cryptogopher"This year, we see more and more prominent economists [...] acknowledging that the problem is the low household income share of GDP. That’s progress. But I don’t see a discussion of the third part yet, which is the hardest part: If you want to boost household share of GDP, that implies a reduction either in the business share or the government share of GDP. This is where it gets complicated."
Michael Pettis on the US, China and Trade Wars: Capital Inflows should be taxed
Beijing-based economist Michael Pettis calls for a fundamental rethinking of global trade. Short-term capital flows should be taxed, and surplus countries like China or Germany urgently need to boost their domestic demand.