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China has had plenty of those. But their levers are different. They actively overspend on infrastructure projects to stimulate the economy whenever there was a
by NTDF9 7y ago
China has had plenty of those. But their levers are different. They actively overspend on infrastructure projects to stimulate the economy whenever there was a downturn.
In the past, that worked really well, spending to hand money to the poor who improved their standards of living. Will this work in the future? Nobody knows.
- AFascistWorld 7y agoOne can say that as now the second largest economy, China didn't cause financial crisis in the 40 years of opening up, outside crises didn't trigger significant slowdown, part of the immunity is that China just has so many easy ways to simply write it off.
- seanmcdirmid 7y agoWhy stop at 40 years? By that definition, China hasn’t had a financial crisis for the last 70 years, at least.
- Tyrek 7y agoIt's a pretty hot take to suggest that counter-cyclical spending isn't a very strong response to recessions - this is classical economics in a nutshell. Just because the US is too politically paralyzed to spend at the same level doesn't mean that it's an ineffectual tool.