1/5
WSJ: 'The message will also mark an evolution for Yellen—and the end of a bygone era in U.S. economic thinking about China. Like other economists of her generation, Yellen, 77 years old, said the surge in Chinese exports at the start of the 21st century had seemed like a…

2/5
development, providing low-cost goods to global consumers. But the inexpensive exports also helped hollow out the U.S. manufacturing base in what became known as the China shock, leaving Americans out of work and fueling a political backlash to globalization.'

3/5
The article quotes Yellen as saying: “People like me grew up with the view: If people send you cheap goods, you should send a thank-you note. That’s what standard economics basically says,” she said. “I would never ever again say, ‘Send a thank-you note.’ ”

4/5
This does indeed mark an astonishing discovery for 'standard economics'. People are not just consumers. They are also producers, and the extent to which they can consume does not depend on how cheap consumer products are, but rather on how much they produce.