ο λαός και τα συμβόλαια
Robert Peston reports from Wuhan BBC News - Will China shake the world again?
When our economies went bust, we stopped buying - and almost overnight, factories turned off the power, all over China. I visited China at the time and witnessed mobs of poor migrant workers packing all their possessions, including infants, on their backs and heading back to their villages. It was alarming for the government, and threatened to smash the implicit contract between the ruling Communist Party and Chinese people - namely, that they give up their democratic rights in order to become richer.
So with encouragement from the US government (we interviewed the then US Treasury Secretary, Hank Paulson), the Chinese government unleashed a stimulus programme of mammoth scale: £400bn of direct government spending, and an instruction to the state-owned banks to "open their wallets" and lend as if there were no tomorrow. Which, in one sense, worked.
...Here is the thing: when a big economy is investing at that pace (σσ 50% του ΑΕΠ) to generate wealth and jobs, it is a racing certainty that much of it will never generate an economic return, that the investment is way beyond what rational decision-making would have produced.