Wow... what a great article. China has engaged in four macro strategies all of which would seem at some point come to roost.
1) Currency Manipulation: To keep the perception of low-cost manufacturing.... however, the result would seem to be to rob the Chinese consumer of buying power.
2) Real Estate Loan Growth: well documented
3) Picking Winners/Losers in industrial policy: leading to large capital misallocations
4) Wolf diplomacy: making foreign markets wary of Chinese dependence and building a large cost in defense.
I am curious if there has been any serious economic work in modeling these topics in academia ?
Is this analogous to the 'enshitification' that Doctorow talks about? You start out with something that works and spreads opportunity/knowledge, but end up in a cage that serves only a few people well?
Very interesting analysis. Couldn't help but thinking, in parts of it, that you were talking about the U.S.
Wow... what a great article. China has engaged in four macro strategies all of which would seem at some point come to roost.
1) Currency Manipulation: To keep the perception of low-cost manufacturing.... however, the result would seem to be to rob the Chinese consumer of buying power.
2) Real Estate Loan Growth: well documented
3) Picking Winners/Losers in industrial policy: leading to large capital misallocations
4) Wolf diplomacy: making foreign markets wary of Chinese dependence and building a large cost in defense.
I am curious if there has been any serious economic work in modeling these topics in academia ?
Is this analogous to the 'enshitification' that Doctorow talks about? You start out with something that works and spreads opportunity/knowledge, but end up in a cage that serves only a few people well?
Supply creates its own demand…..but maybe not job satisfaction.