Yes, World War is a traditional reason to borrow and spend more. And can be very profitable for some. But closing the wealth gap this way has to require a long slow war. Time to build capacity for war goods and staff those factories.
Sending folks off to war may increase wages but low birth rate seems to imply we will need immigrants. Jobs seem to be available for those who seek employment. Lack of needed job skills might be a limitation.
China’s economy is slowing dramatically. I do not know how stable China will be. Because China and the US have the Pacific between them, other than Taiwan, there is very minor military competition.
The centerpiece in any of these conversations is the US corporate tax rate and top income bracket rate. It can solve all the ills. The path is wonderful and long; instead, we are wasting time with stupid.
Yes, their economy has slowed to [goofy checks math] only 4.3%, only twice as fast as that in the US. What a tragedy.
Meanwhile the population in China is growing at -0.2%, implying that Chinese are becoming wealthier just by standing there. I can see how that would be destabilizing.
Congress stopped closing estate tax loopholes in 1990. Now billionaires pay virtually no taxes. This article is not nearly as good as the the interviews with that Ivy League tax lawyer that I can’t find, but hopefully it makes the point:
Taxing billionaires would add hundreds of billions or more to the coffers, take some of the load off of workers, and the billionaires would still be billionaires.
China’s overall corporate profits have not collapsed, but they are experiencing extreme divergence. While high-tech manufacturing, AI-related hardware, and export-heavy sectors are seeing skyrocketing earnings, domestic-facing, consumer, and property-related corporations are struggling with severe profit margin squeezes.
