It's interesting that while the first part of the analysis says that consumption is weak, at least two of the policy prescriptions (hukou reform and electricity pricing reform) have nothing to do with addressing the problem (i.e., stimulating consumption). To be sure, hukour reform and electricity pricing reform are good policies to pursue, but they are justified on other grounds (i.e., making the economy more efficient, productive) and have nothing to do with stimulating demand.
Thank you. I live in NZ so my comments may be irrelevant. Capitalism!!! in my understanding was at times in the USA driven by the "Robber Baron" who developed railways, steel manufacturing, automobiles and etc. So in many ways totally unregulated. I'm not saying I agree with this. But, it also unleashed creativity and at times amazing innovation. For example Edison, and Tesla, I guess I should add Elon Musk, even though I'm not describing him as a robber baron. So in a controlled economy how do we unleash this creative capacity? Respectful greetings. Richard Wheeler
It's interesting that while the first part of the analysis says that consumption is weak, at least two of the policy prescriptions (hukou reform and electricity pricing reform) have nothing to do with addressing the problem (i.e., stimulating consumption). To be sure, hukour reform and electricity pricing reform are good policies to pursue, but they are justified on other grounds (i.e., making the economy more efficient, productive) and have nothing to do with stimulating demand.
Just my take!
Thank you. I live in NZ so my comments may be irrelevant. Capitalism!!! in my understanding was at times in the USA driven by the "Robber Baron" who developed railways, steel manufacturing, automobiles and etc. So in many ways totally unregulated. I'm not saying I agree with this. But, it also unleashed creativity and at times amazing innovation. For example Edison, and Tesla, I guess I should add Elon Musk, even though I'm not describing him as a robber baron. So in a controlled economy how do we unleash this creative capacity? Respectful greetings. Richard Wheeler