this post was submitted on 04 Jun 2024
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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.

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[–] [email protected] 7 points 3 months ago (2 children)

I'm probably wrong but my mind immediately went to neoliberal austerity to force people to purchase services on the private market

[–] [email protected] 5 points 3 months ago

Oh and my dumbass was thinking it means rising wages so people have more money to spend