Chinese Economics Thread
- Thread starter Norfolk
- Start date
I agree more money for the real estate sector in China is just throwing good money after bad. I have posted about this before. But handing out cash coupons is a bad idea. Its nothing more than welfare. Just look at the effect of cash payment on the US economy they now have the highest inflation rates in decades. And the national debt has exploded past 32 trillion dollars. Giving people free money is the worst thing that you can do. Because it allows people to consume without producing creating inflation and the money spend on these cash coupon scheme's are unproductive debt that will weight down on the economy in the future. Its just short term gain for long term pain. Taiwan is also giving cash coupons and that has not helped their economy.This guy agrees with my advice of giving out cash coupons for spending.
After a long period of debt accumulation businesses and people are now rebuilding their balance sheet and paying off their debts. So both of them are pulling back on spending. Its called a balance sheet recession also known as the end of a business cycle. China need to sit this slower growth period out and allow the economy to rebalance itself. Its short term pain for long term gain.
FriedRiceNSpice
Captain
I never knew the UK was such a major auto producer!
China should build social housing to push house prices down, and continue to move the tax base in cities from taxing on purchase of a house to yearly taxation so that municipalities have a more stable income source.
China is already doing this in a limited fashion with experiences using the digital yuan.
China needs to re-allocate manpower from exports to producing goods and services at home. The question is which ones and how.
Not for long I think. To a degree it has to do with them being a right handed drive market. This was also helped by them being a member of the EU. Now they no longer are in the EU the UK's auto industry will shrink further. The UK is long past its prime as an auto producer, ever since Thatcher came in and wrecked the industry.
But none are majority British owned.
Jaguar and Land Rover are owned by Tatar motor.
Austin Martin is jointly owned by Canadian, Mercedes and Geely.
MG is owned by SAIC.
Mini Cooper is owned by BMW.
Lotus is majority owned by Geely with a minority Malaysian group.
Vauxhall, Bedford and Opel are owned by a French group.
Bentley is owned by Volkswagen.
Morgan is owned by an Italian investment group.
Caterham is owned by Malaysians.
Rest of British cars exported are foreign brands built in UK.