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 Crisis— The Monetary Matters Network
Created: 8/11/2026, 7:43:21 AM

My Notes

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