China Can Rescue the World
Calla Wiemer, UCLA | November 13, 2008
China can revive the world economy by strengthening its consumption. ++ Its industrial development has been shaped by US consumer demand and “US consumption has in turn been fueled by Chinese lending that kept interest rates low.” ++ This circle is broken - the US economy is in a recession and the Chinese are failing to fill the gap. ++ China has the resources to undertake stimulus programs. ++ Social spending will have the strongest impact. ++ It will intensify public and private consumption by strengthening the social welfare system.
