Time Magazine's article can China Save the World? Read the article and comment on the shape of China's economy and your thoughts and opinions related to this.
Monday, August 3, 2009
Can China Save The World Economy?
Time Magazine's article can China Save the World? Read the article and comment on the shape of China's economy and your thoughts and opinions related to this.
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2 comments:
The great economic boost of the economy of China can be explained simply saying that because the goverment owns all the companies, so all the money that the companies make goes directly to the state. We could say that China itself is like a giant coorporation.
But, In spite of the fast growth of it's economy, still doesn't reach the level of the biggest economies like US, Japan, EU. So is not in position (yet) to command the global economy and get out of the rescesion.
There are several reasons why China is doing so well in the world economy. One, the gov't regulates all corporate functions and products inside of it's borders. Second, where has all the jobs from major multi-billion dollar companies vanished to? Well, first let's put it this way. You have a choice to hire a man that works for $10, or to hire a man who works for $5. Which would you hire? Obviously, the man who works for less. While Americans work for $50k a year, a man in China will work for $10k a year. While we would like to believe that these corporations would focus more on the qualifications of those they are hiring, sadly, it is based off of the amount one is willing to work for. So, instead of keeping the companies that belong in the United States, they are sent overseas so that they may reap a much greater profit off of products, than what they sew into the hard working staff that allows for the products to be made. It seems like a reasonable idea, yes. But, when the jobs are removed from us, and given to others, yet the prices of products are not reduced in reaction to the declining amount of jobs, you are left with a serious issue. Why is China doing so well? They have the world's market in the palm of their hands. And what's worse, our very own gov't allowed for such to happen. Do I believe that China may end up dominating the world in the economic realm, I believe that if the people up on the Hill don't wake up, then the idea of it happening may very well become a reality.
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