China's Xi Jinping asked 'What’s so bad about deflation?' amid economic slowdown, report says
"Don’t people like it when things are cheaper?" Chinese President Xi Jinping reportedly asked his advisers.
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While consumers can benefit from falling prices, persistent deflation can also lead to a downward spiral for spending and investment.
This is not a worry for China because they have maintained an absolutely insane rate of investment and growth for decades now.
According to this data, while investment as a percentage of GDP has fallen off during Xi's term, it still remains well above historical standards and near the top by world standards. Of all the major economies on earth, China is the only one with investment as a percentage of GDP above 40%. Even economies many times smaller and less developed like India still have a lower investment rate than the Chinese.
Furthermore, if you look at the household expenditure per capita, the post covid times still have a much higher level of household consumption than 2019. Not only that, but investment spending is mutually exclusive with consumer spending. Complaining both that China has insufficient investment and consumption is interesting to say the least ...
The State Council Information Office, which is charged with fielding questions about China’s leaders, didn’t respond to a request for comment and referred the Journal‘s questions to other agencies that didn’t reply to its queries.
Lol
While U.S. consumers have been frustrated with years of elevated inflation, the economy has also been robust, unemployment remains low, and the rate of price growth has slowed substantially since hitting a high in 2022.
If the American economy is doing so good, how did Trump manage a clean sweep?
