Riding High for a Fall

One might expect to see evidence of widespread poverty in Shanghai under existing conditions. In terms of real income and consumption, the average standard of living of Shanghai’s masses appears to be higher than ever before. Shanghai’s balance of trade shows a large surplus of imports over exports, made possible by the use of accumulated reserves of foreign exchange. The concentration of money, capital, and wealth in Shanghai is greater than ever before. There has been a drastic redistribution of wealth and income in Shanghai since the end of the war. Part of this has been the “natural result” of inflation, but government policy has aided in the process. Many of the factors underlying the present economic situation in Shanghai are highly artificial, and therefore temporary, and not a few people feel, that the city may be “riding high for a fall.”