with that taxation government spending mumble jumble. I want tax cuts NOW. Also be sure to buy American to support freedom!!