I've seen this gif a lot showing that global inequality is falling. But no one seems to notice or mention that the main driver - emerging Chinese middle class - happens in the most protectionist country. https://ourworldindata.org/global-economic-inequality …pic.twitter.com/bEfsPUCT8D
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I think the key reason that I did not mention which is important regarding the formation of a new middle class, is labor price differential. Containers and sea shipping does not compensate for all the other advantages of making in China.
What I'm trying to say is that if you have those positive characteristics (good infr., demographic dividend, sensible policy, smart people), relative to a developed country, plus a cost differential, you can probably create a middle class without protectionism.
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Afaik protectionism was only relevant in the development of certain industries in China, i.e. high technology. A middle class would've been created on the back of apparel, shoes, injection molding, electronics assembly alone.
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Well yes if you have a huge labor price difference then you dont need to add anything on top of that. By definition protectionism only applies in cases where you are not competitive. I mean youre probably right to an extent but question is to what extent.
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We dont really know since no one has ever tried afaik. Historically selective protectionism has been the norm. Sometimes it happens on a small scale like Californian programmers if some skill is in shortage but with China it seems a really huge chunk of society.
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