Consumption share is not just a function of repressed wages but of heavy infrastructure investment , i.e. the denominator. And it is clear from this picture of the traffic jam saga that China needs more infrastructure investment, not less. So despite a rising standard of living, we will not see a significant increase in China's consumption share any time soon.
4 comments:
Well, I'm not pro consumption, so I'm more inclined to say Americans are consuming more than our fair share than that Chinese are consuming less than their fair share. I don't know if the traffic jam is a symptom of underconsumption. Probably the opposite. Certainly a symptom of cars-first transportation, which represents their tragic failure to learn from our worst mistakes.
Their solar-bus above the highway experiment should be interesting, although I'm not sure it will work.
What is the solar bus above the highway experiment?
If China needs more infrastructure investment, then how come there is an alleged housing bubble?
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