Big, but not enough: China's stimulus package may not be effective

Raising wages, opening up the domestic consumer market to foreign goods, and enhancing the social welfare net are the usual recommendations of economists

The government of China has finally admitted that there are structural problems holding back the world’s second-largest economy. The process of “rebalancing” economic activity away from being investment-led to being consumption-led has been underway for a while. But there are significant issues, particularly the state of China’s oversized real estate market and the linked issue of local-government indebtedness, which must be addressed as well. The country’s top decision-making group, the Politburo, ended its recent meeting with a call to meet growth targets and a promise to support the beleaguered property sector, saying it would not fall any