TMI Show Ep 186: “Are Lower Prices Bad?”

China’s cutthroat business world is making prices cheaper for consumers. But deflation could cause a depression. That’s the economic paradox we’re talking about on the “TMI Show with Ted Rall and Manila Chan”!

China’s “involution” crisis: fierce competition and overcapacity are strangling industries. A hot new technology or product sparks a frenzy of copycats, with hundreds of Chinese manufacturers then flooding the market. They slash prices, ramp up production, and battle for survival, often with razor-thin margins or outright losses. Local governments fuel the chaos, backing hometown champs with cash and clout, pushing industries like steel, solar, and electric vehicles into a brutal race to the bottom.

Take BYD, China’s EV giant, which slashed prices on nearly two dozen models in May, only to get a slap on the wrist from a government-linked auto group for sparking “price wars.” Xi Jinping is on the case, vowing to curb this “disorderly competition” and outdated capacity. With Trump’s tariffs slamming exports and a slowing economy piling on unsold goods, China’s facing a deflationary spiral—its GDP deflator has tanked for eight straight quarters.

The People’s Daily warns that price wars could drive out quality players. Can China tame this self-defeating cycle, or is it too late? Could something like that happen here?

Plus: “Black Sabbath” member Ozzy Osbourne’s legacy celebrated after his passing at 76.

House Speaker Mike Johnson sends Congress home early to duck releasing the Epstein files.

Cannabis and psychedelics show promise for eating disorders.

Somerville’s cat mayor race heats up.