Friday, July 30, 2010

How do you cure poverty?


China Becomes Second Biggest World Economy

China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.

Altrendo Images | Getty Images

Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.

China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.

"China, in fact, is now already the world's second-largest economy," he said in an interview with China Reform magazine posted on the website of his agency, the State Administration of Foreign Exchange.

Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan's or America's. (Check the latest US GDP report here)

"China is still a developing country, and we should be wise enough to know ourselves," Yi said, when asked whether the time was ripe for the yuan to become an international currency.

Can It Be Sustained?

China's economy expanded 11.1 percent in the first half of 2010, from a year earlier, and is likely to log growth of more than 9 percent for the whole year, according to Yi.

China has averaged more than 9.5 percent growth annually since it embarked on market reforms in 1978. But that pace was bound to slow over time as a matter of arithmetic, Yi said.

It should be painfully obvious to the American govt that there is no substitution for making things at a profit in order to benefit the most people in the best ways.

It should be painfully obvious to the American govt that if american workers demand higher wages, then some other costs associated with operating a business must decrease in order to keep on making things here FOR A PROFIT

It should be painfully obvious to the American govt that no amount of appeals to patriotism, or legal remedies, or union leverage in the voting booth, or promises to SEIU or the UAW, can alter the course of the force of nature known as capital.

Capital has no conscience. Capital will enforce destitute Indonesians to live in cardboard boxes to make Nikes cheap enough to outsell New Balance because it is better than what they had, even though it SUCKS to us, and it is orders of magnitude in the hundreds less than a worker in North Carolina will cost. If the Nike executive has an attack of conscience, HE WILL BE REPLACED OR NIKE WILL GO UNDER. An if you seek another system such as communism or enforced social justice thru democratic socialism, the entire system will eventually fail while trying to trap this force of nature, and bring down EVERYTHING. That is the REALITY of the world. Only by MAKING THINGS for a profit will workers living in cardboard boxes conceive of organizing to better their existence more forcefully. Only by MAKING THINGS for a profit will ruthless competition force prices to increase as slowly as possible or decrease benefiting consumers.

It's time for the American people to recognize these hard realities if the elected govt cannot or will not and get rid of self destructive incompetents OR WORSE who will act to get the money from the unions or any other business source, to buy the TV time to make lies convincing enough to get just enough votes to go on in this way.

We CANNOT alter the fabric of reality .... YET.

That is not for us. But we must RECOGNIZE what is and hope that our descendants can better themselves enough to take the next steps, if they can imagine a better way.

What we are doing here in the USA today, will destroy what IS, and leave to a more ruthless way of ruling, the future of our children.

Or we will deserve what happens next.

Enhanced by Zemanta


Stogie said...

Indeed! Poverty is cured by a robust economy, because a growing economy needs more and more workers, and that means more jobs and wages and living standards that increase over time.

Those who are anti-business or rail against "corporate interests" are ignoramuses. The Marxists used to say that hiring impoverished workers was "exploiting" them; as one who has been unemployed for months, I say, "please, exploit me! I need the money!"

midnight rider said...

And if ya got enough left over exploit me to.