The western narratives never fail to stop talking about the collapse of the Chinese economy. China's economy collapsing, not growing, no more double digit growth, and facing a crisis because its population is getting old and declining. The underlying assumption is that without growing population, an economy will start to shrink. On the contrary, a growing population is about assured economic growth. Keep growing the population and see the GDP growing in tandem. This is the theory of the old economy.
For decades, centuries, growth is always associated with labour. Labour is a main factor of production. Labour is also a major component in consumption and directly linked to GDP. The natural flaw, labour grows old and will become unproductive and a liability. The economic balloon based on labour input must go bust. There is no escape clause, caveat, new thinking, new economy that don't rely mainly on labour.
If labour is the sure formula for success, India will be just as rich and economically wealthy as China and should have surpassed China while China should be slowing down because of shrinking population. It does not work that way. China is still surging ahead faster than India in nominal and absolute terms. India's fake GDP growth data is anything but believeable.
China is facing a population decline. Hooray, China is going to collapse, so say the doomsayers in the West. But China is not standing still and doing nothing about it. China's economic strategies are not going to be restrained by the thinking of the old economy. China is innovating and changing fast in the new economy when growth is not simply relying on increasing population. China is into automation, AI, machination, robotics, raising productivity independent of labour. In fact China's productive capacity is growing by leaps and bounds, with lesser labour, no labour in many cases. China is going to face with labour redundancy, excess labour, more labour than needed.
A declining population may be what is needed in China. Labour should not be just a factor of production. Labour is life, a life to live and enjoy, not as a forever cog in the wheel of production. Chinese workers are retiring much earlier than many developed countries, 55 for women and 60 for men, and the retired workers are living well with state pension. The seniors in China are living life, going for holidays and making the best of their golden years in pursuit of a better meaning in life.
Is China crying about a declining population? Is the Chinese economy slowing down, grinding to a halt? The Chinese economy is still growing despite all the sanctions, tariffs, trade barriers and trade wars. Can you imagine how much faster will the Chinese economy grow in a fair and competitive world without the American and western terrorists putting all the obstructions and road blocks to stop China from growing its economy? Can you imagine how many more EVs and other products China could sell into America without the trade wars and what would be the trade surplus for China?
China's economy is still growing and unstoppable, without a growing population to input more labour into its economy. China's economy is moving away from the old economy that is highly dependent on cheap labour and rising population.
PS. Technology, ie automation, machine, AI, robots, is now a more important factor of production, more efficient and productive.
6 comments:
The echoes in the chamber never die down. They assumed that just repeating it will make it come true. Now, with AI generated propaganda, expect more of the same.
If the Chinese economy is slowing down, how come China is chalking up record trade surpluses year after year? Just printing money like the USA to give a semblance of growing? Such printing of money would make the Chinese Yuan lose value fast. But the Chinese Yuan is strengthening, so what happened? In fact, China has always been accused of keeping the Chinese Yuan artificially low, well below its actual worth and should be kept higher.
Oh yes, Wall Street is at all-time highs every other day. So, the USA should be doing extremely well economically. Good luck to the investors.
Scott Bessent has been boasting about the economy growing out of its deficit. Holy smoke how is that mathematically possible with the USA growing at just 2 to 3%, while servicing interest rates on its long-term bonds are hovering at around 5%. The USA needs to grow above 5% to grow itself out of its deficit.
It is all magic. Even an economy in ICU can nurture a stock market of all-time highs, what else is not possible.
This is the same narrative that the white party here keep harping on.."we need more foreign labour".. because sinkies mai-cho-kan only want cdc voucher..foreign labour will create more jobs for sinkies..we need them to replace the lazy sinkies.. White party dare not tell sinkies what is their targeted total population that this island will eventually have.
If they tell you, it is less worrying. If they do not tell you, it is most dangerous.
Why not use magic to create all the manufacturing facilities/ Why not use magic to make rare earth magnets? Can also use magic to make all the US$40 trillion just disappear. Trump is good at magic. He signs executive orders like waving a magic wand, big signatures with all the props behind him. Very imposing that sends shivers down the spine of enemies.
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