The Problem With China's Consumption Share

Households retain the lowest share of GDP of any country, probably in history. If you spend more money late at night, you're going to spend less money in the day. There's only two ways to get you to consume a bigger share of GDP. One way is to encourage lots of consumer debt. And then the other way is to increase the household income share. But this is politically really tough to do. We've known this for a while. It's just politically extremely difficult to manage these transfers. And that's what they have to resolve.