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I thought China’s cheap goods are the reason why US inflation rate remains sane over the years and enabled US to keep doing QE
by whoevercares 5y ago
I thought China’s cheap goods are the reason why US inflation rate remains sane over the years and enabled US to keep doing QE
- Retric 5y agoInflation is about more than just the total amount of money. Roughly if you double the worlds population, goods, and money then the same amount of money buys the same amount of goods. However, imports only represent a fraction of overall spending. It’s really increasing productivity that’s been keeping inflation low.
- whoevercares 5y ago> increasing productivity thanks for the highly productive Chinese people
- Retric 5y agoPer capita GDP says Chinese people aren’t that productive. China is an economic powerhouse because it’s got 1,400 million people. US ranks 15th by per capita GDP(PPP), Hong Kong would be 19th, and China 100th. China is still recovering from some horrific mismanagement by the CCP, but it’s got a long way to go.
- bell-cot 5y agoYou mean all those Chinese goods that are (at best) sitting & rotting in a huge fleet of container ships, parked off the U.S. West coast, waiting to be unloaded "eventually"?
- whoevercares 5y agoAre you serious? I mean the entire supply chain
- eunos 5y agoYeah until Chinese wage went relatively high + trade war started + US stubbornly refused to remove tariffs.