A recent article in the NY Times with excerpts below, talks about the continued deepening of China’s economic slowdown. When calculated in China’s own currency for a true local effect, the situation is worse than expected even a few short weeks ago. There is recession in the USA, recession in Japan, cancelled orders and lack of re-orders hitting the Chinese businesses dedicated to export markets.
The Chinese government’s plan is to stimulate the local economy and encourage its people to lower their savings rate. But with the lack of a health care plan or retirement programs, people seem to be saving more, not less. What is the best way for China to head off a recession? Should they establish a rudimentary health care plan for their citizens? Or is the money better spent in other areas? Continue reading »
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