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There is no doubt that free(er) markets in China have not only helped the Chinese people to a better life, but through the magic of free(ish) trade, have made t
by brc 11y ago
There is no doubt that free(er) markets in China have not only helped the Chinese people to a better life, but through the magic of free(ish) trade, have made the lives of people throughout the world better.
The one thing China does better than places like the US is in the savings rate. Everyone could learn from that.
- aianus 11y ago'Savings' is not a worthwhile goal in and of itself. If all you do with your savings is stuff it under the mattress or lend it to banks who in turn lend it to homebuyers to perpetuate the greatest property bubble in history... you're going to have a bad time.
- brc 11y agoSavings are a necessary pre-requisite for investment. On balance it is better to have savings than debt. Creating bubbles in certain asset classes is usually the fault of differential tax or regulation treatment for that class. It can be avoided by not creating special classes. The story of savings being stuffed into mattresses is usually followed by some type of incorrect Keynesian thinking. It's so rare that it is not a problem. A 'general glut' as it used to be called has nothing to do with hoarding savings.