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Danny Quah: ''The East grows only because the West consumes.'' Yeah right.

Written by Danny Quah Friday, 19 October 2012 17:43
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An abiding belief in the global economy is that the East is one gigantic Foxconn-shaped, steroid-boosted manufacturing facility, pumping out iPhones, shoes, clothing, refrigerators, air-conditioners, and defective toys that its own people could never afford.

 

In this narrative, the only reason that measured Eastern GDP shows any kind of life is because the Western consumer steps into the breach to buy up these manufactures.

 

The confirming natural experiment would then be what was sure  to occur post-2008, when Western imports collapsed.

 

Here is what actually happened...

 

To read the full blog goto:

 

http://dannyquah.wordpress.com/2012/10/19/the-east-grows-only-because-the-west-consumes-bitch-please/

 

About Danny Quah

 

Professor of Economics and Kuwait Professor, LSE. Economist – Growth and distribution.

 

I write about the shifting global economy and the rise of the east. I try to make large things visible to the naked eye.

 

I try to be an interesting dad.

Last modified on Friday, 19 October 2012 18:03

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