With all of this deflation, how is China supposed to send more balloons?
Guess which political economic form can handle price deflation gracefully (hint, it’s not capitalism)
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”
China has built out enough infrastructure where it really needs consumer demand to take over as a major economic engine.
Nah, that is liberalism. https://thenextrecession.wordpress.com/2023/08/02/china-consumption-or-investment/
“Won’t someone think of the retailers?!”
These would be problems if China had a liberal economic model. Fortunately they have whole process workers democracy, and these things aren’t really problems at all.
