According to a Chinese writer, today's China has been suffering from nearly the same demographic challenges as Japan's in the past decades, with no more quickly growing population to keep supporting the country's otherwise still-relatively-high GDP growth rates in recent years. - In Japan in the past decades, the country's "main" economic problem had been manifested microeconomically as the well-known economic phenomenon of prolonged balance sheet (repairing) recession afflicting many of her highly-indebted households and enterprises, but this (microeconomic) problem had actually been a result of Japan's "genuinely main" macroeconomic problem during that period of time ------- the shrinking-population-induced collapse of her countrywide production function (or her production possibility frontier). - Similarly, the much-less-quickly expanding (or even slightly collapsing) countrywide production function of today's China has ended up much slowing the yearly GDP growth rates of the country especially during the post-Covid years, and has also caused most of her other aggravating economic problems (like housing, debt, unemployment, disinflation, and lack-of-innovation problems) we all witness today. --- Only the (real human and non-human) capital is the real wealth of the Chinese (and any other) economy, since by double (or multiple) entry accounting, for every finanical liability of any kind there is a contemporaneous financial asset balancing it, and so, all the current much-hyped and quickly-accumulating financial liabilities (or debts of all kinds) incurred by some households and enterprises in today's China, together with their corresponding financial assets owned by some other Chinese (and foreign) households and enterprises, all sum up to zero at any time for any excuse in any way. - The above said, a collapsing production function of a country will still lead to the economic problems of surplus (or excess) capital and the accompanying shortage of demand for credit, which also means an excess of supply of credit. And so, one of the main economic problems now in China isn't the lack of (bank and other) credit, it's actually been an excess of productive capacity, or a lack of aggregate demand, requiring the correct recipe of expansionary fiscal policies, rather than expansionary monetary policies (alone), to effectively cure the economic diseases. --- Though being criticised by some Chinese people on the internet, the recent suggestion of a well-known Chinese economist of the government's fiscal-policy subsidization of young Chinese couple's giving birth to more babies should be a good one. China should also learn from Japan's past government mistake of giving more fiscal-poliocy financial aid in the past decades to her country's old people rather than to her young people. - In a country which is facing more and more demographic challenges, the most scarce asset in the society is well-educated and well-trained young labor force. It's well said that the central bank of Japan can print enough new money to stimulate the stagnating economy, but she can't print enough money-spending new young people with high marginal propensity to spend (and invest). ---
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According to a Chinese writer, today's China has been suffering from nearly the same demographic challenges as Japan's in the past decades, with no more quickly growing population to keep supporting the country's otherwise still-relatively-high GDP growth rates in recent years.
-
In Japan in the past decades, the country's "main" economic problem had been manifested microeconomically as the well-known economic phenomenon of prolonged balance sheet (repairing) recession afflicting many of her highly-indebted households and enterprises, but this (microeconomic) problem had actually been a result of Japan's "genuinely main" macroeconomic problem during that period of time ------- the shrinking-population-induced collapse of her countrywide production function (or her production possibility frontier).
-
Similarly, the much-less-quickly expanding (or even slightly collapsing) countrywide production function of today's China has ended up much slowing the yearly GDP growth rates of the country especially during the post-Covid years, and has also caused most of her other aggravating economic problems (like housing, debt, unemployment, disinflation, and lack-of-innovation problems) we all witness today.
---
Only the (real human and non-human) capital is the real wealth of the Chinese (and any other) economy, since by double (or multiple) entry accounting, for every finanical liability of any kind there is a contemporaneous financial asset balancing it, and so, all the current much-hyped and quickly-accumulating financial liabilities (or debts of all kinds) incurred by some households and enterprises in today's China, together with their corresponding financial assets owned by some other Chinese (and foreign) households and enterprises, all sum up to zero at any time for any excuse in any way.
-
The above said, a collapsing production function of a country will still lead to the economic problems of surplus (or excess) capital and the accompanying shortage of demand for credit, which also means an excess of supply of credit.
And so, one of the main economic problems now in China isn't the lack of (bank and other) credit, it's actually been an excess of productive capacity, or a lack of aggregate demand, requiring the correct recipe of expansionary fiscal policies, rather than expansionary monetary policies (alone), to effectively cure the economic diseases.
---
Though being criticised by some Chinese people on the internet, the recent suggestion of a well-known Chinese economist of the government's fiscal-policy subsidization of young Chinese couple's giving birth to more babies should be a good one.
China should also learn from Japan's past government mistake of giving more fiscal-poliocy financial aid in the past decades to her country's old people rather than to her young people.
-
In a country which is facing more and more demographic challenges, the most scarce asset in the society is well-educated and well-trained young labor force.
It's well said that the central bank of Japan can print enough new money to stimulate the stagnating economy, but she can't print enough money-spending new young people with high marginal propensity to spend (and invest).
---
Yoon seems to have enjoyed ,"The Whirlwind", a little too much.
I really appreciate your efforts! I have a quick question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?
Great job reading😁🙄
Hi everyone, good morning.
Karma has spoken👍
Great work 👍