China has invested 40% of GDP into capital formation while keeping consumption at only ~50% of GDP, compared to the US at 70% consumption, creating a severely imbalanced growth model that has hit diminishing returns because they've suppressed the private sector and innovation has collapsed.
factualpending
Speaker
Kenneth RogoffEvidence Quote
“investments been 40% of GDP. Consumption, they're different measures, but you know 50% of GDP maybe uh uh we're 70% of GDP by comparison”
Source
Kenneth Rogoff on Monetary Moves, Fiscal Gambits, and Classical Chess | Conversations with Tyler— Mercatus CenterCreated: 8/11/2026, 7:10:38 AM
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