On June 10, 2012, Keith Bradsher writes in The New York Times:
“With China’s domestic economy stumbling badly this spring as construction and retail sales slow, this country is unleashing a fresh surge of exports that is preserving millions of jobs in Chinese factories but could fan trade tensions with the West.
“Weakness in the domestic economy has led Chinese to look for jobs at export businesses.
“China’s General Administration of Customs announced on Sunday that exports had surged 15.3 percent in May from a year earlier, twice as fast as economists had expected and vaulting May past last December as the biggest month ever for Chinese exports. China’s trade surplus has expanded in each of the last three months.
“As indebted European economies slip into recession and unemployment inches back up in the United States, Chinese factories are outcompeting rivals in developing countries and the West to claim larger market shares even as global demand is barely rising.”
“China’s renewed success relies heavily on the American market, with Chinese exports to the United States soaring 23 percent in May from a year earlier, the data on Sunday showed. Chinese exports to the European Union rose only 3.2 percent.”
China is experiencing the same challenges as the United States and other rivals in developing countries. As competition to produce products and services challenges these economies, the business owners are investing in efficient technologies that will lower costs of production. Thus, the non-human factor of production is exponentially expanding and simultaneously eliminating jobs or degrading job earnings. Yet to sustain the economy’s growth there must be consumers with sufficient earnings to purchase the products and services produced. But in all these economies, including the United States, the ownership of the non-human factor of production is closely held by a tiny minority of the populations, and the vast majority of people are systematically excluded from ownership participation. Thus, the rich get richer systematically and productive capital ownership concentration is furthered, facilitated by financing future productive capital acquisition out of the earnings of existing productive capital.
This tectonic shifts in the technologies of production is unstoppable and the mixture of labor worker input and capital worker input will continue to rapidly change at an exponential rate of increase.
Without restructuring the economies, they will eventually collapse.
