NPR's Book of the Day 'The Rise and Fall of the EAST' chronicles China's economic history
Mar 6, 2024
China's economic history is discussed in 'The Rise and Fall of the EAST', focusing on exams, autocracy, stability, and technology as major contributors. The declining property sector, lack of investment in people, and current political leadership raises concerns for China's future. The podcast delves into parallels with global economic trends, China's property sector influence on GDP growth, and the impact of historical examination system on society and governance.
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Personal Tale Of Housing Unaffordability
- A Shanghai-born cousin working at GM says housing is his top priority but feels he will never afford it.
- This personal example illustrates how unaffordable property is for young professionals.
Property Is The Economy's Engine
- China's property sector makes up about 30% of GDP and heavily drives growth.
- Overinvestment in infrastructure and underinvestment in people left consumers unable to buy homes and goods.
Pessimism Hurts Investment And Spending
- Deflation and falling stock prices signal weak consumer confidence and pessimistic public psychology.
- Pessimism reduces both investment and consumption, deepening economic slowdown.