Keynesian Spirits

What Goes Around, Comes Around…

An extract from Jonathan Fenby’s The History of Modern China (talking about the country at the end of the 19th century):

“Growing exports of food exposed farmers to international price fluctuations. The trade deficit rose as other nations competed with China’s traditional sales abroad of tea and milk…Imported coal was sold for less than that mined domestically. Handicrafts were hit by imports, notably cotton goods from Britain…Some 700,000 cotton shirts made in Lancashire were sent up the Yangzi from Shanghai to Sichuan each year, undercutting local production despite the cost of shipping them across the globe.”


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