4 ms·
China's high household savings rate is largely due to the smashing of the iron rice bowl and the increase in income uncertainty. It's a vastly inefficient form
by crdoconnor 11y ago
China's high household savings rate is largely due to the smashing of the iron rice bowl and the increase in income uncertainty. It's a vastly inefficient form of self-insurance driven by the lack of welfare.
Worse, this enormous savings surplus is largely being recycled into enormous infrastructure construction projects which will never show any ROI and apartments which nobody will ever live in.
All that construction does provide a lot of opportunity for graft, though.
- timtas 11y agoOh, there's no doubt that China's central planners are malivesting on an enormous scale. Good thing for us they still save enough to fund America's borrowing.
- LoSboccacc 11y agohonestly better to have apartment available to sustain the growth that a speculative market that makes having a roof a privilege like in the western countries, where most houses are actually owned by banks.