I have made this protest before to others - why just post a link without comment? When a person makes a posting, surely there has to be some particular point he is making, relevant to the discussion. Any link provided should be as supporting evidence in support of the point, only rarely will a link, by itself, make a point. This whole thread is about China in crisis. I made a comment that at least hundreds of millions of people in China have been brought out of poverty. VHS gave a response, which I counldn't understand. Next there is a graph of wealth distribution (apparently in the United States of America - though it is not labelled). Dan, how does the rather long link you have posted add to the discussion?
I have some concern about the poor who are "quite" poor, but I care more for the poor who are "absolutely" poor. If, to get people out of absolute poverty, we have to operate a capitalist free-market global economy, then I am in favour of that. Mind you I am not convinced that it is really necessary, I just observe that, in actuality, the current economic paradigm, while creating some fantastically rich people, is also bringing millions out of abysmal poverty.this is mostly due to the poor being quite poor ( who would have believed it ) and a lot of the rich being massively rich
Many "middle income countries", such as Thailand, Malaysia, Brazil, and Mexico, seem to have entered the so-called "middle income trap".What is in trouble?
If you're saying China's economy is slowing down and it could see the first real recession in like... oh 30 years? then yes, that might happen (or rather, is already happening.) for a variety of reasons.
It is true that the nature of the Chinese state has more volatile potential in a downturn event as well (heck the last downturn really a major factor that lead to Tiananmen.), for a variety of other complicated reasons (including, you know, the west would really like to see it implode if possible.)
That doesn't necessarily mean that it's on a clear path of implosion either, there's a variety of possible outcome. They could go something similar to a Japanese route of relatively stable stagnation, or an outcome is that an actual downturn would force them to make pretty radical reforms (which was basically what happened post Soviet collapse.)
But certainly, this current period in China would probably set the future of most of our life time one way or another. One would have to note the obvious issue that if China really does pull off another 90s sort of reform and it works, then it would almost certainly far and clear surpass the US economically, and that would open a whole other can of worm.
We should also note that generally this slowdown in China is in fact correlated with a general world slow down as well and one would be careful if the west itself is sleep walking into it's own recession that might end up worse than last time given the completely ridiculous debt level of central banks.