How China Deals with Crisis
Since U.S has accepted the new president, the nation have had hope that he would be the one who brings this financial crisis to the end, however, issues that this world faces is more complicated than ever. The International Labour Organization (ILO), stated that twenty million more people will be out of employment by the end of 2009 than 2007.
In this article, Mrtine Bulard talks about realities of U.S. dollars and how powerful China is today’s world economy. It became obvious that China is one of most powerful country today, however, it used to be just like other countries. How come China became so powerful, how much influence they have, and is there any way that U.S. will get back to the most powerful position like where they used to be at?
One of the reasons why the U.S. now has to care so much about what China argues is because China is the second major purchaser of U.S. Treasury securities debts. China vindicated that the most serious issue the U.S. faces is a huge diversity of rich and poor people. The U.S. used be the richest country all over the world. A biggest secret of what made it possible for U.S. to become the richest country is that rich people refused to pay proper wages to their employees. Rich people got richer, poor people never be able to save money. In this country, a company hires many illegal workers, because of their few job opportunities; they have only little right to say about their harsh job conditions. Because the U.S. faces such a difficult economic crisis, Chinese prime minister stated “And particularly at such difficult times, China reached out to the US. And we believe such a helping hand will help stabilize the entire global economy and finance and prevent major chaos from occurring. I believe now that cooperation is everything.” The cooperation of those two countries seems to be an alliance of capitalists. This statement makes clear that the U.S. now can not do anything without China’s help, however, China needs less help from U.S. than it used to be.
Chinese economic growth made by producing more stuff with less cost than any other country and export products all over the world. However, compare to international markets, China has developed internal markets only a little bit. That is why, only cities have developed and county sides left aside. Riches got richer, poor got poorer. Even though, China has the highest saving rate in the world, internal market does not develop that much. One of the reasons why people save money rather than purchasing products made in China is because of their low income. Chinese government put so many priorities on an economic growth; social security and health care system were left behind. People have to save their money for their retirement, and sickness.
Even though China took the first place of world’s economy, people in China got few benefits by that. It always does not make sense that employees who actually work hard to producing stuff gets less benefits than the government. The alliance of two capitalists that have the most economic power all over the world leads other countries to move on to capitalism.
