Chinese Economics Thread

[CMP]

I'm completely against cash handouts. Instead, there should be rebates for electronics, household goods, consumables, etc.

 

[TK3600]

I'm completely against cash handouts. Instead, there should be rebates for electronics, household goods, consumables, etc.

Which is already happening in some industry yes. The e bike example for one.

 

[FriedRiceNSpice]

Chinese government obviously want to boost consumption but it is harder to do cash stimulus in China compared to some countries like US. The Chinese has way higher saving ratio compared to the American. A lot of stimulus will just sit in banks or in real estate rather than go into the economy.

While I do believe that at some point in the future, UBC will be necessary in China, I don't think we are close to that point yet. Rather than cash handouts, I think a better idea would be to distribute special government sponsored coupons for purchasing certain goods (subsidized by the government): in effect a negative consumption tax. The coupons can be tailored to support consumption of targeted categories of goods/services, and be based on income and geographic location (to generally favor lower-income citizens and citizens living in relatively underdeveloped regions).

Just tax anyone childless to pay for these subsidies. If you aren't raising your own children, then you will help raise other people's children.

Yes, but needs to be done in a gradual and careful manner to prevent causing demographics to swing too much in the other direction. Demographics should be targeted towards gradual decline in population, with target TFR of 1.6-1.8. The lessons learnt from the one-child policy should be remembered.

 

[vincent]

You guys should know the government has been handing out discount coupons for lots of products for about a year already, including automobiles.

 

[fatzergling]

I'm completely against cash handouts. Instead, there should be rebates for electronics, household goods, consumables, etc.

Experimental Labour vouchers is another way to replace cash handouts. Ensure that the toilers get their fair share of comsumption while ensuring their compensation doesn’t go towards say real estate speculation. Given the price war and razor thin margins, diverting extra products to such voucher markets would help the manufacturers as well.

 

[Dolcevita]

Which is already happening in some industry yes. The e bike example for one.

And smartphone also.