RuthlessCriticism [comrade/them]

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Joined 2 years ago
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Cake day: August 2nd, 2022

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  • I don’t agree with your economics which is essentially neoclassical, but I sort of agree with your proscription. The central government of China has very low debt and should spend a bunch of money. However, I think that people who suggest this miss the problem they have which is that they can’t agree on what to spend the money on. The central committee won’t agree on policies that just give money to people directly, for a variety of reasons some good and some bad, but it won’t happen. In my view the central government could possibly agree to sending money to local governments in proportion to the number of citizens under them, which amounts to the same thing, and relieves the local government debt burdens somewhat. The fact that it hasn’t happened yet obviously implies that there isn’t sufficient agreement on that approach.

    In general though I think people underestimate the degree to which the Chinese economy is just fine and needs no intervention at all. If factories start shutting down in a disorderly manner, that is obviously the time to bring down the hammer. But I suspect that there is a good chance it won’t be necessary.