National Obligation in China - Consumer Spending
>> August 28, 2009
China has initiated a program of obligatory nationalistic spending. Its domestic reform is in full swing after the export sector was under severe pressure following the (logical) inability of the US consumer to immediately accept the restart of the Chinese-American symbiotic relation a.k.a. the US debt-dream now spurred by the Obama leadership.
China however is wide awake when it comes to GDP growth targets and loss of public face when not fulfilling them. Logically the Chinese growth engine must be spurred one way or the other and commi-capitalism has found a way: State-run consumer spending.
As a result of a declining foreign tourist spending binge, the Chinese consumers are now letting off spending themselves and have increased their savings for a better day as jobs are in decline. Chinese leadership now encourages its people to spend more with different incentives from state-run hotels and national parks in the area's that are hitten hardest by the economic decline. Chinese consumers are given vouchers and other free tickets to visit tourist places within China in an effort to stimulate spending.
At least China can say that they are experienced in running a planned economy.
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