Hoping to avoid the middle income trap, China is taking the less typical socialist route through their “common prosperity” policies.
In many ways, a country can become good at football (soccer) and nurture a World Cup winner but it also could get snagged by the “middle income trap.”
This week’s economic news summary includes the diner’s dilemma and marginal analysis, property rights in outer space, the Phillip’s Curve and unemployment.
An economic development plan that is characterized by a top down command structure, China’s thirteenth five-year plan contrasts with the market’s bottom up.
Our economic news summary includes interest rates and the Fed, inequality and developing nations, space travel innovation and consumer spending changes.
While some high middle income economies have slowed down and then accelerated again, using World Bank criteria, China’s economic growth is tough to predict.