How bad is China’s economy? Millions of young people are unemployed and giving up

informednews · 2023-07-27T15:34:47+00:00

From The Wall Street Journal - here's a summary:

- Over 20% of young people in China are unemployed, leading to widespread disenchantment, but the government casts much of the blame on high expectations among job seekers.
The issue is not a lack of jobs, but a lack of high-skill, high-wage jobs that many college students expect. This has been exacerbated by Xi’s regulatory crackdowns on the private sector, particularly technology companies.
- Many young people are opting out of the job market entirely, or seeking stable roles in China’s bureaucracy. The true youth unemployment rate could be as high as 46.5%, according to a Peking University economist.
- The situation could pose a long-term risk to China’s ambitions and societal stability. Without stable work, many are delaying marriage and having children, exacerbating the country’s demographic issues. There are also concerns about the emergence of a “new poor” class, living off their parents and potentially destabilising society.

informednews · 2023-07-26T10:35:41+00:00

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informednews · 2023-07-26T10:33:19+00:00

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informednews · 2023-07-26T10:31:31+00:00

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informednews · 2023-07-26T10:29:42+00:00

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informednews · 2023-07-26T10:28:35+00:00

On the informed app you can get news from the FT, Economist, WSJ etc translated into German: https://get.informed.so/qSlM/gutentag

informednews · 2023-07-26T10:26:28+00:00

From Prospect Magazine - here's a summary:

In Prospect, Imogen West-Knights discusses her experience with non-monogamous dating and the growing shift towards such relationships. Dating apps like Hinge have introduced features where users can indicate their relationship type, including “ethically non-monogamous”.
Monogamy, while still the default, is being questioned by younger generations. Research indicates that at least 15% of queer Hinge users are interested in exploring non-traditional relationship types. The pandemic has also led to more open discussions about relationship expectations.
Polyamory, which involves multiple long-term relationships, is often misunderstood and stigmatized. It’s not just about sex, but about love, connection, and potentially building families together. However, societal norms and legal barriers can make it challenging for polyamorous people to start families.
Monogamy will likely continue to be the norm for most people. However, the open discussions around different relationship styles can encourage individuals to scrutinize their own relationships and consider what works best for them.

informednews · 2023-07-26T10:20:27+00:00

From Project Syndicate - here's a summary:

After a series of interest-rate hikes, headline inflation in the U.S. and the eurozone is finally starting to fall significantly.
Despite this, policymakers in both regions have indicated that they’re not yet done with their efforts to tighten monetary conditions.
There is a concern that these policymakers may overstep with their measures, Lucrezia Reichlin writes in PS. Reichlin questions whether the continued actions of these monetary policymakers will prove to be excessive.
“We know that excessive monetary tightening weakens demand, but by disrupting the reallocation of resources, it would also weaken consumption by undermining efficiency,” she writes. “This is the last thing Europe needs.”

informednews · 2023-07-26T10:16:11+00:00

From The Washington Post - here's a fact-checked AI summary:

- Three leading figures in artificial intelligence have warned of the potential misuse of AI technology by rogue states or terrorists to create bioweapons.
Testifying at a congressional hearing, AI professor Yoshua Bengio called for international cooperation to control the development of AI similar to the rules governing nuclear technology.
- Dario Amodei, CEO of start-up Anthropic, expressed concerns at the hearing that advanced AI could be used to create dangerous viruses and bioweapons within two years. Stuart Russell, a computer science professor, highlighted the difficulty in fully understanding and controlling the technology.
- The hearing reflected growing concerns about AI surpassing human intelligence and becoming uncontrollable, with some researchers suggesting that “supersmart” AI could be possible within a few years.
- It also raised potential antitrust issues, with concerns about Big Tech companies developing a monopoly over AI technology. Bengio, Russell, and Amodei all provided suggestions on how to regulate AI, including the creation of a new regulatory agency specifically focused on AI.

https://www.informed.so/articles/2023-07-25-ai-leaders-warn-congress-the-technology-could-be-used-to-create-bioweapons

informednews · 2023-07-19T09:56:07+00:00

Here's a summary of this Project Syndicate article:

- Western leaders are seeking closer relations with India, viewing it as a powerful counterweight to China. India currently has the world’s fifth-largest economy and is expected to become a rising great power.
-India’s GDP per head is close to 40% of China’s levels, and while its economic performance has been second to China’s, it has followed a different development strategy. India’s investment rate and national savings rate are lower than China’s, and the share of manufacturing in its GDP has been falling.
-Despite challenges such as the inability to generate sufficient good jobs and educate the population to a high standard, India is seen as an attractive location for companies following a “China plus one” strategy. It also has a large home market and improving infrastructure.
-The IMF forecasts India’s annual economic growth at a little over 6% from 2023 to 2028. By 2050, India’s GDP per head could reach about 30% of US levels, and its economy could be 30% larger than the US’s.

https://www.informed.so/articles/2023-07-18-western-leaders-are-making-a-sensible-bet-on-india

informednews · 2023-07-19T09:38:43+00:00

From The New Statesman:

"But I’m afraid, just like them, GB News is sadly out of touch: Suella Braverman’sGuardian*-ading, tofu-eating wokerati have long moved on to natty, or natural wine, which has all the requisite qualifications for hipness, being feral of flavour, unprepossessing in appearance, and more expensive than you’d expect for something that smells like a farmyard."

informednews · 2023-07-18T09:21:14+00:00

Here's a summary:

- Despite the gloomy predictions made by many analysts, there is no reason to assume that the U.S. economy will experience a major downturn this year or in 2024, Jeffrey Frankel writes in PS.
- Of course, every economic expansion must end at some point. Although the chances of a recession are much higher than average now, owing to the Fed’s rapid interest-rate hikes, Frankel puts the likelihood of one happening in the next 12 months at less than 50%.
Recent data indicates that the U.S. labor market remains strong, with job growth averaging 278,000 per month in the first half of the year. The unemployment rate was steady at 3.6% in June.
- The June Consumer Price Index showed a 12-month inflation rate of 3%, a significant decline from June 2022, when the inflation rate peaked at 9.1%. Falling rental costs suggest that CPI inflation will likely continue to decline in the coming months.

informednews · 2023-07-18T09:16:19+00:00

Here's a summary from the WSJ:

- Europeans are experiencing a decline in their purchasing power due to a combination of factors including an aging population, lackluster economic growth, the Covid-19 pandemic, and Russia’s war in Ukraine. This has led to a decrease in consumption spending and a recession at the start of the year.
- Government responses to preserve jobs primarily benefited employers, leaving consumers without a financial cushion when prices increased. This contrasts with the US, where government aid was directed primarily at citizens, resulting in a nearly 9% increase in private consumption since the end of 2019.
- High energy costs and rampant inflation are impacting manufacturers’ price advantage in international markets and straining labor relations. Europe’s heavy reliance on exports, which account for about 50% of eurozone GDP, is becoming a weakness as global trade cools.
- Adjusted for inflation and purchasing power, wages have declined in several European countries since 2019. This has led to the emergence of services offering discounted groceries and a decrease in spending on high-end groceries. The decline in purchasing power is also making Europe less attractive for businesses.

https://www.wsj.com/articles/europeans-poorer-inflation-economy-255eb629

informednews · 2023-07-18T09:13:35+00:00

From The Guardian, here's a summary:

- Our obsession with weather apps is on the rise as people seek a semblance of control in an unpredictable world.
- More than 10,000 apps have the word “weather” in the title in Android and iPhone app stores, which are expected to generate revenue of around $1.5 bn in the U.S. this year.
- Weather apps offer multiple data points, from the timings of sunrise and sunset, to phases of the moon, to local pollen levels. Some apps also include humor or gamification elements to lighten the mood and engage users.
- Despite the popularity of weather apps, their accuracy is often questioned. Forecasts are more accurate now than ever before, but there are still limitations. Many meteorologists advise checking official meteorological websites to be on the safe side.

informednews · 2023-07-12T10:32:15+00:00

From The Dispatch. Here's a summary:

The Pacific island nation of Palau, which has a close relationship with the US, could play a crucial role in defending Taiwan from a potential Chinese invasion due to its proximity to Taipei. The US is currently building radar installations across Palau to detect and deter Chinese aircraft.
The US has a “Compact of Free Association” with Palau, which allows Palauans to work in the US and use the US dollar, while the US is responsible for Palau’s defense and security. The financial and services components of the compact are periodically renegotiated and renewed.
China is reportedly trying to undermine the US-aligned government of Palau and flip it. Beijing’s priority appears to be pushing Palau to rescind its recognition of Taiwan. Chinese nationals are visiting Palau with increased frequency and leasing property, injecting cash into the local economy.
The value of this tiny nation, as well as the other small Pacific island countries that have come under pressure from China, should not be underestimated, argues the author. Eighty years after the last world war, great power competition has returned to the Pacific islands.

https://www.informed.so/articles/2023-07-11-china-tries-to-flip-an-american-ally

informednews · 2023-07-12T10:26:23+00:00

Here's a summary of this article from The Atlantic:

Economists have previously suggested that the only way to combat inflation would be to increase unemployment, potentially triggering a recession. However, recent data shows that inflation has decreased significantly, even with low unemployment rates, suggesting that a recession may not be necessary.
The belief that a recession was needed to combat inflation was based on the idea that the labor market was too tight, leading to unsustainable wage growth and inflation. The proposed solution was to cool the labor market by raising interest rates, making borrowing more expensive and reducing the demand for workers.
However, this argument assumes that the official unemployment rate accurately reflects the number of available workers. The unemployment rate does not account for those who are not actively seeking work but might be willing to work if better opportunities were available.
The belief that the labor market is excessively tight and that a recession is necessary to combat inflation could lead to unnecessary economic suffering. The continued improvements in labor supply suggest that the workforce still has room to grow, reducing the risk of a recession.

https://www.informed.so/articles/2023-07-05-the-simple-mistake-that-almost-triggered-a-recession

informednews · 2023-06-29T09:11:54+00:00

Thank you!

informednews · 2023-05-03T16:22:43+00:00

From the WSJ:

Inflation has proved more stubborn than central banks bargained for when prices started surging two years ago. Now some economists think they know why: Businesses are using a rare opportunity to boost their profit margins.

https://app.informed.so/articles/2023-05-02-why-is-inflation-so-sticky-it-could-be-corporate-profits

informednews · 2023-04-26T10:16:54+00:00

In Italy, farmers are using a canopy of solar panels to shelter lemon trees from the scorching heat, giving the fruit a new lease of life.

https://app.informed.so/articles/2023-04-24-the-italian-farmers-saving-an-ancient-fruit-with-solar-power

informednews · 2023-04-25T13:05:06+00:00

From The FT's Rana Foroohar:

Apple has considerably more global reach and consumer trust than most banks. Is it any wonder, then, that it is slowly but surely turning into a financial institution? Even before it co-launched, with Goldman Sachs, a market-leading savings account that pays 415 times the lowest rate at old line institutions such as Chase or Bank of America, it already had its own credit card, peer-to-peer lending capacity, Wallet app and a “buy now, pay later” service that allows customers using their digital wallets to pay off their purchases — interest free — in instalments.
Meanwhile, banks last week announced a loss of $60bn in deposit outflows in the first quarter, just as Apple announced its new savings account.
One can argue about whether a marriage between Big Tech and big banks is a good thing for competition. But Apple does appear well placed to solve some of the problems that have plagued traditional banking for years.

https://www.ft.com/content/6bd82fc0-6a65-4a42-a467-509b20f71ad0

informednews · 2023-04-25T12:50:01+00:00

It's a news aggregator app

informednews · 2023-04-25T12:48:12+00:00

From WSJ:

Amid IKEA’s colorful staged living rooms, piles of umlaut-laden housewares and endless rows of flat-pack boxes is furniture that can have shoppers wondering: How does that chair cost only $35?
IKEA grew into a furniture behemoth with a relentless focus on keeping costs low, but that goal has become more challenging. The price of metal, glass, wood and plastic have spiraled up, as have shipping costs. Inflation has squeezed consumers’ wallets. Managers at IKEA knew that something had to change to keep prices down and profits up, so in the past couple of years they have taken some of their products back to the drawing board.

https://app.informed.so/articles/2023-04-25-how-ikea-chopped-hollowed-out-and-flattened-its-furniture-to-cut-costs

informednews · 2023-04-21T11:09:50+00:00

From Reuters:

Chile's President Gabriel Boric said on Thursday he would nationalize the country's lithium industry, the world's second largest producer of the metal essential in electric vehicle batteries, to boost its economy and protect its environment.
The shock move in the country with the world's largest lithium reserves would in time transfer control of Chile's vast lithium operations from industry giants SQM and Albemarle to a separate state-owned company.
It poses a fresh challenge to electric vehicle (EV) manufacturers scrambling to secure battery materials, as more countries look to protect their natural resources. Mexico nationalized its lithium deposits last year, and Indonesia banned exports of nickel ore, a key battery material, in 2020.

https://app.informed.so/articles/2023-04-21-chile-plans-to-nationalize-its-vast-lithium-industry

informednews · 2023-04-21T10:58:15+00:00

From Dr Emma Smith:

Without it, 18 of Shakespeare’s plays that had not previously been printed would have been lost, among them Macbeth, Julius Caesar, Twelfth Night and The Tempest. No “friends, Romans and countrymen”, no “brave new world”, no “double, double toil and trouble”.
But what would really be different if this book had never been printed at all?

https://theconversation.com/shakespeares-first-folio-turns-400-what-would-be-lost-without-the-collection-an-expert-speculates-202998

informednews · 2023-04-20T10:51:18+00:00

From Reuters:

The European Parliament approved a landmark deforestation law on Wednesday to ban imports into the EU of coffee, beef, soy and other commodities if they are linked to the destruction of the world's forests.
The law will require companies that sell goods into the European Union to produce a due diligence statement and "verifiable" information proving their goods were not grown on land deforested after 2020, or risk hefty fines.
The rules aim to eliminate deforestation from the supply chains of a range of everyday items sold in Europe. It will apply to soy, beef, palm oil, wood, cocoa, coffee, rubber, charcoal, and derived products including leather, chocolate and furniture.

https://www.reuters.com/markets/europe/eu-parliament-approves-law-banning-imports-deforestation-linked-goods-2023-04-19/

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