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Chinese Birdcage, The: How China's Rise Almost Toppled the West: 2016
Published by Palgrave Macmillan
This book vividly describes how China's rise in the early 2000s led to rising profits and declining labor income everywhere, ultimately resulting in the global financial crisis. Under Deng Xiaoping's policy of 'reform and opening up' in the 1980s, China quickly became the world's factory floor...but powerful political leaders envisioned a world in which the market economy would be trapped within the confines of a planned economy. With China's admission into the World Trade Organization in 2001, almost a billion people joined the global workforce, driving down the real wages of blue- and white-collar workers in the US and Europe while also lowering interest rates, which fueled housing bubbles and destabilized the financial sector. This book explores China's significant influence on western economies by focusing on the links between the labor market, corporate profits, and interest rates, using Arthur Lewis's framework for economic growth with unlimited supplies of labor to argue that by 2010 the world economy - and political situations - had been set back almost one hundred years.
1. The Chinese Birdcage2. Western Triumphalism3. China as the World's Factory4. Housing Bubbles across the Western Hemisphere5. The Global Financial Crisis6. The Economic Fallout7. Unlimited Supplies of Labor8. China's Economic Development9. Global Imbalances and Corporate Cash Piles10. The Capitalist Surplus and the Shortfall in Demand11. Piketty Reconsidered12. What Lies Ahead?
Heleen Mees was Adjunct Associate Professor at New York University's Wagner Graduate School of Public Policy. She is a columnist for the Dutch daily De Volkskrant and she writes opinion articles for various international publications including Foreign Policy, The Financial Times, Project Syndicate, and NRC Handelsblad.
Reviewer: Lei Ping