Reading Michael Pettis: "Common Prosperity" vs. "Dual Circulation" [Ep. 133, Macropiece Theater]
Eurodollar University
The Limits of Common Prosperity
The goal of the common prosperity campaign it seems is to rebalance income levels through transfers from those who are rich to those who are not. But rather than doing so by raising wages which would undermine expert competitiveness in a country where export sector comprises disproportionately large share of economy Beijing will focus partly on fiscal transfers and mainly on what it calls tertiary distribution. This approach could help strengthen domestic consumption without undermining export competitiveness but there are at least three reasons to be cautious first donations by foundation set up by Chinese businesses and wealthy individuals accounted for roughly 0.2% of GDP in 2017 while charitable giving in the United States amounted to 2.3%. Most of this giving in China is not used to boost
