China Bears — who obsess over local government debt — love a guy like Huang Qifan, the Chongqing mayor who leads the country in public housing construction and other government-funded projects.
But Huang isn’t just spending recklessly. He calls himself a student of supply-side Reaganomics, and he thinks the U.S. should return to these policies too.
Regarding debt-fuelled spending: “If you sit there dumbly waiting for funds to be issued to deal with the costs of reform, then you won’t be able to accomplish anything.”
Regarding the western world: “My sense is that if currently the European and American economies want to improve and be revived, that really must be based on the supply-side theories.”
So far things are booming in Chonqing. The southwest city is the only place in China that hasn’t needed to restrict property purchases thanks to a municipal luxury property tax, as well as aggressive efforts to build public housing.