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 Pettis

Evidence 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 CrisisThe Monetary Matters Network
Created: 8/11/2026, 7:43:21 AM

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