The China Syndrome

There are some amongst us, humble self in the lead of course, who have been braying that the point of the Chinese plan is not just to be the finest example of 19th century capitalism, but to subsume the world to it.  Kind of like England in its glory years.  Payback's a bitch, opium wars and all that.

Now, all of a sudden, American Capitalists are waking up.  After all these years of "exploiting" lax controls in the Chinese labour market (well, if there are any controls at all), they've finally figured out that this was just the catnip to draw them in.  The Chinese were smart while Europeans were just figuring out how to draw stick figures in caves, for crying out loud.  China has a devasting population problem, which dwarfs ours.  India, too for that matter.  Both have to figure out a theory of distribution which can be imposed on capital.  The world markets haven't sufficed to absorb their output, so they need their workers' ability to buy.  One of the best ways to do that is to move from 19th century capitalism to tech based capitalism.  Requiring tech transfer is one way.  Boeing did that in spades with the 787 and numerous countries (and has nearly destroyed the company in the process; perhaps the Chinese were paying attention).  This isn't new.  Just better played, because it's a much bigger market, potentially.

The problem is resources.  The USofA consumes about 25% of global resources to support our highly skewed income distribution; in other words, 25% of resources to make 1% of the USofA really comfortable.  At ~350,000,000 folks that's 3,500,000 folks who live well.  Eating up 25% of the globe's resources.  And the Indians and Chinese think their 2.5 billion (and growing like a nuclear explosion) can live as our 3.5 million???????????  Ain't gonna happen.

Also in the last days' news was this assessment of food costs.  Malthus was right, just a bit ahead of his time. 

Don't jump to the conclusion that American capitalists are looking out for the American worker in all this, or even the American consumer.  They're goal is to sell to that, supposed, "middle class" in China just as if they were exporting from the USofA to China.  The Chinese aren't that stupid.  "You wannie sellie hereie, you gettie tickie hereie."

Welcome to the major leagues.