From Knowledge@Wharton – “A lot of people think that China is really only growing at 3% or 4% right now instead of the official 7% that came out in the last quarter. Something else that’s a little disturbing about China is that in the earlier years, China would grow because of … tremendous growth in productivity. Now they seem to have to build bridges and dams and all the rest. They want to stimulate consumer [spending], but the only way you’re going to stimulate the consumer is with productivity [gains]. They’re trying to get the consumer to buy more, and he and she is not doing that, so they’re sort of doing a last-resort type of stimulus. All these things are adding to this idea that China — which is either the biggest economy in the world or the second to the United States, we’re just about co-equal — is faltering, and that obviously is going to effect world outlook.”
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