I am really worried that the Chinese leadership might buy into this nonsense and try to reduce the savings rate. That is the exact opposite of what China needs. As the productive forces develop, developing them further takes even more effort as you have to take on even more challenging projects while also maintaining the productive forces already developed. It is precisely because the liberal economies stopped accumulating that they have degenerated.
I doubt it, China can see what’s happening with western economies right now just like everyone else, and it doesn’t take a genius to realize that western advice isn’t worth the paper it’s written on. Furthermore, having savings is obviously important when the global economy is headed for turbulent times, without savings there’s no ability to amortize economic impact of a downturn. So, I think there’s zero chance that China would start cutting their savings rate nw.
I am really worried that the Chinese leadership might buy into this nonsense and try to reduce the savings rate. That is the exact opposite of what China needs. As the productive forces develop, developing them further takes even more effort as you have to take on even more challenging projects while also maintaining the productive forces already developed. It is precisely because the liberal economies stopped accumulating that they have degenerated.
I doubt it, China can see what’s happening with western economies right now just like everyone else, and it doesn’t take a genius to realize that western advice isn’t worth the paper it’s written on. Furthermore, having savings is obviously important when the global economy is headed for turbulent times, without savings there’s no ability to amortize economic impact of a downturn. So, I think there’s zero chance that China would start cutting their savings rate nw.