Krugman seems a bit unclear (unusual for him).  He relates how the Chinese investment has focused on real estate leading in other reporting on an excess supply of housing on the ring of large cities. As he says - this is a stark case of diminishing returns. My question is: what other kinds of investment does he suggest? Maye not in bricks and mortar, but an improved safety net?

Krugman seems a bit unclear (unusual for him).  He relates how the Chinese investment has focused on real estate leading in other reporting on an excess supply of housing on the ring of large cities. As he says - this is a stark case of diminishing returns. My question is: what other kinds of investment does he suggest? Maye not in bricks and mortar, but an improved safety net?

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