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Chinese economy expected to have slipped into deflation as recovery falters
(www.theguardian.com)
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this post was submitted on 08 Aug 2023
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The current rounds of layoffs in the last couple years have noting to do with people not buying washing machines from the washing machine factory... It has to do with the washing machine CEO saying that we have too sell 200% MORE washing machines this year compared to last OR we're going to call that "nobody's buying washing machines".
You're quoting theory while ignoring the failed reality around you.
No washing machine factory has lost any money, they just didn't make as much profit as they hoped for - even then, plenty of them are seeing record profits and still doing layoffs and raising prices to consumers artificially to exploit the pandemic profiteering moment and juice their stock price.
What I described is independent of CEO behaviour. It's also not actually about washing machines, it's about money needing to circulate and consumers not consuming stopping that. How China got itself into the situation is irrelevant, what matters, on the business side, is the sudden lack of liquidity as the company's source of income dries up while costs (wages, anything fixed even if you shut down production) continue.
What you say about CEOs might be true -- but then China is a command economy. It could just order CEOs to cut the shit. The comrades in the central committee, in all their wisdom, apparently only want to harden the Chinese people against hardship that's why they're crashing the economy it is for the betterment of the nation and the success of socialism.