reply on: China's Bizarre Stimulus: Subsidizing Gadgets to Boost Consumer Spending \ stacker news ~econ

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20 sats \ 7 replies \ @Undisciplined 3 Jan \ on: China's Bizarre Stimulus: Subsidizing Gadgets to Boost Consumer Spending econ

I have two cynical hypotheses:

Those sectors were struggling and they lobbied behind the scenes for this form of bailout.
The CCP thinks this is an inexpensive way to distract a disgruntled populace with shiny things.

22 sats \ 6 replies \ @Satosora 3 Jan

Most people in China can barely afford the house they live in. How is this going to work in their favor?

20 sats \ 5 replies \ @Undisciplined 3 Jan

I don't know all the policy details, but I don't think the over-investment in construction was driven by direct subsidies. My recollection is that it was one of the less expensive ways for local party officials to appear to be meeting certain economic growth targets.

21 sats \ 4 replies \ @Satosora 3 Jan

I think the over investment was driven by greed and misdirection. They thought it would never stop.

20 sats \ 3 replies \ @Undisciplined 3 Jan

Greed's ever present, therefor it's not a good explanatory factor. Just like gravity being the cause of plane crashes is not a satisfactory explanation.

29 sats \ 2 replies \ @Satosora 3 Jan

If the people were happy with what they had, there wouldnt be so much greed over there. They always want more. I went to school with some Chinese students, and their priorities in life are different.

20 sats \ 1 reply \ @Undisciplined 3 Jan

When those students' parents were born, China was one of the poorest places on earth and was governed by one of the most evil regimes in human history. The norms that developed out of that and allowed the recovery that's taken place since are pretty understandable.

The current generation of Chinese young adults, in my experience, are much more relatable in their motivations and behaviors.

21 sats \ 0 replies \ @Satosora 3 Jan

It could have been the generation I was in school with. All they wanted were good grades, and to get an american bf/gf. They were willing to waste a lot of money to get those things, too. Maybe the newer generation is a bit more sound. And the amount of corruption in those families, most had 2 kids. Party members, guess it pays to be part of the group that is leading.