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Thomas L. Hutcheson's avatar

"China faces the distinct prospect of following the path of countries such as Russia, South Africa and Brazil that have struggled to achieve the status of a high-income nation…"

None of whom have 44% savings rates. To fail to achieve high income status Chana needs only have a ROI <22.5/44. Xi may just do it!

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Brad DeLong's avatar

Depends how much the kind of investment the system is geared to generate runs into massively diminishing returns...

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Thomas L. Hutcheson's avatar

Ah, yes! Good point. The marginal cost average cost fallacy. That's why in a different context I'm in favor of only a few million more high income immigrants and not real open borders a la Caplan.

Still a 44% saving rate does provide a lot of cushion for the ROI to fall, right?

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Thomas L. Hutcheson's avatar

Rana Foroohar: The new rules for business in a post-neoliberal world: ‘Laissez-faire economics in the US is slowly being replaced by a more intensive policy focus from start to finish…

Ye, Henry Clay won the debate even if he lost the Presidency.

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Thomas L. Hutcheson's avatar

"since Alaric sacked Rome: the neoliberalist fantasy-religion of supply-side economics…"

At least Alaric left. :) Tax Cuts for the Rich and Deficit Acts keep reappearing, zombie like: Reagan, Dubya, Trump. Supply side economics was a good idea; we should have given it a try.

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