Trade surpluses are created by policies that subsidize manufacturing at the expense of household income, forcing households to pay for manufacturing competitiveness; as a result, manufacturing grows faster than GDP and consumption grows more slowly.
causalpending
Speaker
Michael PettisEvidence Quote
“trade surpluses are typically created by policies that are aimed at subsidizing manufacturing at the expense of household income”
Source
Michael Pettis: China’s Consumption Crisis Is The World’s Crisis— The Monetary Matters NetworkCreated: 8/11/2026, 7:43:21 AM
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