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by Gothinia » Mon Feb 20, 2012 7:40 pm
by Keronians » Mon Feb 20, 2012 7:43 pm
Salvarity wrote:Keronians wrote:
China has a bubble based economy. Look at its real estate market. It's a bubble. A friggin huge bubble.
Securities are severely overvalued. Many financial institutions have already begun shorting Chinese real estate securities. The Chinese model is also based largely on subsidising the West's standard of living via artificially devaluing the yuan, which, ultimately, costs the Chinese middle class a lot. Because their currency loses out against the dollar, the euro, the pound, the yen, etc. It's good, to an extent, for exports.
It's also based on consumption. But, what the Chinese government forgets, is that all consumption depends, in the long run, on investment. Now, due to the yuan's devaluation, little domestic investment occurs. Most of it is either from the government itself, or from foreign investors. Foreign investors won't remain forever, and the returns don't remain in China, but are taken to whatever country the foreign investors are from. So, the process of wealth creation is severely reduced.
Then we have the ethnic tensions between western and eastern China. Western China remains severely underdeveloped. And the demographic crisis. China is aging. And, unlike Japan, it's aging while not yet rich. To top it off, due to its sexist culture, there is an extremely lopsided male to female ratio.
As for outsourcing, you need not worry about that. Outsourcing has no net effect on jobs. What it does do, though, is increase inflow of cash from other nations and reduce cost of living.
The Second to last paragraph brings something everyone forgets. China is aging and even if the One Child Only Policy is temporary. It's still gonna cut the generation in half. And with half the population That means the Labor Supply is low and the Demand for the labor is gonna be the same.
Low Supply of Labour and High Demand for Labour means that the workers are gonna demand better conditions from the companies that demand them. Companies are either gonna have to provide to these demands or Move back to there host countries.
by Peoples Republic of Old Russia » Mon Feb 20, 2012 7:45 pm
by Salvarity » Mon Feb 20, 2012 7:45 pm
Keronians wrote:Salvarity wrote:
The Second to last paragraph brings something everyone forgets. China is aging and even if the One Child Only Policy is temporary. It's still gonna cut the generation in half. And with half the population That means the Labor Supply is low and the Demand for the labor is gonna be the same.
Low Supply of Labour and High Demand for Labour means that the workers are gonna demand better conditions from the companies that demand them. Companies are either gonna have to provide to these demands or Move back to there host countries.
Demand is actually going up. The labour market will thus be in constant disequilibrium, and "prices" (wages) will soar. So companies will relocate to south east Asia. Unlike developed nations, China doesn't have a skilled population, so for China, it will be detrimental.
And, even more importantly, is the fact that there will just not be enough people. Businesses will go bust because there is no labour. There is no labour to drive growth. There is, thus, no growth.
by Keronians » Mon Feb 20, 2012 7:46 pm
Mavorpen wrote:Keronians wrote:Oh, in that case, it's perfectly understandable. And desirable too.
It's consumers like you that get businesses to be socially responsible.
Indeed, I've been trying to research which countries have bad working conditions for their workers in China. Apparently Dell is up there and possibly worse than China (I feel disgusted that I have a Dell computer). It's made me rethink buying another Dell computer (mine is currently 5 years old and I desperately need a new one). I'm thinking of buying an Asus laptop.
by Dread Lady Nathicana » Mon Feb 20, 2012 7:49 pm
by Dread Lady Nathicana » Mon Feb 20, 2012 7:58 pm
Orcoa wrote:Don't you have a fucking Stormfront meeting to go to?
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