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> Investments in development and infrastructure are a good mechanism for long-term economic growth That's true up to a point where the infrastructure is facili
by joefranklinsrs 8y ago
> Investments in development and infrastructure are a good mechanism for long-term economic growth
That's true up to a point where the infrastructure is facilitating economic movements and transactions. China has already gone past that point to where they are building infrastructure for the sake of building infrastructure, not considering whether those rails and buildings will produce enough income to support maintenance in the next 5-10 years. There is such a thing as diminishing rate of returns (otherwise every economy would just keep building infrastructures forever) Currently, for every yuan Chinese government directly spends, it now only gets 1 yuan of return back, and it is declining.
As for the trade war, I think it is pretty evident who is winning, I won't go too much details into it; you can google every data around the aftermath of the tariffs.