Trump's Tariffs & Trade Wars

Says China? Is this the same China that creates ghost cities to prop up their GDP?

There are two issues with this statement. One, what percentage of Chinese construction is ghost cities that won't ever be occupied, and two, is the practice still being done. Funding for housing projects in China has been throttled early this decade.

Ironically, the effect of overbuilding on the economy is to depress the GDP, by pulling down housing prices and rents, while the GDPs of F.I.R.E.-based economies like Canada, Australia or the US are greatly inflated by artificially-high housing prices, and by their use of imputed rents in GDP calculations, which China doesn't.

 
Back
Top