U.S. President Joe Biden on Thursday called China a "ticking time bomb" because of its economic challenges and said the country was in trouble because of weak growth.
I love how some of the opening lines talks about interviewing a single Chinese person failing to run a business
One entrepreneur interviewed by The Wall Street Journal said that one of his businesses, a distributor for LED screens based in Shenzhen, is suffering from widening losses as overseas orders dry up, leading him to slash prices to compete for domestic clients. Having laid off more than 50 out of 120 staff since 2022, he said he is contemplating whether to shut the business this year.
Export decrese is in line with almost every other east asian country and its very much so a “western economies go into recession and import less” problem. Groth slowing to ~5% is in line with what everyone is expected and China doesnt sweat too much about it. Its pretty solid especially since its higher quality. Deflation is only a problem if it persists for a long time and if it actualy spans in various types of commodities. If you exclude energy and housing everything else shows small inflation in China still and the real estate sector is going through tough but needed restructuring and regulation periods since last year. Deflation introduced from that part of the economy is more or less a by product of them deleveraging the sector and bursting some bubbles
tldr chinas quarterly growth has slowed and liberal economists are claiming china’s miracle is over. private sector investment has shrank 0.2% for the first time since data collection in 2005 but investment by state firms has expanded 8.1% in the same period. there’s also a current global manufacturing recession. doesnt mean “its over” or whatever tf they’re saying but interesting to note.
im not an expert in political economy, but if you read the article he goes into a lot of specific reasons why china is still in a great position in regards to the future, although it will take responsible leadership that pushes back against mainstream neoclassical economics.
Neoliberalism has been a failure for the actual population. It’s decoupled economic growth from improved quality of life. Meanwhile, social democracies in Europe are showing that other models are practical and viable.
Yeah, “countries” the size of an American suburb don’t matter. Euros are always like “but what about shitsteinburg, a country with a proud national tradition and a population of 37!” Nobody cares.
neoliberalism is a function of capitalism’s contradiction of requiring constant exponential growth. in an infinite timeline neoliberalism will sadly completely consume any semblance of “social democracy”, and you can already see even the classic european social democracies are beginning to eat away at and privatize their welfare states.
other people are also pointing out unequal exchange, which is a critical concept to factor into the equation when trying to understand where the wealth of the european social democracies come from.
What troubles?
Can you describe the troubles?
Are the troubles in the room with us?
They’re straight up gaslighting LMAO. This is an actual, recent headline from the wsj:
https://archive.is/SBNOE
Vibes based economics
Reaching levels of copium not thought possible.
every accusation is an admission or whatever
like whenever the us economy is booming because line go up, all while a few million people are housing/food unstable
Except official data doesn’t look good? They haven’t gaslit shit, they’ve been reporting slowing growth, decreasing exports, and deflation.
WSJ literally wrote an article “this is what I think China will do and that’s why China bad”
What the fuck kind of journalism is that?
Official data looks good when you compare it with other large economies.
Export decrese is in line with almost every other east asian country and its very much so a “western economies go into recession and import less” problem. Groth slowing to ~5% is in line with what everyone is expected and China doesnt sweat too much about it. Its pretty solid especially since its higher quality. Deflation is only a problem if it persists for a long time and if it actualy spans in various types of commodities. If you exclude energy and housing everything else shows small inflation in China still and the real estate sector is going through tough but needed restructuring and regulation periods since last year. Deflation introduced from that part of the economy is more or less a by product of them deleveraging the sector and bursting some bubbles
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he’s probably referring to this https://thenextrecession.wordpress.com/2023/08/02/china-consumption-or-investment/
tldr chinas quarterly growth has slowed and liberal economists are claiming china’s miracle is over. private sector investment has shrank 0.2% for the first time since data collection in 2005 but investment by state firms has expanded 8.1% in the same period. there’s also a current global manufacturing recession. doesnt mean “its over” or whatever tf they’re saying but interesting to note.
https://www.reuters.com/markets/global-economy-asias-factory-activity-shrinks-chinas-slump-global-slowdown-weigh-2023-08-01/
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im not an expert in political economy, but if you read the article he goes into a lot of specific reasons why china is still in a great position in regards to the future, although it will take responsible leadership that pushes back against mainstream neoclassical economics.
Neoliberalism has been a failure for the actual population. It’s decoupled economic growth from improved quality of life. Meanwhile, social democracies in Europe are showing that other models are practical and viable.
Which European country isn’t pursuing neoliberal economics?
Practical and viable so long as you have a massive base of exploited labour in Africa and Asia to prop you up.
GDP Annual Growth Rate in European Union averaged 1.70 percent from 1996 until 2023
https://tradingeconomics.com/european-union/gdp-annual-growth-rate
GDP Growth Rate in Euro Area averaged 0.37 percent from 1995 until 2023
Source: https://tradingeconomics.com/euro-area/gdp-growth
Social Democracies in Europe are showing that you can keep people complacent as long as the oil and the african gold don’t run out. Whoopsie.
Must be forgetting about Finland, whoopsie.
Yeah, “countries” the size of an American suburb don’t matter. Euros are always like “but what about shitsteinburg, a country with a proud national tradition and a population of 37!” Nobody cares.
neoliberalism is a function of capitalism’s contradiction of requiring constant exponential growth. in an infinite timeline neoliberalism will sadly completely consume any semblance of “social democracy”, and you can already see even the classic european social democracies are beginning to eat away at and privatize their welfare states.
other people are also pointing out unequal exchange, which is a critical concept to factor into the equation when trying to understand where the wealth of the european social democracies come from.
https://www.youtube.com/watch?v=rjLmYCfKU7o this video is a really good short primer on the topic!
Here is an alternative Piped link(s): https://piped.video/watch?v=rjLmYCfKU7o
Piped is a privacy-respecting open-source alternative frontend to YouTube.
I’m open-source, check me out at GitHub.
What European country is pursuing greater social democracy? From Finland to France, the age of European social democracy seems increasingly over