Posted 2/22/2024, 12:30:12 PM
Economist Calls for China to Issue Cash Coupons to Spur Lagging Consumer Spending
- China urgently needs to issue cash coupons to boost insufficient consumption, says economist Teng Tai
- Cash coupons most effective way to encourage spending; $1 coupon leads to $3-5 in spending
- Money saved from eliminating inefficient infrastructure can fund coupons
- China consumption still low at 43% of GDP compared to other major economies
- Policymakers skeptical about providing cash to households, prefer infrastructure spending