May 30, 2014
China Sets America's Mental Trap
Stephen Roach, Project Syndicate
The Associated Press
As China changes its economic model, it will shift from surplus saving to saving absorption – deploying its assets to fund a social safety net and thereby temper fear-driven precautionary household saving. Conversely, America seems intent on maintaining its current course – believing that the low-saving, excess-consumption model that worked so well in the past will continue to operate smoothly in the future.
TAGGED: United States, China