China takes new steps to boost growth
China announces new measures, including infrastructure spending and increased lending for exporters, to bolster its economic growth.
It appears that the CCP is only half stupid, economically speaking.
Yes, infrastructure projects will help boost growth a little bit in the short term and, if it’s not being done for infrastructure’s sake, it can yield some long term economic gains.
However, that’s most likely not the bugaboo that’s causing the Chinese economy to stagnate, nor is it what’s going to save the Chinese Communist Party from collapse.
Workers need to be paid according to the productivity and profits that they realize. The low wages were a boost for the Chinese economy when it was all starting, no doubts there. However, times have changed, and they could be focusing on building a strong domestic economy that can then export the surplus of its produce, rather than depend on markets that aren’t likely to be coming back anytime soon, owing to the policy choices of those markets’ governments and the decisions of their societies with regard to those governments.
This whole intertwined economic system is set for collapse. Too many large actors are too enmeshed with each other, leading to a very big, yet very fragile bind holding it all together. It would be better for countries to focus on domestic production and consumption first, before worrying trading to other countries. Then, workers can be paid according to the value of their work, people can consume domestically and export the excesses overseas according to the real principles of free trade that Adam Smith had articulated all those years ago.
Bearing in mind that this is going to, eventually, become a moot point if machines take over all of manufacturing, warehousing, agriculture and high level design jobs. We may evolve into a system where machines work and humans do next to nothing, something that is not the best for overall survival, since we’re likely to become overly dependent on machines to do everything for us, thus leaving us open to the possibility of having to re-learn how to work hard for survival and well being.
I think that this “Pure Land” of ours, is going to be nothing more than an unsustainable, fragile and easily shatterable thing that will leave millions or billions to die as soon as slight changes in the environment, the universe, or our condition in it sets in. I’m scared of a world without work, which is something that we’ve never had before as a species. As soon as you make life physically or psychologically easier for a person, it becomes that much harder to make them go back to it willingly. We could get fat(ter), lazier, irresponsible, non-responsive, and non-compliant with the signals from the environment that force us to strive to not only improve ourselves, but to ensure our actual survival and well being as organisms in nature.
Work is hard. But species-wide death, violence, and desperation will be harder, thanks to these machines.
The machines that we make may be intelligent. But how intelligent, really, are the people who make them? How many steps ahead are they thinking? And, where is the sense of panic, fear, and mistrust of an entire species being waited on hand and foot? How will we survive if we revert back to the mentality of infancy, as adults, for even a few generations? What will we do when our precious little toys and creations break or are destroyed enmasse? What will become of us without engagement in this thing we call life, the universe, and everything.
What will we do if and when things come undone?
Think about it.
See on www.bbc.com