Reading Michael Pettis: "Common Prosperity" vs. "Dual Circulation" [Ep. 133, Macropiece Theater]
Eurodollar University
The Costs of Rebalancing Chinese Income Distribution
Beijing may be seeking to resolve Western forms of income distortion. costs for rebalancing Chinese income distribution the common prosperity campaign risks undermining the dynamism of the Chinese economy. Beijing's low consumption rate isn't primarily caused by an unequal distribution of income among households it is mainly caused by the country's very high government share of GDP which is recycled into investment rather than used as in other countries with highGovernment shares of GDP to support demand side social programs to benefit households chapter four an incoherent alternative that's the problem with trying to address Western style income inequality in China where income inequality is a less significant contributor to the country's major income distortions.
