economics
Imported tag from Readwise
economics
When Beijing’s economic planners do talk about consumption, they tend to do so in relation to industrial aims. In its brief discussion of the subject, the current five-year plan states that consumption should be steered specifically toward goods that align with Beijing’s industrial priorities: automobiles, electronics, digital products, and smart
... See moreZongyuan Zoe Liu • China’s Real Economic Crisis
Illusion of Consumer Choice in China's E-Commerce Landscape: The e-commerce landscape in China presents consumers with a vast array of products and services, creating an impression of abundant choice. However, this perception is often misleading, as a few large companies dominate the market, shaping consumer preferences and limiting true diversity. As a result, many consumers may unknowingly participate in a system that prioritizes the interests of these dominant players over genuine choice.
Population Increase = 61.98%
GNI Per Capita Increase = 287.44%
As we can see, although India has experienced high population growth, its GNI per capita has increased at a faster rate. As a result, the quality of life in India has risen. This has given India more options for pursuing economic growth. As we discussed last week, energy = life, and
... See moreSubstack • Energy Consumption Per Capita – Part 2
In FY 2010-11 the share of consumer credit in total bank credit was only 19%. By FY2023-24 this increased to around 33%. Nearly half of this credit is unsecured or quasi-secured (secured against weak collateral), which makes it riskier. In the post-pandemic period, much of the growth in bank credit has in fact been driven by growth in consumer
... See moreIdeas For India • The Silent Reshaping of India’s Credit Landscape
At the very center of Minsky’s conception of what makes a financial structure robust or fragile is the relationship between the time pattern of cash commitments and the time pattern of expected cash flows. A firm with cash flows greater than cash commitments for every future period is said to be engaged in “hedge” finance, because the unit can meet
... See moreBoston University • Minsky’s Financial Instability Hypothesis and Modern Economics
At the heart of Minsky's ideas about strong and weak financial systems is how money coming in and money going out is timed. A company that makes more money than it needs to pay its bills in the future is considered to be managing its money safely, or “hedge” finance, because it can pay its bills without needing outside help.
“Speculative” financial systems expect to bring in more money than just what they owe in interest on loans, but they also know they will need to borrow more money to pay back the original loan when it’s due. This makes them risky because if borrowing becomes too expensive or they can't borrow at all, they could get into trouble.
“Ponzi” financial systems are even riskier because they expect to bring in less money than what they owe in interest. This means they rely on selling their investments for a profit and hope that the overall financial situation is good to cover their debts.
Honda’s executives were eager to exploit the company’s low labor costs to export motorbikes to North America,
Clayton M. Christensen • The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)
Nominal spending in the economy can originate from one of three sources: income, borrowing, or the sale of assets.
Prometheus Research • What Drives Commodities? - Prometheus Research What Drives Commodities?
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
A society in which all potential abilities are allowed to develop and function will have a survival advantage in the competition of groups. This competition becomes more severe as the destruction of distance intensifies the confrontation of states.
Will Durant • The Lessons of History
We cannot distribute more wealth than is created. We cannot in the long run pay labor as a whole more than it produces.