this post was submitted on 18 Dec 2024
322 points (97.9% liked)
Technology
60071 readers
3521 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Countries like China, Germany, Taiwan, etc. have competitive exports because they have direct and indirect subsidies to their manufacturing sectors at the expense of their household sector.
Some of these subsidies include a weak currency relative to their economy, weakened labour laws, preferential interest rates, capital controls, labour movement restrictions, etc.
China uses all of these. Germany primarily used the Hartz "reforms" which basically decoupled wage growth from productivity and GDP growth.
The reduces the household share of national income and they cannot afford to consume the production of their manufacturing sector and therefore the excess production must be exported.