The flight of the Chinese economy

$25 Billion in One Day (11/1/17)

$25 Billion in One Day (11/1/17)

Alibaba cleared $25 billion in sales on Singles Day in 2017 (the equivalent of US' Black Friday). $25,000,000,000!

That's simply jaw-dropping considering China still remains a developing country (based on per capital GDP measures). But according to the World Bank, China's poverty rate dropped from 88% in 1981 to 6.5% in 2012...500 million people were lifted out of poverty! That should be the case study of the century.

It's simple really...just pump money into the economy. Build roads. Infrastructure. It also helps when there are few governmental regulations (compared to the US), and you can literally build a 57-story skyscraper in 19 days. And with more jobs and more money in the pockets of the New Chinese, they will inevitably dump that money back into the economy...

Why? In my opinion, the answer lies in a simple understanding of psychology, social media, Chinese culture, and comparison theory. With the advent of social media, when you see your friends posting pictures on WeChat of their new LV bags, you need one as well. When your cousin buys a new flat, you better start saving! Everyone needs to prove their external worth somehow whether it be through a Ivy League university attached to your name, the size of your flat, or the brand name of your bag.

While China's growth is slowing (people freak out but this is basic economics), there is still a long way to go considering China is still considered a "developing country."