China in the future

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jfeaz · #41 Unread post by **jfeaz** » Fri Mar 10, 2006 6:01 am

ace is a franchise system, so a lot of them really are mom and pop stores, like the one we have here.

basshole · #42 Unread post by **basshole** » Fri Mar 10, 2006 1:00 pm

Umm...they are a communist country. The workers there don't have financial flexibility. Wages are set by the government and rarely change. They have no health care coverage. The only one's making money over there is the government.

jfeaz wrote:why would you think that china's economic rise would mean that our economy is "doomed?"

nothing could be further from the truth. china is still in the manufacturing and agricultural phase, but their economy will become service-oriented just like ours.

the U.S. is simply declining in manufacturing, but that's being replaced by other sectors, like banking, real estate, securities, and software. you can't just look at the source of our products and assume the u.s. economy is tanking. it is still growing faster than china's, albeit not as much faster as 20 years ago.

china's market development can only help us. right now, we outsource so much manufacturing to china because labor is so much cheaper. but as they transfer away from socialist economic policies to market ones, their cost of labor will go up as personal wealth increases and they will eventually be outsourcing work to us, much like japan and korea currently do, because labor is actually cheaper here.

so, either we get cheap goods or lots of jobs. stop worrying!

jfeaz · #43 Unread post by **jfeaz** » Fri Mar 10, 2006 1:09 pm

basshole wrote:Umm...they are a communist country. The workers there don't have financial flexibility. Wages are set by the government and rarely change. They have no health care coverage. The only one's making money over there is the government.

China has regions called "Special Economic Zones" where they can practice capitalism and still call their national government communist, in order to save face. Hong Kong is one of these. Most of them are along the eastern seaboard.

China's been relaxing it's socialist polices for the past several decades. Private enterprise abounds. They know it's a better, more prosperous way to run a society, but they can't make an immediate change to capitalism...(look what happened in Russia) They are also an Asian country, which means they have to be sneaky about it to avoid the embarassment of having to admit they were wrong in the 20th century.

basshole · #44 Unread post by **basshole** » Fri Mar 10, 2006 1:35 pm

Yeah ain't that the truth! Only problem is the majority of the population I think lives outside the special economic zones. And I think more and more factories are going up out there so they can take advantage of the even cheaper labor. Simple fact is no one's getting rich in China.

jfeaz wrote:
basshole wrote:Umm...they are a communist country. The workers there don't have financial flexibility. Wages are set by the government and rarely change. They have no health care coverage. The only one's making money over there is the government.
China has regions called "Special Economic Zones" where they can practice capitalism and still call their national government communist, in order to save face. Hong Kong is one of these. Most of them are along the eastern seaboard.

China's been relaxing it's socialist polices for the past several decades. Private enterprise abounds. They know it's a better, more prosperous way to run a society, but they can't make an immediate change to capitalism...(look what happened in Russia) They are also an Asian country, which means they have to be sneaky about it to avoid the embarassment of having to admit they were wrong in the 20th century.