Michael Pettis Made 12 Predictions 2 Years Ago; Here’s the Scoreboard

When China’s economy was booming people wondered whether a slowdown would lead to social unrest, and the consensus was that problems could crop up at around 8 percent GDP growth. Now that growth has fallen below that number, some people are writing off the whole idea, but as Michael Pettis explains in a recent newsletter sent to ValueWalk, GDP growth might be the wrong stat to be looking at. “Ordinary Chinese, like people everywhere, do not care about their per capita share of GDP,” says Pettis. “They care about their income.”  Michael Pettis is Professor of Finance, Guanghua School of Management, Peking University,…