US could be the new Europe and China could be the new US.
By Daniel at 18 January, 2010, 12:45 am
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
US will not go down the sink as many are predicting, but it may have to share the prominent position with China.
Folks predicting/wishing a quick Chinese decline seem to not realize two key factors:
1. China has enormous people power that other flash-in-the-pan economic successes did not have. They have about a 400 million strong middle class that can start consuming more and they have another 300 million strong lower class that can be inspired or coerced (whatever works) into working hard in the industrial juggernaut. An average Chinese still has the cultural tradition of working hard without complaining.
2. Their oligarchical political system lends itself to a very disciplined work force and citizens that are easily controlled by either force, praise, pride or some other means. No other country can operate its factories (and the country itself) as efficiently because in other countries the workers have too many rights to be easily pliable. When the party decides a road has to be built to Everest, it gets built (no voting initiatives, no debates, no dilly dallying in the political process). The whole country is run like an efficient private corporation, run by a board of directors (party leaders).
China may not be dependent on the US consumer for too long. They are creating new markets for themselves by expanding into South Asia, Latin America, Africa etc. If they are loaning money to enable countries to buy Chinese products, why limit themselves to the US? Loan it to African nations to buy excess capacity produced by your factories…Loan it to Malaysia, Indonesia, Thailand, Ghana, Venezuela… You even have better chance of recovering it, since these countries are no match if comes down to using force.
Folks should not make the mistake of underestimating China. They have a long history, strong cultural identity, a huge population, an aggressive mentality, centuries of piled up hunger and right now, the momentum as well.
- Wall_E
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.