economics
Imported tag from Readwise
economics
Warnings came from sector rotations out of late expansion stocks into early contraction stocks.
John J. Murphy • Intermarket Analysis
Driving knowledge work in the ’30s was the fact that more young people stayed in school because they had nothing else to do. High school graduation surged during the Depression to levels not seen again until the 1960s.
Morgan Housel • Same as Ever: Timeless Lessons on Risk, Opportunity and Living a Good Life
.fact .economics
‘I realised why I had failed for years to sell him,’ said Mr Wesson. ‘I had urged him to buy what I thought he ought to have. Then I changed my approach completely. I urged him to give me his ideas. This made him feel that he was creating the designs. And he was. I didn’t have to sell him. He bought.’
Dale Carnegie • How to Win Friends and Influence People
According to a March 2024 action plan, the Ministry of Commerce, together with other Chinese government agencies, has offered subsidies to consumers who trade in old automobiles, home appliances, and fixtures for new models. On paper, the plan loosely resembles the “cash for clunkers” program that Washington introduced during the 2008 recession to
... See moreZongyuan Zoe Liu • China’s Real Economic Crisis
As the party sees it, consumption is an individualistic distraction that threatens to divert resources away from China’s core economic strength: its industrial base. According to party orthodoxy, China’s economic advantage derives from its low consumption and high savings rates, which generate capital that the state-controlled banking system can
... See moreZongyuan Zoe Liu • China’s Real Economic Crisis
Q: How does this system emphasise political stability
A: The system emphasizes political stability by ensuring that the business elite remains dependent on state-controlled financing, which binds their interests to those of the Communist Party. This control prevents dissent and individualistic tendencies that could threaten the party’s authority, thereby maintaining a cohesive alignment between economic activity and political objectives.
A: The Chinese government prioritizes industrial investment over consumption because it views consumption as a distraction that diverts resources from its industrial base, which is essential for political stability and economic control.
Q: Why does the Chinese government prioritize industrial investment over consumption in its economic policy?
(Run the prompt again for the answer.)
The party believes that spending too much by individuals is a distraction that can take away resources from what makes China strong: its factories and industries. They think China's strength comes from people saving a lot of money instead of spending it, which helps banks lend money to businesses. This system also keeps the government in control of the economy. Since the factories rely on cheap loans to keep going, the wealthy business people have to follow what the party wants. In Western countries, money often controls politics, but in China, politics controls money.
and unless there is an equivalent drop in investment (if anything, investment is likely to rise to take advantage of higher real estate prices)
Michael Pettis • The Great Rebalancing
Long Historical Cycles: Where are we in a 20- or 30-year inflation cycle? Are we transitioning from a disinflationary era into an inflationary one?
• Structural Indicators: Have demographic trends changed substantially? Is globalization giving way to regionalization? Are commodity investment patterns and energy transitions setting the stage for
... See morekaustubhs • Inflationary_Cycles
Capital cycle analysis is really about how competitive advantage changes over time, viewed from an investor’s perspective.
Edward Chancellor • Capital Returns
.economics .implementation
Fredonian demand for foreign capital will reduce investment and credit-fueled consumption abroad and the higher return on capital will otherwise increase foreign savings.