China’s “Volker moment” to destroy iron ore

Thursday, 26 August 2021

Why is China suddenly seeking to share prosperity? This chart has something to do with it:

If you want to rebalance your economy from investment-led crony capitalism and an increasingly risky export dependency to consumption then you’re going to need strong households, not the above.

The way to do it is to shift more of the share of national income to workers and away from pampered rentier profiteers.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.