« The Pace of Automation in the Age of COVID | Main | My Talk at the EGROW Foundation »

02/10/2021

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

This article below shows an infographic that speaks to the difference in consumption vs saving. The biggest US imports from China include low-priced consumer goods like clothing, and cell phones, which are relatively accessible by a majority of the middle-income US population. As a result, these are often consumed in high volumes, driving overall consumption up. On the flip side, the primary products imported by China are high-priced goods like airplanes and automobiles - which are accessible by the wealthiest in China including corporations and high net-worth individuals, which makes the volume of these imports lower.

In addition, "To keep export prices low, China buys a large volume of Treasurys. It has become one of the largest lender nations to the United States, currently second only to Japan." By buying Treasuries, China helped keep U.S. interest rates low, spurring more spending.

https://www.thebalance.com/u-s-china-trade-deficit-causes-effects-and-solutions-3306277

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)