Home > Uncategorized > Wen Tiejun The 8 Crises

Wen Tiejun The 8 Crises

Secular patterns in CHinese adoption of capitalism in which each crisis is diffused by relying on the agricultural rural sector to soak up inflation and the failed investments of the urban areas.

2008= 25 million lay offs in China. Huge social source of unrest, investment in country-side as he recommended allowed the absorption of the unemployed. But China at the same time is short for labor, it needs to import labor from NK.

There are 8 crises in the history of Chinese devpt:

1960-1962

1968-1970

1974-1976

1979-1981

1988-1989

1993-1994

1998-1999

2008-2009

Each investment cycle turns into 2 debt crises.

Urbanization has high risks, when risk turns to crisis, rural base softens the crisis. If we destroy rural China there is no place for soft landing.

Government critics say preventing people from going to urban areas is violation of HR.

Every crisis creates unemployment which is turn creates social unrest. cost of capital center is defrayed to the rural area.

The 1982 boom is not a result of the market reforms but from the social foundations set in 1960, the movement to send the unemployed to the countryside under the guise of reeducation could not have been done individually

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