Sunday, April 3, 2022

Is inequality necessary for growth?

 China seems to think so:

For most of last year, Mr. Xi trumpeted a signature program known as “common prosperity” aimed at redistributing more of China’s wealth, amid concerns that elites had benefited disproportionately from the country’s economic boom. The program underpinned many of Mr. Xi’s policy drives, including a clampdown on technology companies that were seen as exploiting their market power to boost profits.
But a year later, use of the term "common prospertity" is fading because
...the policies ... spooked business owners and slowed growth when Mr. Xi needs China’s economy to stay robust. He is preparing for political meetings expected to return him for a third term in power later this year.

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