China's thriftiness fuels trade tensions, argues economist
By
The Economist
Underproofed. Dense without being substantial.
Summary
The article discusses how China's high savings rate contributes to trade tensions with other countries, arguing that if Chinese people were less thrifty, the country would face fewer trade wars. It references Paul Samuelson's principle of comparative advantage and notes that this principle has fallen out of fashion. The article also mentions that China's hukou (household registration) system is being relaxed, which Marx would approve of.
Key quotes
· 3 pulledAn impertinent soul once asked Paul Samuelson to name a social-scientific principle that was true but not trivial.
China would face fewer trade wars with the rest of the world if its people were less thrifty.
That principle has sadly fallen out of fashion.
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